Central Africa new market for Islamic banking

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AlHuda CIBE organizes African Islamic finance road show in Cameroon

Staff Reporter

Lahore

“Islamic Banking and Finance market in Africa can be easily divided into East Africa (Including Kenya, Tanzania, Uganda etc.) Northern Africa (Morocco, Tunis, Al-Jazair) West Africa (Senegal, Nigeria, Mauritania) and South Africa where Islamic Banking and Finance is increasing rapidly. Besides Islamic Banking, there are Sukuk, Islamic fund, Takaful and Islamic Microfinance institutions actively working in these countries and are making rapid progress.
The penetration of Islamic Finance is comparatively low in central African countries with respect to these countries. Islamic banking is hardly found in Central African countries including Cameroon, Chad, Gabon,” said Muhammad Zubair Mughal, Chief Executive Officer of AlHuda Center of Islamic Banking & Economics (CIBE) while addressing to the conference about Islamic Finance on the occasion of Islamic Banking & Finance Road Show organized recently.
He added saying, “Central African countries are replete with opportunities for the development of Islamic Finance along with Sukuk, Takaful and Islamic Microfinance. Additionally he said that if Islamic banking & Finance industry is viewed globally, the Africa and Central Asia have great potential for Islamic Finance where Africa has special significance having 54 countries and 53 % Muslim Population while the development of Islamic Banking & Finance and Takaful is much easier as there is only one Central Bank working in these countries. Likewise the only Insurance authority CIMA is functional.
He said that promotion of Islamic Finance in central Africa will bring about a pleasant change in the economy of these countries furthermore foreign investments in FDI will be increased. Government will enjoy the benefits of financial sources through Sukuk project. Poverty will be mitigated in central African countries through Islamic Microfinance.
He further said that AlHuda CIBE in association with its partner African Islamic Finance Consulting (AIFC) do have a definite working strategy for Islamic Banking in African countries and soon introductory Awareness programs about Islamic Banking will be organized in Chad & Gabon.
Al-Huda CIBE is organizing an African Islamic Banking & Finance Road Show for the promotion of Islamic Finance and Cameroon in this context holds great importance.