Islamic banking strides across Africa
Friday, June 1 2007
Islamic banking, already a significant factor around the world, is now making substantial inroads in Africa. New sharia compliant banks have opened in Kenya, Nigeria and South Africa and more are on the way, says Neil Ford.
Islamic banking has become increasingly popular across the Middle East, as both local and international banks begin to offer banking products that comply with the main tenets of the Islamic faith.
It is also becoming increasingly popular in non-Islamic countries, such as the UK, as demand increases from Muslim residents and others who are attracted by what they perceive as a form of ethical banking.
Now, as a result of the creation of new specialist banks in several parts of the African continent, one of the biggest trends in international banks in recent years has finally hit African shores.
Such banks and products are likely to be most popular in the parts of Africa with the highest concentration of Muslims: North Africa, large parts of West Africa and down the eastern seaboard. Countries with significant populations of Muslim businesspersons, such as South Africa, should also prove to be attractive markets as the concept becomes better known. Financial products that are compliant with sharia law do not charge or indeed pay interest.
