Senegal is banking on Islamic finance to improve access to credit in rural areas

Mar 08, 2013

Prime minister of Senegal Abdoul Mbaye revealed that the government will support the national development of Islamic finance in order to improve access to credit and promote economic and social development in the country.

Prime minister of Senegal Abdoul Mbaye revealed that the government will support the national development of Islamic finance in order to improve access to credit and promote economic and social development in the country.

He made this statement at the opening of the third International Forum on Islamic finance, which was held in Dakar this week.

The government is hoping to reduce the lack of finance products adapted to the needs of rural producers, companies in basic social sectors and small and medium-sized enterprises (SMEs).

In a state of infancy, Islamic finance is not yet fully integrated into the financial legislation of Senegal - a situation that should soon evolve, according to the prime minister:

"Our country wants an Islamic finance industry to emerge, through an appropriate legal and regulatory environment," he said, quoted by the newspaper Le Soleil.

Abdoul Mbaye added that Islamic finance will fit into the framework of an "ambitious" economic and social program[me] which should generate investment opportunities in the sectors of agro-industry, rural infrastructure and income-generating activities for youth and women.

Senegal is also planning to launch an Islamic bond (Sukuk) worth €163 million.ADNFCR-2976-ID-801553266-ADNFCR