IN BRIEF ON ISLAMIC FINANCE IN AFRICA.

In late November 2014 Morocco approved a finance bill that will allow the establishment of Islamic banks and permit private companies to issue Islamic debt. The bill was passed unanimously. The opportunity to set up Islamic banks will be open to both local and foreign organisations, although it is believed foreign organisations may be actively encouraged to partner with local organisations, rather than setting up wholly owned subsidiaries.

Tunisia has amended its laws governing insurance to provide a legislative framework for takaful. Comments from within the Tunisian insurance industry suggest that takaful will account for between 10% and 12% of all insurance business in Tunisia by 2020.

Tunisia’s Banque Zitouna has raised $9.7 million in capital through an issue of ordinary shares, which have been taken up by the Islamic Development Bank (IDB). This gives the IDB an almost 21% share in the bank, which is Tunisia’s only fully-fledged Islamic lender.

In Tanzania, Mr. Paul J. Ngwembe, Director Legal Enforcement, of Tanzania Insurance Regulatory Authority (TIRA) disclosed that TIRA is at the final stage of drafting Takaful Regulations with a view to setting up a regulatory mechanism of Takaful in the country. He added that TIRA encourages all stake-holders to attend Takaful training workshops so as to acquire the requisite know-how of this system.

Dubai Islamic Bank has opened a subsidiary in Kenya. Having received an approval from Central Bank of Kenya to enter the market, it has started to recruit staffs to enable it complete its formation process. It is expected to start operations in the last quarter of 2015. Upon launch, this will be the third full fledged Islamic bank to operate in the country.