Islamic Finance in Africa: Challenges Ahead

Abstract

The challenges facing the growth of Islamic fi nance in Africa are manifold. Some of these challenges are related to the sustainability of the present economic growth; thus, any investment—whether Islamic or otherwise— is attracted by economic realities on the ground. The second type of chal- lenges is related to the outstanding issues in Islamic fi nance itself and that would continue to be present in the African context as well. The last category will be those peculiar problems that need to be addressed in the implementation of Islamic fi nance in the African environment. While addressing the issue of exceptional economic growth in Africa and the prospect of Islamic fi nance, we should keep in mind that one of the key challenges that might affect any attempt to attract Islamic fi nance invest- ment to develop the continent’s vast resources, its infrastructure, agri- culture, and to meet the demands of a fast growing consumer sector, particularly their demands for inclusive fi nancial services, is the issue of perception with its far-reaching implications. PERCEPTION