Islamic Finance in Sub-Saharan Africa: Status and Prospects

28 Pages Posted: 4 Sep 2014

See all articles by E. Gelbard

E. Gelbard

International Monetary Fund (IMF)

Rodolfo Maino

International Monetary Fund (IMF)

Yibin Mu

International Monetary Fund; Harvard University; World Bank

Etienne B. Yehoue

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: August 2014

Abstract

Islamic finance is a fast growing activity in world markets. This paper provides a survey on Islamic Finance in SSA. Ongoing activities include Islamic banking, sukuk issuances (to finance infrastructure projects), Takaful (insurance), and microfinance. While not yet significant in most Sub-Saharan countries, several features make Islamic finance instruments relevant to the region, in particular the ability to foster SMEs and micro-credit activtities. As a first step, policy makers could introduce Islamic financing windows within the conventional system and facilitate sukuk issuance to tap foreign investors. The entrance of full-fleged Islamic banks require addressing systemic issues, and adapting the crisis management and resolution frameworks. The IMF can play a role by sharing international experiences and providing advice on supervisory and regulatory frameworks as needed.

Keywords: Islamic banking, Sub-Saharan Africa, Financial sector, Financial institutions, Insurance, Microfinance, Bonds, Islamic Finance, sukuk, islamic banks, banking, islamic bank, takaful, murabaha, islamic financing, islamic products, islamic economics, islamic banking activities, islamic development, islamic bonds, islamic principles, islamic investment, islamic fund, islamic bond, ijara, islamic finance instruments, islamic mode, musharaka, islamic research, banking activities, islamic market, islamic mortgages, islamic insurance, islamic instruments, islamic banking institutions, islamic banking products, islamic law, diminishing musharaka, ethical principles, bank deposits, resource allocation

JEL Classification: F30, G15

Suggested Citation

Gelbard, Enrique and Maino, Rodolfo and Mu, Yibin and Yehoue, Etienne Baba, Islamic Finance in Sub-Saharan Africa: Status and Prospects (August 2014). IMF Working Paper No. 14/149, Available at SSRN: https://ssrn.com/abstract=2491600

Enrique Gelbard (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Rodolfo Maino

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Yibin Mu

International Monetary Fund ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Harvard University ( email )

Cambridge, MA 02138
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Etienne Baba Yehoue

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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