South Africa’s Sukuk Market to Expand in 2020

In the light of potential Sukuk issuances in South Africa, Maahir Jakoet (MJ), a Portfolio Manager at Old Mutual Investment Group’s Customised Solutions, stated that in the wake of market uncertainty surrounding the COVID-19 pandemic, South Africa was set to see an expansion in its Sukuk market in 2020.

This was to be backed by increasing requirements for Government funding to rebuild the economy post COVID-19, adding that Sukuk supported sustainable development without the borrower being saddled with interest-based debt financing.

Earlier in 2020, the Government of South Africa announced plans to issue Islamic financing instruments in order to meet its widening budget defici...