Diversification of Sukuk into Africa

As previously reported low oil prices, whilst they last, have reduced planning and new issuances and volume of sukuk globally. At the same time other countries with economies less dependent on oil and petroleum resources have adopted sukuk as a form of sovereign financing. The Ivory Coast (a leading cocoa producer) is the most recent example, with the assistance of the Islamic Corporation for the Development of the Private Sector (ICD) which acted as lead arranger, issuing a sukuk in the national currency (the CFA) in the amount of 150 billion (USD 252 m). It is a 5 year ijara sukuk. Other African countries that have issued sukuk in the last two years include Gambia, Sudan, Senegal and South Africa; several North African countries are likely to issue sukuk in the near term, according to Zineb Bensaid, a senior consultant at an Islamic markets consultancy based in Brussels.

 

 

Information from: Natasha Mellersh, African Law and Business ‘Ivory Coast issues sukuk’ 4 February 2016, and other financial reporting.

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