April 10

Slow but Steady Growth of Sukuk in Africa

By Mushtak Parker

Africa’s three largest economies – Nigeria, South Africa and Egypt – all raised sizeable public debt funding through three sukuk issuances in 2023/24, totalling an aggregate equivalent of $3.045bn.

Sukuk is an Islamic debt instrument wherein the finance provider has ownership of real assets and earns a return sourced from those assets. This contrasts with conventional bonds where the investor has a debt instrument earning the return predominately via the payment of interest (riba). Riba or excess is not allowed under sharia law.

Photo courtesy of MegaPixl – No attribution required.

Source: African Business (link opens in a new window)

financial inclusion, Islamic finance, sustainable finance