Sub-Saharan Africa Islamic Finance Assets to Grow up to 25% in 2021; Governments Seek Financing

Islamic finance assets in Sub-Saharan Africa are expected to grow as much as 25% in 2021 to return to pre-COVID-19 levels as governments reopen their economies, said Director for the Middle East, Africa and India at Jersey Finance, Faizal Bhana.

Why it Matters?

As African nations could struggle to raise financing coming out of the pandemic, Sukuk is one way for governments to raise funds from international markets. Islamic finance is relatively undeveloped in Africa; a report by Islamic Finance Advisory & Assurance Services estimates that Islamic finance in Africa accounts for a mere 1% share of total assets. This is despite almost one-third of the continent’s population being Muslim.

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