Africa

#Uganda: 'Develop Islamic Products'

In Uganda the outgoing minister of Gender and Social Development has advised commercial banks to urgently develop products for Islamic Banking. Muruli Mukasa said the parliament passed the law and the all the communities in Uganda have accepted this model of banking. The Financial Institutions Bill 2015 paved way for the introduction of three new products: Islamic Banking, Bancassurance and Agency Banking. But Bank of Uganda still has to issue regulations that will guide commercial banks on how to manage the new form of banking.

Commercial banks to issue sharia compliant #bonds

Islamic banking in #Uganda will broaden government financing options and will ease its borrowing from the private sector, through the Sukuk bonds. According to the managing director of ABL Dunamis, Abubaker Mayanja, Sukuk funding will be available for government infrastructure projects; as long as they meet sharia requirements and the funds are invested directly into the project. He said the bonds will be issued by all commercial banks, regardless of whether they are Muslim founded or not.

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#Nigeria looks to #sukuk for infrastructure funding needs

Nigeria hopes to use a proposed Sukuk issuance programme to help fund big infrastructure needs. The country plans to borrow as much as $10 bn from debt markets to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira. Secretary of finance Alhaji Mahmoud Isa-Dutse said the federal government is working on a sovereign sukuk with details expected within the year. In 2013, Nigeria's Osun State issued 10 bn naira ($62 mn) of sukuk, but no other sukuk transactions have followed.

#Uganda: Islamic Banking Will Attract More Money From Arab World - Expert

In Uganda the first Islamic Banking and Finance (IBF) conference was held last week. Prof. Ashraf Bin Hashim said in Malaysia, most of the Islamic banks are subsidiaries to conventional banks; therefore, they are not looked at as competitors. They are developing themselves together. IBF will widen the pool of investors and Islamic donor streams to Uganda. Instead of having only conventional investors, there will be several potential Islamic investors in the country.

#Nigeria looks to #sukuk for infrastructure funding needs

Nigeria hopes to use a proposed Sukuk issuance programme to help fund big infrastructure needs. The country plans to borrow as much as $10 bn from debt markets to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira. Secretary of finance Alhaji Mahmoud Isa-Dutse said the federal government is working on a sovereign sukuk with details expected within the year. In 2013, Nigeria's Osun State issued 10 bn naira ($62 mn) of sukuk, but no other sukuk transactions have followed.

IDB Group and World Bank Group Produce Global Report on Islamic Finance

The Islamic Development Bank (IDB) Group and the World Bank Group have jointly produced a global report on Islamic finance. The full report, titled 'Islamic Finance: A Catalyst for Shared Prosperity?', will be launched during the World Bank/IMF Annual Meeting later this year. Some of the key recommendations include having adequate policy interventions and financial infrastructure to enable Islamic finance serve as a catalyst for poverty alleviation and inclusive prosperity.

#Uganda: Islamic Banking Agitators Want Four Laws Reviewed

The Ugandan government reviewed the Financial Institutions Act 2004, that allowed the introduction of both Islamic and Agency banking. However, Islamic finance agitators still believe that without the revision of the Central Bank Act, the Hire Purchase Act, The Stamp Duty Act and the Accounting Principles Act, it will be difficult for Islamic finance to deepen in Uganda. Sulaiman Lujja from the Islamic University in Uganda says Central Banks have to develop, adopt and adapt various policies and prudential guidelines.

Jaiz Bank secures licence to deliver #Islamicbanking

The Central Bank of Nigeria (CBN) has granted Jaiz Bank national license to operate Islamic non-interest banking in all the states of the federation. Chairman of Jaiz Bank Alhaji Umaru Abdul Mutallab said the bank intends to roll out in all the 36 states and the Federal Capital Territory (FCT) in two or three months times. Alhaji Sa’ad Abubarkar III, the Sultan of all Muslims in Nigeria, congratulated and warned that Jaiz bank must conform with all rules and regulations of Islam.

Islamic #insurance guarantees financial security

The federal government has urged Nigerians to embrace Islamic insurance as it can guarantee economic security in times of economic uncertainties. At the official launch of the book Understanding Takaful, the minister of Education, Malam Adamu Adamu, described takaful insurance as a safety net for the community. The author of the book, Malam Zubairu Sulaiman Darazo, identified the interest rates inherent in conventional financial institutions as responsible for the low level of insurance penetration in Northern Nigeria.

CBN unveils guidelines for non-interest #microfinance banks

The Central Bank of Nigeria (CBN) released guidelines on the regulation and supervision of non-interest microfinance banks (MFBs) in the country. In the document the banking sector regulator placed the NIMFBs into three categories namely Unit, State and National. A Unit NIMFB is required to have a minimum paid-up capital of N20 mn, a State NIMFB is required N100 mn, while a National NIMFB required N2 bn.

La #FinanceIslamique: une opportunité de financement pour le Pse

La Finance Islamique, c’est plus de $2.000 ms et 35% de taux de croissance. Une manne financière qui doit être saisie par le gouvernement du Sénégal pour le financement du Plan Sénégal émergent (Pse). Oulimata Diop, Directrice de la Monnaie et du Crédit au Ministère de l’Economie des Finances, a dit l'financement du Pse qui doit être pris en charge par le secteur privé à hauteur de 60%, c’est pourquoi le gouvernement compte mettre en place des stratégies pour capter l’investissement Islamique.

Zakat to promote equitable redistribution of wealth and foster a sense of solidarity among the Muslims

On the annual distribution of Zakat by the Elders Consultative Forum of Supreme Council for Shariah in #Nigeria Abiola Ajimobi called on the Muslims to address the effective, efficient collection and management of Zakat fund. One of the beneficiaries of the Zakat distribution, Ridwan Olalekan, who spoke on behalf of others, promised to make judicious use of the items.

NIC to introduce Islamic based insurance program

In Ghana the National Insurance Commission (NIC) may soon introduce Islamic based insurance known as Takaful insurance. The Commissioner of Insurance Lydia Lariba Bawa said in places where the Muslim population is higher like Gambia and Nigeria, Takaful insurance is gaining grounds. There is a Muslim community in Ghana that can be adressed by introducing the Takaful insurance. This move will contribute to the Commission’s effort to increase insurance penetration in the country.

SEC Approves Lotus Halal Fixed Income Fund

Following the approval of the Lotus Halal Fixed Income Fund offer by the Securities and Exchange Commission (SEC), Lotus Capital Limited held the signing ceremony in respect of the Offer on April 14, 2016. The offer has an initial subscription size of N1,000,000,000.00 consisting of 1,000,000 units at N1,000 per unit. The Fund will be launched upon receipt of final approval from SEC. The primary objective of the fund is to generate returns from investments in Shari’ah compliant fixed income securities and contracts, while ensuring capital preservation. A minimum investment of N5,000 is required.

Banking: Dubai Islamic Bank aims to open in Kenya

Dubai Islamic Bank (DIB) plans to be operating in Kenya before the end of 2016, despite the Kenyan authorities' moratorium on issuing new banking licences. Kenyan banks have come under closer scrutiny from the regulator because of increasing bad debts, prompting officials and analysts to conclude the sector is ripe for consolidation. Three medium-sized and small banks have been taken over by the regulator since August last year. DIB had been in talks with the regulator before the moratorium was placed on the licensing of new commercial banks last November, meaning it would not affect a decision on its licence.

Islamic Development Bank to fund education sector projects in Benin

The Islamic Development Bank (BID) has given Benin 216.4 million U.S. dollars to support development projects in the higher education sector and an integrated micro-finance program. The first part of the BID aid of about 166.4 million dollars will be spent on funding development projects in the higher education sector. The other 50 million dollars will support the integrated micro-finance program. The program aims to contribute to the improvement of living conditions for rural communities in Benin. It will help to increase access to funding for small scale traders and reinforce capacities of micro-finance institutions, among others. The latest aid brings BID’s total funding to Benin to around 824 million dollars.

Islamic Banks seek Mauritanian depositors

Mauritania is turning to Islamic finance to modernise its banking sector, trying to raise the number of people with accounts from its meagre levels today and in turn increase liquidity so banks can lend more to companies. Many of the Islamic republic’s citizens are uncomfortable with western banking, opting for informal banking collectives or just “keeping money under the bed”, says one local banking executive. Dieng Adama Boubou, director of banking supervision at the Mauritanian central bank, says that the goal was to increase the number of people with bank accounts from 10 per cent today to 25 per cent by 2018, partly by promoting Islamic banking.

Banking on faith

A report in one of the dailies suggesting that Islamic banking contributed to the collapse of Chase Bank is based on unfounded information. The facts as emphasised by Central Bank of Kenya Governor Patrick Njoroge are clear; that the underlying reason for the closure of the bank was under-reported insider lending by the directors and irresponsible use of social media, which accelerated the massive liquidity problems. Chase Bank is not the first bank to collapse and several others, which had no dealing with Islamic banking, have gone under. It is therefore insensitive to blame the collapse of Chase Bank on the Islamic banking system, which has proved to be an alternative and viable finance system.

Group To Create Jobs In Agriculture Through Interest-free Loans

A group under the auspices of Adamawa State chapter of the National Council of Muslim Youth Organisations (NACOMYO) has resolved to pursue wealth creation and provide job opportunities for members of Islamic Youth organisations through Agriculture as a business. In a communique, the association further stated that the move was in line with the policy thrust of the current Buhari Administration in collaborating with NASR of the Central Bank of Nigeria, JAIZ Bank and Standard Micro-Finance Bank. The association produced a 10 point recommendation geared towards developing a framework which will see to the Socio-economic Development of the Muslim Umma in Adamawa State.

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