Bank launches first Islamic window in Cameroon
Afriland First Bank is targeting the large Muslim population in the country.Afriland First Bank has launched the first Islamic window in Cameroon.
The lender developed the Islamic window with assistance from the Islamic Corporation for the Development of the Private Sector (ICD), a unit of the Jeddah-based Islamic Development Bank, Reuters reports.
Over 20 per cent of the country’s population is Muslim and an increasing number of locals are converting to Islam, as suggested by an increase in the number of mosques around Douala. However, the Islamic finance market remains largely untapped.
Afriland will offer a range of common types of Islamic financing contracts, the lender said in a statement on its website.
These include murabaha, musharaka, mudaraba and ijara, contracts which follow religious principles including a ban on interest and pure monetary speculation.
The new window should contribute to boost financial inclusion in Cameroon, where less than 20 per cent of males and 10 per cent of females have accounts with formal financial institutions, according to World Bank data.