Africa: Fast-Tracking Growth in the Next Frontier for Islamic finance

• More than 250 Islamic finance industry leaders attend the high profile opening of the International Forum on Islamic Finance (IFIF Sudan 2014) in Khartoum, Sudan
• H.E. Hassabo Mohamed Abdul-Rahman, Vice President of the Republic of Sudan, delivers keynote address

Khartoum: 9th December 2014: The inaugural International Forum on Islamic Finance (IFIF Sudan 2014), which opened today at the Al Salam Rotana, Khartoum, saw more than 250 leaders in the international Islamic banking and finance industry engage in high profile discussions that focused on ‘Fast-Tracking the Accessibility of Islamic Finance in Africa’.
 
The two day event, held under the official patronage of the Ministry of Finance & National Economy, and the Central Bank of Sudan and in strategic partnership with the Bank of Khartoum and Dubai Islamic Bank, featured opening addresses by H.E. Elgaili Mohamed Elbashir, Deputy Governor, Central Bank of Sudan; and H.E. Badr El-Din Mahmoud Abbas, Minister of Finance and National Economy, Republic of the Sudan.

This high-powered opening plenary session was concluded by a keynote speech from H.E. Hassabo Mohamed Abdul-Rahman, Vice President of the Republic of Sudan, who addressed how Islamic finance can be a catalyst to further boost economic development in Africa.
 
Another key highlight of IFIF Sudan 2014 was the international keynote session that provided insights on ensuring Africa is ready to capitalise on the opportunities emerging as the next frontier of growth for Islamic finance. These international keynote addresses were delivered by H.E. Dr. Sabir Mohamed Hassan, (Former) Governor, Central Bank of Sudan; Professor Datuk Rifaat Ahmed Abdel Karim, Chief Executive Officer, International Islamic Liquidity Management Corporation; and Suwareh Darbo, OIC/Principal Country Economist at the African Development Bank.
 
IFIF Sudan 2014 also featured the high-profile CEO and Industry Leaders’ Power Debate that was moderated by Ashar Nazim, Partner, Head of Global Islamic Banking Centre at EY. The session analyzed practical strategies to fast-track the accessibility and success of Islamic finance in key markets on the African continent. The debate featured a high-powered interactive panel including Fadi Salim Al Faqih, Chief Executive Officer, Bank of Khartoum; Abdelilah Belatik, Secretary General of the General Council for Islamic Banks and Financial Institutions (CIBAFI); Moawia Ahmed El Amin, Chief Executive Officer, Qatar Islamic Bank – Sudan; Basheer Oshodi (PhD), Group Head, Non-Interest Banking, Sterling Bank Plc, Nigeria; and Dr. El-Tigani El-Tayeb, Former Finance Minister and Economist at the IMF.

Commenting on the opportunity and challenges for Islamic finance in Africa, Fadi Salim Al Faqih, Chief Executive Officer of the Bank of Khartoum said that “Islamic banking and finance is already a major strength of Sudan with the emergence of significant local and international Islamic banking players serving many key sectors of the economy, coupled with a developing regulatory infrastructure supportive of the further development of Islamic finance in the country. Although on the African continent as a whole, Islamic finance markets are still in their infancy nevertheless the respective Governments have taken forward steps to ensure a solid foundation upon which the industry can grow. Tremendous progress has been made on Sukuk, which have dominated the emerging African market for Islamic finance.”

Mr. Al Faqih also noted that “The near future will provide new opportunities for industry players to contribute to broader sectors of the economy. Sudan is well positioned to build on its current capabilities and harness the full potential of Islamic finance as a catalyst to boost Foreign Direct Investment, attract Shari’ah-compliant capital to infrastructure development projects, improve trade finance flows, and support the financing requirements of the strategically important Micro, Small & Medium Enterprises (MSMEs) segment.”
 
“The Bank of Khartoum, being the largest and oldest financial institution in Sudan is delighted to strategically support the first-ever International Forum on Islamic Finance (IFIF Sudan 2014), and this high-profile event has provided the perfect opportunity for international industry leaders to gather in Sudan to address building capabilities to rapidly roll out Islamic finance to key segments and markets in Sudan and across the African continent”, he concluded.
 
Speaking to the media present at the event, David McLean, Chief Executive of the International Forum on Islamic Finance (IFIF Sudan 2014), noted that “Recent reports indicate that over 65% of the total population on the African continent are under-banked and that banking penetration stands at 60% in urban areas and less that 20% in the rural areas. This indicates a promising future for Islamic finance in Africa. However to tap into this tremendous potential the Islamic finance players active on the continent must overcome key challenges which include strengthening legal and regulatory frameworks and building greater awareness of the Islamic finance value proposition in the majority of consumers.”

The International Forum on Islamic Finance (IFIF Sudan 2014) continues on Wednesday the 10th December 2014, where key issues to be addressed include overcoming challenges to inward investments and trade; and expanding the success of mobile money to advance Islamic finance in Africa.