Recent innovations in Islamic finance have changed the dynamics of the Islamic finance industry. Specially in the area of bonds and securities the use of Sukuk or Islamic securities have become increasingly popular in the last few years, both as a means of raising government finance through sovereign issues, and as a way of companies obtaining funding through the offer of corporate sukuk. Beginning modestly in 2000 with a total of three Sukuk issuance worth $336 millions, the total global Islamic bond issuance is expected to surge to $175 billion in 2015, up from $110 in 2014, and is projected to hit $250 billion by 2020, while the total global outstanding Sukuk, which is currently at $241 billion, is also expected to grow to $907 billion by 2020. Sukuk has developed as one of the most significant mechanisms for raising finance in the international capital markets through Islamically acceptable structures. Multinational corporations, sovereign bodies, state corporations and financial institutions use international Sukuk issuance as an alternative to syndicated financing.

Sukuk markets in Africa are still very limited with Sukuk issuance in very few countries, such as Nigeria, Sudan, Senegal, The Gambia, while others such as Egypt and Tunisia have announced plans to further develop domestic Sukuk markets in the future. The Program, among others.

  1. Promotes the concept of Sukuk to African governments, investors, product originators and other interested parties.

  2. Engages with Governments and development banks about supporting appropriate project development and the growth of the Sukuk market in Africa.

  3. Informs the market by promoting best practice, convening industry forums and developing template model.

  4. Supports interested African Governments and private sector entities to build their capacity to undertake the necessary functions to develop and sustain Sukuk markets in their respective countries.