NIGER: Following our
in-depth exploration this week of Africa’s slow Islamic finance growth
despite its tremendous potential (See IFN Cover Story Vol 12 Issue 08:
‘Africa: The lost continent?’), the region seems to be making a bid to
detract sceptics as Niger steps up its game by revealing plans for a
sovereign Sukuk issuance – the West African republic’s first.
To be implemented in two equal phases, the government of Niger will sell
XOF150 billion (US$259.46 million) in Sukuk within the next five years,
proceeds from which will be used to fund the Republic’s development
project pipeline.
“This Sukuk program is the first of its kind in Niger. We already have a
number [of] projects that we would like to finance through this Sukuk
issuance,” confirmed Dr Amadou Baubacar Cisse, the country’s senior
minister, minister of economic planning, land management and community
development, in a statement to IFN.
Supporting this initiative is the Islamic Corporation for the Development
of the Private Sector (ICD) which formally agreed to assist the government
in setting up the Islamic bond program. By way of this agreement, the ICD
will coordinate with the relevant parties and oversee the execution of
this offering in its capacity as the transaction (first tranche of XOF75
billion (US$129.73 million))’s advisor and global coordinator.
“The ICD will do its best to see the issuance is successful and hopes
this will contribute to transform the West African Economic and Monetary
Union capital market,” affirmed its CEO, Khaled Al Aboodi.
In the grand scheme of things, Niger remains a relatively small player in
the Islamic finance universe; however, the ICD has been strongly pushing
for the development of the sector in the Republic. A major and
significant effort by the multilateral organization in realizing Niger’s
Islamic finance potential is the establishment of Banque Islamique du
Niger through its subsidiary, Tamweel Africa Holding. This proposed Sukuk
is yet another momentous step towards that direction. If materialized,
Niger will join the ranks of its regional peers such as Senegal and
Nigeria as sovereign Sukuk issuers, and solidify its position in the
Islamic finance community while providing a catalyst for the growth of
the industry.
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