African markets are starting to open to Shariah finance, primarily through governments’ debut sales of sovereign sukuk (Shariah bonds).
Regimes across Africa are using Shariah bonds as a way to attract cash-rich Islamic investors, with South Africa making a $500 million issue in September and Senegal raising 100 billion CFA francs ($208 million) in June.
The Tunisian government could soon follow with a dollar-denominated deal that it hopes to place by year-end; Kenya is considering a Shariah bond issue.
Nigeria’s Osun State made a small local-currency Shariah bond issue last year and Gambia has been issuing short-term Islamic paper in its own currency for years…
