Africa offers exciting growth prospects. In the next few years, 7 out of the 10 fastest growing economies in the world will be in Africa. Growth drivers are becoming increasingly diverse, with the resource-based, construction and services sectors taking the lead. Islamic finance has tremendous potential to at least partly support the funding gaps in Africa while enhancing the financial inclusion rates in the region. According to reports, The Islamic banking segment in Africa has plentiful opportunities supported by Africa's large and under-served Muslim population and increasing awareness of Shari'a-compliant products. In addition, it provides government institutions an alternative financing mechanism to support the country's capital expenditure needs. The methods undertaken, united with the natural advantages offered by Africa, are likely to lead to stronger growth of the Islamic finance industry in the region.
Through a number of key derivatives, the Central Bank of Djibouti has thoroughly established Islamic finance as a key constituent of the economic system in Djibouti. The Central Bank of Djibouti is delighted to host the 3rd Annual Islamic Banking Summit: Africa (IBSA 2014). Since its launch, the conference has gone on to establish itself as the integral platform that’s supports the continuous growth of Islamic Finance in Africa. IBSA 2014 will provide a high-profile platform to specifically focus on the Opportunities and challenges that are forging the Islamic banking, finance, and investment landscape in Africa.
H.E. Ahmed Osman
Central Bank of Djibouti
Special Presidential Address by
H.E. Ismaïl Omar Guelleh
President of the Republic of Djibouti, Head of Government
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"There has been growing interest in Islamic financial services across the African continent, which has been further boosted by the support from various African regulatory and supervisory authorities and financial institutions to implement Islamic finance. Recent reports indicate that key African economies have posted exciting growth rates in recent years, second only to Asia, drawing increasing inward investment and creating a strong platform for further opportunities for economic growth and resilience. Africa is now in the spotlight as a new investment destination. The challenge, and opportunity, in Africa is to diversify funding sources and the investor base, as markets look for new investment opportunities to maximise returns on capital; and Islamic finance has a potentially major role to play in this context. Islamic finance undoubtedly offers a major opportunity for diversifying the investor base, and raising investor interest in Africa - given Africa’s strong trade links with the Arabian Gulf and increasing ties with Asia. Backed by continued strong growth projections in key markets in Africa, Islamic finance, with its link to supporting real economic activities has enormous growth potential on the continent."
"With a number of key initiatives, the Central Bank of Djibouti has already established Islamic finance as a key component of the economic system in Djibouti, and we are working towards further strengthening Islamic finance’s role in our financial system. We are once again delighted to host the Islamic Banking Summit Africa (IBSA) here in Djibouti. Since its inception last year, the event has already become an important platform for supporting the growth and development of Islamic finance in Africa. We look forward to the high profile discussions at this year’s IBSA 2013 focusing on capturing the potential for Islamic finance in Africa."
H.E. Ahmed Osman, Governor, Central Bank of Djibouti
"Islamic finance has now become a major player on the world stage and is spreading rapidly across the globe, and Africa is set to be the next growth frontier for the industry. Though global Islamic banking assets have been on a steady rise hitting USD 1.3 trillion at the end of 2012, the industry in Africa is still in its infancy stage. Recent reports indicate that by the end of this decade, Islamic banking and finance could account for up to 10% of the total banking assets in the sub-Saharan countries. The significant liquidity pool available in Islamic finance is undoubtedly a major funding source for crucial infrastructure development projects across the continent. Moreover Africa also has a significant domestic demand for Islamic finance given the continent’s huge Muslim population. As a key player in the global Islamic banking and finance industry, we are delighted to be a part of this important event which focuses on tapping the enormous growth potential for the Islamic finance industry in Africa."
Hussain AlQemzi, Chief Executive Officer, Noor Islamic Bank;
Group Chief Executive Officer, Noor Investment Group
"Africa is embracing Islamic finance on a significant scale as countries across the continent seek to tap cash-rich Middle Eastern investors to finance their large infrastructure and economic development programmes. Though Islamic finance in Africa is still in its early stages of development, the use of Islamic finance on the continent will grow further as several North and Sub-Saharan African countries are beginning to address the legal and regulatory obstacles to Islamic finance by putting in place the necessary measures. However, this is only the first step towards tapping the enormous growth potential for Islamic finance on the continent and much still needs to be done. Any economy vying to be an Islamic finance hub for the continent must focus on creating an economic environment conductive for Islamic finance to grow, invest in human capital development and develop a strong capital market infrastructure. The annual Islamic Banking Summit Africa (IBSA) plays a critical role in facilitating dialogues that will further the development of the Islamic banking and finance industry in Africa and we are delighted to be a part of this important gathering of industry leaders."
Hirsi Dirir, Chief Executive Officer, Dahabshil Bank International
"The growth potential for Islamic finance in Africa is very exciting, due to the continent’s large Muslim demographic, dynamically growing economies and improved regulations in key markets. Strong economic growth over the last few years – with the promise of even more significant growth rates in future, enhanced human resource development, and the promotion of enhanced private sector growth are some of the factors that have resulted in a spike in the number of middleclass in Africa. This trend is expected to boost consumer spending, creating further demand for retail banking products. The international Islamic finance industry is also looking for new high-growth markets to invest their funds, so many key factors
are now aligning for the Islamic banking and finance industry on the continent. International gatherings such as the annual Islamic Banking Summit Africa (IBSA) play a key role in not only highlighting the growth opportunities for the industry in Africa, but will also create a link between Africa’s Islamic finance industry and the rest of the Islamic finance world. I am
delighted to be a part of this important event."
Amman Muhammad, Chief Executive Officer, FNB Islamic Bank South Africa
What the Industry Leaders said about IBSA 2013