IslamicFinance.de

Takaful Insurance Company has on Monday opened its doors in Somalia’s northeastern state of Puntland for the first time in over two decades, ushering in what analysts believe boost for the country’s fledgling insurance industry. Takaful Somalia head Omar Haji Hussein revealed that they would provide indemnity against a lot of losses facing business community. In support of purity and certainty, prominent cleric Sheikh Mohamud Haji Yusuf praised the opening of Takaful in Puntland. Opened in Mogadishu in December 2014 at first, Takaful insures cars, buildings and other essential properties for risks.

The Islamic Corporation for the Development of the Private Sector (ICD) will lead manage a 300 billion CFA franc ($480 million) Islamic bond programme for Ivory Coast. The programme will issue Ivory Coast's first sovereign sukuk in order to finance development projects. It will be conducted in two equal phases of 150 billion CFA francs and extend from 2015 to 2020, the ICD said in a statement. As lead manager, the ICD will structure the sukuk programme, appoint and coordinate other consultants, liaise with government officials and oversee the entire process of the offer, it said. Senegal and South Africa issued their first sukuk last year, while Niger's government plans to establish an Islamic bond programme and Nigeria has been considering an issue.

Ivory Coast has signed an agreement for Islamic-finance bond as it seeks to raise money for infrastructure. The Islamic Corp. for the Development of the Private Sector (ICD) will oversee the 300 billion-CFA franc ($490 million) sukuk. The program will be implemented in two tranches, each worth 150 billion francs, between this year and 2020. The sukuk will be an “alternative financing means for developmental” projects, Ivorian Minister Delegate to Finance Niale Kaba said, without giving details on what the funds will be used for. Ivory Coast joins a growing number of sub-Saharan African nations tapping Islamic finance debt markets seeking cash for development projects.

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Jaiz Bank on Tuesday signed a Memorandum of Understanding (MoU) to empower Small and Medium Enterprises (SMEs) in the country. The objective of this collaboration is to design a cheap, affordable and sustainable financing product that will empower SMEs to expand their business operations, Alhaji Umar Masari, Director-General, SMEDAN said. According to him, the roles of SMEDAN in the MoU is to sensitise prospective beneficiaries to the benefit of the collaboration. The bank will facilitate MSME access to Federal Government’s MSME Development Funds, among others.

Islamic Microfinance (IMF) is a novel method for human-oriented economic development and a capacity-building tool, which easily fits into the Islamic banking and finance (IBF) paradigm through social responsibility. A financial system should be able to provide financing to different segments of a given society such that, in addition to financial and economic objectives, social objectives may be served. It is imperative for IBF to fulfill such objectives alongside their business interests. Due to the complementarity between IBF and microfinance, there is a need to see further and proactive involvement of IBF and nonbanking Islamic institutions to provide IMF.

The Kenya Commercial Bank (KCB) Group has launched its Islamic banking unit as it seeks to tap into the growing demand for Islamic financial products across the East African region. The launch paves the way for the full roll-out of Shari’ah-compliant products under the proposition dubbed ‘KCB Sahl Banking’, after KCB received all the necessary regulatory approvals. In addition to the Kenyan operation, KCB Bank Tanzania is offering Islamic Banking services supported by the regulatory framework that is in place. For a start, KCB will roll out the Islamic Banking products in six of its branches as ahead of a national roll-out.

Kenya Commercials Bank (KCB) Group has launched its Islamic Banking unit as it seeks to tap into the growing demand for Islamic financial products across the East African region. KCB Group Chairman Ngeny Biwott said the move is aimed at tapping investments in the Islamic financial sector to help spur capital flows. Biwott said the launch is part of the Bank’s long term vision to diversify its product offering while riding on technology as it reaches out to more citizens across the East African region and beyond who feel left out by the conventional banking system. In addition to the Kenyan operation, KCB Bank Tanzania is offering Islamic Banking services which is well supported with the regulatory framework that is in place.

Dubai Islamic Bank (DIB) is set open operations in Kenya, in what could be the start for Gulf-based lenders scouting for growth outside their home markets. The Emirate's largest Sharia-compliant lender has started head-hunting top managers for its Nairobi unit. DIB Kenya said it is obtaining a banking licence from the Central Bank of Kenya (CBK). DIB Kenya Ltd has been issued with an approval-in principle- to operate pending completion of the licensing process. The lender is seeking qualified persons in multi-nationals and local banks in Kenya to fill some 36 top and middle level positions within the bank.

The president of the Islamic Development Bank (IDB) Group has urged the government of Ghana to join the Organization of the Islamic Cooperation (OIC) countries for the country to benefit from a number of development assistance being offered by the Group. Ghana and Liberia are the only two countries in West Africa who are still not members of the OIC. By becoming a member country, Ghana will benefit immensely from development assistance especially in the areas of infrastructure development. Although not a member country, the IDB has supported Ghana with more than US$5.5 million in grants for the completion of more than 16 different projects across the country.

An Islamic leasing firm will be launched by Egypt's Arab Investment Bank and the private sector arm of the Islamic Development Bank an in aim to provide sharia-compliant financing to small businesses. Enmaa Leasing Company for this purpose will have authorized capital of $20 million, according to a joint statement said. The ICD is discussing to debut sovereign Islamic bonds (sukuk) with Nigeria and Ivory Coast.

Nigeria and Ivory Coast have begun negotiations with the Islamic Corporation for the Development of the Private Sector (ICD) for sukuk issuance. According to the ICD head Khaled Al-Aboodi, the two countries are looking to emulate Senegal’s successful move into the market for Islamic bonds. Al-Aboodi added that they were exploring with Nigeria and Ivory Coast. The issuance by Senegal has opened up the whole region, he said. The ICD hopes to support at least two countries in 2015 to issue a sukuk. Meanwhile, Niger has signed up for a sukuk programme worth 150 billion CFA francs ($260 million), although the timing has yet to be determined.

Nigeria and Ivory Coast are looking to emulate Senegal's successful move into the market for Islamic bonds, Khaled Al-Aboodi, head of the Islamic Corporation for the Development of the Private Sector (ICD), said. The ICD helped arrange Senegal's debut 100 billion CFA francs ($208 million) Islamic bond, also known as sukuk, last June. Al-Aboodi added they were exploring with Nigeria and Ivory Coast. The issuance by Senegal has opened up the whole region, he said. The ICD hopes to support at least two countries in 2015 to issue a sukuk. Meanwhile, Niger has signed up for a sukuk programme worth 150 billion CFA francs ($260 million), although the timing has yet to be determined.

Chief Executive of Islamic Corporation for the Development of the Private Sector (ICD), Khaled Al-Aboodi, says Nigeria and Ivory Coast are looking to emulate Senegal's successful move into the market for sukuk. Senegal, meanwhile, is discussing another sukuk after the ICD helped it arranged its debut $208 million Islamic bond last June. Nigeria's neighbour Niger has signed up for a sukuk programme worth 150 billion CFA francs ($260 million), although the timing has yet to be determined. Al-Aboodi said they hoped to issue the sukuk before the end of the year, adding that the tenor depended on its structure and investor appetite.

To address the Financial Investment challenges in Mogadishu, Takaful, the first Islamic insurance company of Somalia, was opened December last year in Mogadishu, Somalia, marking a shift to protect critical assets and assist regional business practice in Somalia, which has for a long time been prone to risks without cover. The Takaful company already has successful operations in Mogadishu markets across Southern Somalia. The First Takaful and Re-Takaful Insurance partnership has already launched two regional operations in Mogadishu for the last three months.

The Federal Government of Nigeria has inaugurated an advisory council for the implementation of the Takaful insurance product in the country. he Minister of State for Finance, Ambassador Bashir Yuguda, who inaugurated the council in Abuja, stated that the move was part of the implementation of some of the reforms in the insurance sector. The minister said the inauguration was the result of the National Insurance Commission’s resolve to key into the National Financial Inclusion Strategy introduced by the Federal Government in 2012. The Chairman of the advisory body, Prof. Dawud Noibi, said the council would do all within its power to effectively discharge its mandate.

The Islamic Corporation for the Development of the Private Sector (ICD) and the African Export-Import Bank (Afreximbank) have signed an agreement under which they will cooperate in the development of the private sector in ICD member countries in Africa. However, Uganda is the only member ICD country in the East African Community. According to the agreement, ICD and Afreximbank will share information on projects and business opportunities in Africa and on participation in the arrangement of syndications or investment in funds. The two will also cooperate in structuring sukuk/debt capital market transaction opportunities, co-invest in Islamic leasing companies and support local financial institutions in Africa.

A recent study conducted by the International Monetary Fund (IMF) has explored the possibility of using Islamic finance for increased financial inclusion. Their recently published paper entitled ‘Can Islamic banking increase financial inclusion?’ concluded that there was weak and tentative evidence of Islamic banking’s positive impact on some types of inclusion. The IMF paper sais improving financial infrastructure, introducing more competition in the banking system, improving the quality of credit information, and enhancing the efficiency of the legal system would be instrumental in improving financial inclusion across the continent.

Islamic International Rating Agency (IIRA) has reaffirmed national scale credit ratings of Bank of Khartoum (BOK) at 'AA-/A-1' (Double A Minus / Single A One). Outlook on the assigned rating is 'Stable'. The fiduciary score has been assessed in the range of '70-75', reflecting adequate fiduciary standards wherein rights of various fund providers are adequately defined and protected. Ratings derive strength from the bank's strong franchise and retail presence in Sudan, with an established history of rapid assets growth since acquisition by the present shareholders and into 2014. The bank maintains sizable liquid reserves, though liquidity management is constrained by systemic concerns.

A two days specialized Takaful workshop arranged for Insurance and risk management professionals by Al-Huda, Centre of Islamic Banking & Economics (CIBE) took place in Dar es Salaam. At the workshop, Mr. Paul J. Ngwembe, Director Legal Enforcement, of Tanzania Insurance Regulatory Authority (TIRA) disclosed that TIRA is at the final stage of drafting Takaful Regulations with a view to setting up a regulatory mechanism of Takaful in the country. He added that TIRA encourages all stake-holders to attend such workshops so as to acquire the requisite know-how of this system. Mr. Zubair Mughal, the Chief Executive Officer of Al-Huda CIBE said that AlHuda CIBE has a long term vision for the development of Islamic Banking and finance industry in Tanzania and other African countries.

According to a new report by McKinsey Global Institute, Morocco is the most indebted among Arab and African countries. The kingdom’s debt-to-GDP ratio stands at 136 % or an increase by 20 percentage points of GDP. The analysis focuses on the debt of the “real economy”: governments, nonfinancial corporations, and households. The report has revealed that debt-to- GDP ratios have increased in all 22 advanced economies reviewed by the study. Morocco comes ahead of both Egypt and Saudi Arabia which have actually succeeded in reducing their debts. The report has also found that global debt has grown by $57 trillion or 17 percentage points of GDP since 2007, to stand at $199 trillion, equivalent to 286% of GDP.