Islamic finance development in a Shariah-compliant manner has become a centrepiece in many countries in the African region. Countries like South Africa, Zambia, Tanzania, Nigeria, Senegal and Kenya among others have put in place necessary legal and regulatory frameworks to enable Shariah-compliant banking and financing offerings in their respective jurisdictions.
This growth in the African region is in tandem with the emerging interest of Islamic finance globally. Based on current growth momentum, the global Shariah-compliant financial services industry is estimated to reach USD 6 trillion in assets under management by 2020, with an increased growing number of new market entrants.
Shariah-compliant finance development in Africa has an important role to play in unlocking the region’s untapped potential in various sectors across the continent. The need to boost prosperity is in great demand, and this financing growth will provide greater access to liquidity pools from the Middle East right the way through Africa. The demographic of Africa provides potentially strong demand for Islamic financial services and products such as credit, savings and insurance.