Uganda’s Muslim leaders have condemned the “ignorance” of church leaders trying to block Islamic banking legislation in the majority-Christian nation. Earlier this year, parliament amended a finance bill to introduce Islamic insurance. However, church leaders led by Archbishop Stanley Ntagali, head of the country’s Anglican church, has urged President Yoweri Museveni to reject the legislation. Nsereko Mutumba, spokesman for the Uganda Muslim Supreme Council, said the church leaders were just ignorant of the Quran, it has nothing to do with ISIS, Boko Haram or any other group claiming to kill non-Muslims. The Bank of Uganda is currently establishing a sharia advisory board to regulate and supervise Islamic banking.
Jaiz Bank, the pioneer Islamic bank in Nigeria, has concluded plans to go national, few months after it received an approval-in-principle from the Central Bank of Nigeria (CBN) to extend its business nationwide. Authorities at the bank said additional branches would soon open in Lagos, Ibadan, Ilorin and Port Harcourt.
Resetting Priorities - Redefining Roles
Five years ago, the Global Donors Forum was convened in Dubai to take on a challenging task: to define the roadmap for Muslim giving into the next decade. As a growing network of philanthropists, grantmaking foundations and socially responsible corporations, the Forum lead a consultative dialogue among the thought leaders from which, it was hoped, a new social compact could emerge.
Half a decade on, with the world having changed dramatically as events in the Middle East would attest, the Global Donors Forum 2016, has a new set of issues to focus upon. Foremost among these is the need to rigorously analyse the past decade in order to ascertain how best to formulate strategies to counter emerging challenges. The GDF 2016 will, therefore, attempt to set new priorities as it looks to redefine the role of philanthropy, with a focus on the Muslim world in a radically changed global landscape.
Jaiz Bank has concluded plans to go national, few months after it received an approval-in-principle from the Central Bank of Nigeria (CBN) to extend its business nationwide. Authorities at the bank said additional branches would soon open in Lagos, Ibadan, Ilorin and Port Harcourt.
Jaiz Bank Plc has concluded plans to go national, its management has said. Speaking in Kaduna at the just concluded International Trade Fair organised by the Kaduna Chamber of Commerce, Industries, Mines and Agriculture (KADCCIMA), the Bank’s Manager in Kaduna Halilu Murtala said additional branches would soon open in Lagos, Ibadan, Ilorin and Port Harcourt. He said that this was in line with the Approval-in-Principle issued to the bank by the Central Bank of Nigeria (CBN) to go national. The bank's plan is to add at least ten more branches to the existing network of 19 branches spread across the country before the end of this year. Arrangements in fulfilment of CBN’s requirements have already been finalised, he said.
Representatives from across the Middle East and North Africa (MENA) gathered in Khartoum for the Financial Inclusion Forum: the Strategic Approach Towards Financial and Social Stability, held from 23 to 24 February. More than 350 people from 11 Arab countries participated in the forum’s events, namely Sudan, Egypt, Lebanon, Yemen, Jordan, Iraq, Tunisia, Emirates, Saudi Arabia, Qatar, and Oman. Financial inclusion was framed as a measure to support financial and social stability in the Arab region. The participants issued a series of recommendations that would better enable the banking sectors in each respective country to ensure economic financial inclusion.
East Africa could be the new frontier for Islamic finance following the launch of the first East Africa Islamic finance summit in Nairobi. Financial experts drawn from the region noted that East Africa features a potentially strong demand for Islamic services and that its growing reach promises a number of benefits. The Islamic finance industry has seen tremendous increase in recent years transcending its traditional geographic boundaries and its entrance into East Africa could revolutionize the financial sector. The summit which attracted participants and speakers from the region’s key institutions, financial regulators from Mauritius and Malaysia and experts in Islamic Finance charted the way forward for Islamic finance development in the region.
Many tout the promise of Islamic banking in Africa, but retail consumers have been hesitant in many markets. hough Muslims make up a large portion of the unbanked population in many target countries, they just weren’t coming into the fold—at least not at a significant rate. This admission may come as a surprise to anyone reading the parade of headlines about ‘unlocking the potential’ for Islamic banking in Africa. There’s been quite a few. While this is still true, the reality on the ground—literally, because we’re talking about retail here—is more complicated than that. In its recent 2016 Outlook, Moody’s Investor Services largely predicted challenging times in African banking due to sinking commodities prices, China’s slowdown and regulatory difficulties.
President Muhammadu Buhari on Thursday in Mecca, Saudi Arabia, said he welcomed an offer by the Islamic Development Bank (IDB) to organisze a financing roundtable in Abuja to mobilise more funds for investment and development of infrastructure in Nigeria. The president of the IDB, Dr Ahmed Mohammed Ali made the offer at a meeting with Buhari who is currently on an official visit to Saudi Arabia. Ali assured Buhari that the IDB would work with its traditional partners such as the Saudi Fund, the Kuwait Fund, Arab Bank for Development in Africa and the Abu Dhabi Fund, to increase the quantum of funding available to Nigeria. Buhari welcomed the plan by the IDB to fast track the take-off of the Bilingual Education Programme, aimed at integrating the Almajiri system of education with western education in Nigeria.
Nigeria's Securities and Exchange Commission and the Debt Management Office recently inaugurated a committee to oversee Nigeria's first sovereign sukuk, an Islamic financial certificate, similar to a bond in Western Finance that complies with the Islamic religious law. CNBC Africa's Onyi Sunday spoke to Samira Mensah, Associate Director at Standard & Poor's to discuss the rising demand for Islamic finance products in Africa.
Islamic banking can provide an array of financial products that would help boost an economy that's dominated by small businesses and start-ups. These small entities make a very huge contribution to greater economic growth. That said, many of Uganda's local banks regard these entities as "too small" and only want to characterise them as "start-ups" which they don't finance. Islamic Finance also provides for the Qard el-Hasan or a benevolent loan. Conventional banks provide these products in same form. However, there is a huge difference in the detail of how all this pans out. Islamic finance is the embodiment of the type of capital that will help boost a growing economy.
The Cameroonian subsidiary of the Pan African banking group Ecobank now offers to its clients the "Mudaraba saving account", which follows the rules of Islamic finance. Ecobank Cameroun thus joins on this segment Afriland First Bank, a credit institution with Cameroonian majority shareholding, which went into Islamic finance some years ago, with the Islamic current account (compte de dépôt islamique - CDI). On 20 February 2015, this Cameroonian bank officially opened a branch focused on Islamic finance, with the support of the International Company for the Development of the Private Sector. During the first year of operation of this specialised branch, Afriland First Bank was planning to collect around FCfa 3 billion, based on the 20% of the Cameroonian population of Muslim faith.
The Securities and Exchange Commission (SEC) and the Debt Management Office (DMO) have inaugurated a committee for the nation’s first sovereign Sukuk. Mr Mounir Gwarzo, SEC Director-General, who confirmed the committee’s inauguration, said it comprised staff of the commission and DMO, and would set up modalities for the first sovereign bond. He said that Sukuk had not been approved by the commission at the moment. Gwarzo said that recently, the commission was working with the DMO to ensure issuance of the bond in the second quarter of 2016. He said that the commission would support DMO in capacity building to ensure successful issuance of the bond.
Kenya is reviewing all laws and regulations governing its nascent Islamic finance industry to aid the issuance of a debut Islamic law-compliant bond, its attorney general said. The East African nation, which issued its first Eurobond in 2014, wants to expand the range of financing available for infrastructure projects like roads and power plants. The Treasury has said it is looking at the possibility of issuing the sukuk in the 2016/17 fiscal year, starting in July, but it has not offered details. Githu Muigai the review of that entire regulatory framework will be completed in a maximum of nine months. Kenya's central bank licensed two shariah-compliant banks in 2007. At least one firm has since started to offer Shariah-compliant insurance products.
Businessmen, policy makers and top government officials met at the 2016 East African Islamic Finance Summit in the Kenyan capital of Nairobi to discuss how to build a regulatory infrastructure that could enable the financial system to deliver in east Africa. There is a need for legislative changes in order to promote Islamic finance in the east African region, Mona Doshi, an expert in Islamic finance who works with the Kenyan law firm Anjarwalla and Khanna, said. She said the current legal framework that applied to Islamic banks was based on conventional banking systems, though adjustments have been made for the special nature of Islamic banks. She furthermore urged the Kenyan government to change the legal framework to take advantage of the opportunities that Islamic finance could bring to Kenya.
Hogan Lovells advised the Islamic Corporation for the Development of the Private Sector (ICD), as arranger, on the arrangement of an inaugural CFA 150 billion sukuk offering by the government of Ivory Coast. The debut sukuk is an amortising sukuk al-ijara targeted at local banks and institutional investors. The offering mirrors a successful Senegal sukuk that Hogan Lovells advised on in 2014. The team was led by the firm’s global head of Islamic finance, Rahail Ali, and partner Imran Mufti. They were assisted by debt capital markets partner Baptiste Gelpi, in, Paris and Lina Bugaighis, Dubai. Bensaid outlines the sukuk sector as very promising, referring to recent developments which have seen governments focusing more on creating a more enabling environment for sukuk issuances.
Since Parliament has finally approved Islamic Banking, an increase is expected in investment from numerous Islamic Banks. Abubaker B. Mayanja, financial economist with ABL Dunamis, anticipates an increase in Capital inflow of $600m over the medium term; driven first by international banks that already include Islamic Banking products in their offering elsewhere. The second wave will come from regional players that are already in the East African market. The third wave will come from the traditional Middle East players. The fourth wave will be an expansion of Islamic finance system; insurance (Takaful), capital markets- sukuk bonds and funds, pension management, leasing (Ijara), mortgages and investment banking.
Worried by turbulent developmental challenges facing the Northern part of Nigeria, selected Governors from the northeast, northwest and north central, representing the 19 Governors of the region, will on Sunday begin a three day meeting with top executives of Islamic Development Bank (IDB), at the bank’s headquarters in Saudi Arabia. The parley deliberated on ways of tackling challenges of Agriculture, poverty, education, maternal mortality ?and other problems most prevalent in the north than any part of Nigeria. In subsequent days, the Governors will hold different meetings with the Islamic Corporation for the Development of the Private Sector (ICD), International Islamic Trade Finance Corporation, ITFC and the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC), Islamic Research and Training Institute (IRTI), Islamic Solidarity Fund for Development (ISFD).
The Central Bank of West Africa’s CFA-franc zone (BCEAO) has signed an agreement with the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD), to help finance Small and Medium-sized Enterprises (SMEs) through a $100 million Islamic fund. The ICD will commit an initial $30 million for the SME fund and will help seek additional investors to increase the amount to $100 million while the implementation monitoring was entrusted to the BCEAO. The Central Bank also committed to supporting SMEs by providing incentives to credit institutions, as well as developing complementary leasing and venture capital instruments.
The Securities and Exchange Commission (SEC) has reached an agreement with the Debt Management Office (DMO) to issue Nigeria’s maiden sovereign Sukuk. The decision by the two government agencies to collaborate to issue the Sukuk was a major outcome of the visit of the Director General of SEC, Mounir Gwarzo to the DMO on Wednesday. The visit was a return gesture to a similar exercise by the Director General of DMO, Abraham Nwankwo, in November last year. Mr. Nwankwo revealed that issuing a sovereign Sukuk has been part of the institution’s strategic plan drawn three years ago, urging Nigerians to support SEC to building capacity in order to realize the goal of issuing Nigeria’s first sovereign Sukuk in 2016.