IslamicFinance.de

Banc ABC’s Head of co-operate Services, Zulfikar Chando has pointed out that Islamic banking would fuel investment and spending which will in turn support national economic development. The demand for this service with no interest rates shows the need to implement it and make it accesible, he added. BancABC also announced that for the upcoming annual pilgrimage to Mecca later this year in October, the bank has prepared special Visa cards at all their branches to ease the preparation of flight, accommodation and other details of the Holy trip. The service ensures ease and safety while travelling to any destination world wide, Zulfikar Chando explained that clients can choose between prepaid BancABC VISA cash card and BancABC Visa travel money, specifically made for travelling.

Jaiz Bank yesterday donated relief materials to the Governor of Borno State for onward distribution to victims of the Boko Haram insurgency. While presenting the items, Dr. Abdulmutallab expressed his sympathy with the people of the state over their travails and donated rice, spaghetti and textile materials to cushion their sufferings. In his remarks, governor Shettima thanked the bank for the donation and pledged to judiciously utilise the items. The governor promised to partner with the bank towards harnessing the full potentials of the state. In order to to further demonstrate his support, the governor also promised to open a personal savings account with the bank.

The Osun State government in southwestern Nigeria is planning to raise a sukuk bond worth 10 billion Nigerian nairas (some $62 million) from the capital market to fund infrastructural development. The state is awaiting final approval from the Security and Exchange Commission (SEC). The seven-year bond would be issued through a book-building process, which would earn returns for sukuk holders through a semi-annually paid rent structure called the Ijara. A local credit ratings agency, Agusto and Co, has given the note – to be listed on the Nigerian Stock Exchange – an A rating. The move as part of a 60 billion naira debt-raising program by Osun State, which started last year. The funds will be used to finance construction of education projects, among other development initiatives.

The shift in global banking is not a trend, and the challenge for all of us is to bridge the gap in financial practice and seize the opportunities that lie ahead, bringing ethics back into finance.

Thomson Reuters and Abu Dhabi Islamic Bank (ADIB) are partnering to launch the world’s first Ethical Finance Innovation Challenge and Awards (EFICA). In the dawn of a new economic world, these awards are designed to inspire and recognise a fresh way of thinking by promoting some of the most dynamic, innovative ideas and solutions around integrity and growth.

Sources in the Ministry of Finance and Economic Affairs and the Tanzania Insurance Regulatory Authority (TIRA) confirmed that relevant authorities were working on the possibility of introducing Islamic insurance. It is still on preliminary stages but the process is reportedly going on well. Introduction of Takaful will be another milestone in development of the country's financial industry following its liberalisation over 20 years ago, through the Banking and Financial Institutions Act of 1992. The insurance industry is regulated by the Insurance Act, 2009. The latest TIRA market report shows that Tanzania insurance industry grew by 20.0 per cent to 344.7bn/- in 2011, from 287bn/- in 2010.

Nigerian Jaiz Bank has increased its branch network to ten, with the commissioning of its Katsina branch. The bank commenced operations with three branches in Abuja, Kaduna and Kano states on January 6, 2012, after it received licence from the Central Bank of Nigeria on November 11, 2011, to operate as a non-interest bank. The bank now has branches in Gombe, Maiduguri, Katsina, and two branches in Kano. The bank has also added two branches in Abuja, the Federal Capital Territory. The branches are located at the National Assembly and Wuse District. According to the chairman, board of directors of Jaiz Bank, Alhaji Umaru Mutallab, there are plans to open additional branches in Bauchi, Zamfara, Sokoto, Kebbi and Jigawa states and at the Bayero University Kano, Federal Secretariat Abuja and Zaria, before the end of year 2013.

The President of the Republic of Suan, Field Marshal Omer Al-Bashir agreed to sell al-Neilain Bank to expatriates, confirming the state's interest and keenness to provide all facilities for expatriates to employ their money inside the country in support of the national economy. Al-Bashir noted that the economic situation in the country is moving to the better, despite all the talk about the large external migration. He said that gold native mining and extensive migration from African and Asian countries to Sudan, demonstrate that there is an economic activity in a way to improve the situation, hoping that expatriates will pay attention to investing their money in Sudan to support the economy. Al-Bashir said that the state supports livestock development by focusing on the export of meat rather than the export of live cattle, by building a modern slaughterhouse in this regard to take full advantage of the slaughtered animals.

Gulf African Bank has tied its public listing plans to the exit of International Finance Corporation (IFC) from its shareholders’ roll. IFC bought a 15 per cent stake in the bank for $5 million (Sh430 million) last year, which valued it at about $33.33 million (Sh2.86 billion) at the time. Chief executive of Gulf Bank Abdalla Abdulkhalik said IFC plans to exit through a public share sale. The IPO is also expected to raise additional capital for the lender. However, no timeframe has been set. Going by the IFC’s investment horizon the public could get a chance to buy into the lender by 2017. IFC’s policy is to invest in firms for between five and seven years. Gulf Bank's total assets stood at Sh13.56 billion as at the end of 2012, up from Sh5 billion as at the end of 2008.

South African power utility Eskom will look at new funding opportunities such as Islamic bonds to finance its capacity expansion projects. A lower than hoped for rise in power rates has left state-owned Eskom with an expected revenue gap of 225 billion rand ($22 billion) over the next five years. The associated decrease in projected revenues will materially affect operations, including ability to obtain funding for future capacity expansión. Funding for the next 12 to 18 months would be sourced from issuance of domestic and international bonds, export credit agency-backed financing, development finance institutions and the domestic commercial paper market. New opportunities from alternative funding sources and products such as Islamic funding (sukuk), preference share-type funding and project-based funding will also be explored.

Over the past three years, the Hult Prize has taken on some of the planet's toughest challenges. These have included Education, Energy, Housing, and Water. For the 2013 Prize, President Clinton has personally selected the challenge: the Global Food Crisis.

A detailed case study, narrated by President Bill Clinton, will be released to all selected participants in early January to set the framework for this year's challenge. Competitors will then be asked to develop social enterprises that answer the President's Challenge.

The global food crisis can be approached through multiple lenses, such as: distribution, manufacturing, production, technology and many others. Each, represents an opportunity for innovation. Nearly 1 Billion people in the World are Hungry, that is over 1 out of every 4 children. Ironically, our global economy produces enough food each year to feed everyone, however more than one-third of the food generated for human consumption continues to be lost or wasted.

The International Finance Corporation (IFC) – the investment arm of the World Bank – has acquired 15 percent shareholding in Gulf African Bank, Kenya's Islamic bank, for $5 million (Sh425 million). In addition, a further $3 million (Sh255 million) trade guarantee has been opened for Gulf African Bank under IFC’s global trade finance programme. Gulf African Bank said it would use IFC’s financing to boost finance for retail and corporate customers and develop programmes for women entrepreneurs while also extending services to SMEs. In addition to the IFC partnership, the bank is undertaking a rights issue to increase its capital base by an additional Sh850 million.

Standard Chartered Plc will start offering Islamic banking in Kenya as a springboard into the rest of Africa, Wasim Saifi, its global head of Islamic consumer banking said. Moreover, it may expand services in Indonesia. He said the bank would offer the services through its Islamic banking brand, Standard Chartered Saadiq, targeting the country’s official Muslim population of 4 million people, as well as non-Muslims. The new products will first be launched in Kenya, then in other countries in east Africa and west Africa, as well as further afield. Especially Indonesia is interesting to the bank because Islamic finance is set to triple or quadruple in the next five-ten years in the country. Standard Chartered currently offers Islamic banking in Indonesia through associate Bank Permata

The "International Islamic Microfinance Seminar" was held in Abuja, Nigeria on July 1-2, 2013. This event focused on Nigeria’s Islamic microfinance and banking industry including topics relating developing and facilitating business models; poverty alleviation; financial inclusion; accounting and auditing standards; the regulatory and supervisory framework; technology; and opportunities in agriculture, livestock, renewable energy, microenterprises and small and medium-sized enterprises. Green Oasis Associates Limited (GOAL), a Nigeria-based international consulting firm, organized the seminar.

The Nigerian Stock Exchange (NSE) has announced that an Islamic screening exercise has been carried out on the 15 companies in the NSE Lotus Islamic Index (NSE LII) and other Shari'ah compliant companies using the 2012 year-end financial statements. The result saw some stocks likely to fail the screening exercise. The NSE said possible replacements will be made to the stocks that are due to exit the index. Some of the stocks being watched for replacement are Japaul Oil & Maritime Service Plc, Honeywell Flourmills Plc and Dangote Flour Plc. The 15 companies that will make the NSE LII list and market capitalizations will be made public before the end of the month, and before the index rebasing date of July 1, 2013.

The Islamic Financial Services Board (IFSB) is organising its first Seminar focusing on the Islamic financial services in Africa which will be held on 6 to 7 September in Mauritius, hosted by the Bank of Mauritius. This Seminar is targeted at regulatory authorities and financial institutions from African nations interested in developing or exploring Islamic Finance. Numerous experts of Islamic finance will participate. The IFSB is also organising a Pre Seminar Workshop on Introduction to Islamic Finance and the IFSB Standards on 5 September 2012, prior to the Seminar, which is open to all participants attending the Seminar. The Workshop aims to provide them with a better understanding of Islamic financial services and the IFSB activities.

Ghana and the Islamic Development Bank (IDB) have joined the African Legal Support Facility (ALSF). Ghana is now the 48th country to join the facility and the IDB the sixth international organization to become a member. The membership of the IDB shall be followed by the approval of an IDB financial contribution to the Facility of up to US$ 1 million, according to ALSF Director Stephen Karangizi. An independent body hosted by the African Development Bank (AfDB), the ALSF supports the AfDB's Regional Member Countries in the negotiation of complex commercial transactions and litigation brought against them by vulture funds. It also provides capacity building. The ALSF's goal is to ensure fair and balanced negotiations.

Barring any unforeseen circumstance, Osun State will issue Nigeria's first Sukuk bond of N10 billion before the end of July. The planned 7-year paper would be part of a N60 billion debt raising programme of the state which started last year. The Osun bond will be issued through a book-building process which will earn a return for sukuk holders via a semi-annually paid rent structure called the Ijara. The government is targeting local pension funds and international investors on the bond. Local credit rating agency Agusto & Co has assigned an A rating to the note, which will be listed on the Nigerian Stock Exchange. Osun is waiting for the Securities and Exchange Commission’s (SEC’s) approval to start marketing the bond. The funds will be used to finance the construction of education projects.

The latest World Bank review of policies and institutions in Sub-Saharan Africa shows an overall stable environment for growth and poverty reduction despite divergence across countries. The review is part of the annual World Bank Country Policy and Institutional Assessment (CPIA) that rates the performance of poor countries. The scores of 11 countries rose by 0.1 points or more, reflecting a strengthened policy agenda, and the indexes of another 12 countries declined by at least 0.1 points. Cape Verde and Kenya had the highest scores. The upward trend of scores assessing social reforms shows that they are taking hold in Sub-Saharan Africa. Governance scores continue to lag all other areas assessed by the CPIA, reflecting the deep-rooted challenges facing African countries in this important area.

Nigeria and other African countries need to tap into opportunities provided by Islamic financing to fund infrastructure development on the continent, Sanusi Lamido Sanusi, the governor of the Central Bank of Nigeria has said. He stated this yesterday in Abuja at a conference on “Infrastructure Development through Alternative Funding (Islamic Finance) in Africa”. He said Sukuk, if well developed, could serve as a financing option for governments as is already evident in countries like Saudi Arabia and United Arab Emirates. The acting managing director of Jaiz Bank, Usman Hassan, urged the federal government to conclude the development of the framework for the issuance of Sukuk in the country. This is necessary because with Sukuk you cannot have failed projects and funds cannot be diverted.

In Sudan, Sharia-compliant microfinance is the government-mandated rule, not the exception. That’s because the country’s banking system went fully Islamic in the 1980s, legislating Sharia principles. In 2007, the Central Bank of Sudan established a dedicated microfinance unit to foster a conducive policy environment, a regulatory framework, and the intellectual, human, and financial capital to provide those services effectively. Moreover, the Central Bank introduced various Shariah-compliant products, such as musharaka, mudaraba, salam financing and istisna, to meet specific needs of potential customers. Banks were required to channel at least 12% of their total loan portfolio toward microfinance clients. Out of this have emerged several exciting programs that are offering early evidence that the country’s strategy is paying off.