African governments are looking to sharia-compliant financial markets to attract investment from the Middle East. The trend is just gathering strength, and experts expect more funds to flow into infrastructure and other major projects.
The latest wave of finance to reach African corporations and governments is coming from the Middle East, with an increasingly large sharia-compliant component.
Leaning towards a dollar-denominated, five-year sukuk, using an ijara structure. South Africa is expected to launch its debut Islamic bond issue during the first quarter of 2014 as it seeks to diversify its financing sources, the chief executive of Al Baraka Banking Group told Reuters on Monday.
"There is no mandate yet but we're been advising the government. We expect the sukuk to be launched during the first three months next year," Adnan Ahmed Yousif said on the sidelines of the Global Islamic Economy Summit in Dubai.