Published On: Thu, Sep 1st, 2016

Key Islamic Finance Propositions for Enhancing Growth in Africa

Key Islamic Finance Propositions for Enhancing Growth in Africa 

Although Africa has bright demographic and economic prospects, several key enablers are necessary to support growth. Growth drivers on the continent are becoming increasingly diverse, with the resource-based, the infrastructure construction and services sectors taking the lead. Islamic finance has tremendous potential to play a more substantial role in supporting the funding gaps in Africa while enhancing financial inclusion rates in the region. Several African nations have recently tapped the global sukuk market for sovereign funding and, while the Islamic banking segment in Africa remains at a comparatively early phase of development, the stage is set for high growth driven by Africa’s large and under-served Muslim population and increasing awareness of Shari’a-compliant products.
The International Islamic Banking Summit Africa: Djibouti 2016 is delighted to announce the participation of Abdelilah Belatik, Secretary General, General Council for Islamic Banks and Financial Institutions (CIBAFI); H.E. Dr. Sidi Ould Tah, Dierctor General, The Arab Bank for Economic Development in Africa (BADEA); and Jaafar S. Abdulkadir, Head of Islamic Banking, KCB Bank Group who will provide insight on How Islamic Finance can Better Connect Africa to the Gulf, Broader OIC Markets and Beyond.
Speaking ahead of the Summit, Jaafar S. Abdulkadir, Head of Islamic Banking, KCB Bank Group, said that: “As home to an increasing Muslim demographic, the impact on demand for Islamic finance in Africa will be sizable. Inadequate access to funds is a major developmental constraint for Africa and many SMEs, entities and entrepreneurs remain outside the mainstream banking system. Islamic finance has the potential to be a catalyst for financial inclusion across Africa and can become an important source of capital for small companies and individuals. Africa’s challenges, including infrastructure financing and the need for wider access to financial services, also provide an opportunity for the Islamic finance industry to grow. KCB Group recently unveiled its Islamic banking unit in a move aimed at tapping into the growing demand for Islamic financial products, especially across the East African region. While the launch paves the way for the full roll-out of Sharia’h compliant products, the Islamic finance industry still needs to create an enabling environment and economies of scale and the International Islamic Banking Summit Africa: Djibouti 2016 presents the kind of international platform where GCC and international players can engage the African market to forge new business relationships and stimulate economic growth of the region and the entire continent.”
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Key Islamic Finance Propositions for Enhancing Growth in Africa
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