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Financial Sector as the Backbone of Economic Growth: The Non-banking Sector

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Islamic Finance and Africa's Economic Resurgence

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Abstract

Until recently, Africa remained a continent filled with under-followed companies and stock markets. While China, India, and other emerging markets got the lion’s share of media and investor attention, Africa has received little notice for its recent run of solid economic performance. This is despite the fact that the continent is filled with resources to help fuel many of the booming economies that investors are clamouring for. Traditionally, Africa has not been a place where more risk-oriented emerging market investors would invest, but that is changing. Investors in search of higher returns have increased their risk tolerances and have begun to search for greater returns from so-called frontier markets

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Notes

  1. 1.

    Richard Bernstein, Africa: The Final Frontier, p. 17.

  2. 2.

    Franklin Allen & Others, “African Financial Systems: A Review” Review of Development Finance, vol. 1, Issue 2 April–June 2011, pp. 79–113.

  3. 3.

    Ibid.

  4. 4.

    Paul Collier and Jean-Louis Warnholz, “Now’s the Time to Invest in Africa,” Harvard Business Review February 2009. p. 5.

  5. 5.

    Ibid.

  6. 6.

    Franklin Allen & Others, “African Financial Systems: A Review”, p. 10.

  7. 7.

    Mihasonirina Andrianaivo and Charles Amo Yartey, Understanding the Growth of African Financial Markets, p. 8.

  8. 8.

    Société Générale Pan African Index.

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    Saudi Gazette “CMA approves Jadwa Africa Freestyle Fund”, www.saudigazette.com

  11. 11.

    Ibid.

  12. 12.

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  15. 15.

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  16. 16.

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  19. 19.

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  21. 21.

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  23. 23.

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  24. 24.

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  25. 25.

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  27. 27.

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  28. 28.

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  35. 35.

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  37. 37.

    Carolyn Campbell, “Private Equity In Africa— Lessons Learned”, Thunderbird Quarterly, Issue 2, 2009.

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  39. 39.

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  42. 42.

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  43. 43.

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  46. 46.

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  48. 48.

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  49. 49.

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  50. 50.

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  51. 51.

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  52. 52.

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  54. 54.

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  57. 57.

    For a comprehensive and detailed research on Sukuk see Muhammad Al-Bashir Muhammad Al-Amine, Global Sukuk and Islamic Securitization Market Financial Engineering and Product Innovation, Brill 2012.

  58. 58.

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  59. 59.

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  65. 65.

    Anouar Hassoune Adel Satel, “Islamic Finance Explores New Horizons in Africa”, p. 5.

  66. 66.

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  67. 67.

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  68. 68.

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    Samira Mensah & Others, Regulations and Fiscal Incentives Could Speed Islamic Finance Development In Africa, Standard & Poor’s August 6, 2015, www.standardandpoors.com, pp. 1–9.

  70. 70.

    See, Conventional banks could lay foundation for sukuk secondary market in West Africa www.meglobaladvisors.com

  71. 71.

    Elaine Moore, Andrew England and Robin Wigglesworth, “South Africa Joins Sukuk Bond Rush”, Financial Times, September 17, 2014.

  72. 72.

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  73. 73.

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  74. 74.

    Global Investment House, Sukuk Market—Down but Not Out, February 2009, p. 3.

  75. 75.

    Ibid.

  76. 76.

    Dana El Baltaji, “Nigeria Plans ṣukūk Debut Targeting Role as Sharī‘ah Hub: Islamic Finance”, Bloomberg, September 28, 2010, www.bloomberg.com, retrieved February 2012.

  77. 77.

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  78. 78.

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  79. 79.

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  80. 80.

    Christian Esters & Paul-Henri M Pruvost, “Will African Sovereigns Turn To Islamic Finance To Fund Growth?”, February 22, 2013.

  81. 81.

    Ibid.

  82. 82.

    Ibid.

  83. 83.

    Public-Private Infrastructure Advisory Facility (PPIAF), “Bond financing in Africa—the next big thing?” www.ppiaf.org, retrieved January 2012, p. 1.

  84. 84.

    Shawn Ladd, “Emerging Africa Expected To See Rise in Investment”, IMF Survey Magazine: Countries & Regions, January 12, 2011, www.imf.org, retrieved June 2011.

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  86. 86.

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  87. 87.

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  89. 89.

    Michael Wat, “Eurobonds Ride High in Africa”.

  90. 90.

    Cyrille Nkontchou, “Recent Evolution of the African Financial Markets” Private Sector Development, Proparco’s Magazine, Issue 5—March 2010—Africa’s Financial Markets: A Real Development Tool?, pp. 3–5; Paul Wallace, “Ghana Vows to Avoid Oil Curse”, The Banker Supplement, Ghana’s Rising Star, July 2011, p. 101.

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  95. 95.

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  96. 96.

    Tosin Sulaiman, “Rwanda Eurobond “priced to perfection”—lead managers. April 26, 2013.

  97. 97.

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  98. 98.

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  100. 100.

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  101. 101.

    SUDIP, ROY, “ZAMBIA LAUNCHES US$ 1BILLION 10 YEAR EUROBOND AT YEILD OF 8.625 %, APRIL 7, 2014. WWW.REUTERS.COM

  102. 102.

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  103. 103.

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  104. 104.

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  105. 105.

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  106. 106.

    Dominic O’Neil, “Chad Joins Local -Currency Spree”, Euromonney Magazine, July 2011 vol. 42, no. 507, p. 51.

  107. 107.

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  108. 108.

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  109. 109.

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  110. 110.

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  111. 111.

    Cyrille Nkontchou, “Recent Evolution of the African Financial Markets”, Private Sector Development, Proparco’s Magazine, Issue 5—March 2010—Africa’s Financial Markets: A Real Development Tool?, pp. 3–5.

  112. 112.

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  114. 114.

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  115. 115.

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  116. 116.

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  118. 118.

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  119. 119.

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  120. 120.

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  121. 121.

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  125. 125.

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  127. 127.

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  128. 128.

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  129. 129.

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  143. 143.

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  144. 144.

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  145. 145.

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  146. 146.

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  147. 147.

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  148. 148.

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  150. 150.

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    Muhammad Al Bashir Muhammad Al Amine

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Muhammad Al Amine, M. (2016). Financial Sector as the Backbone of Economic Growth: The Non-banking Sector . In: Islamic Finance and Africa's Economic Resurgence. Palgrave Studies in Islamic Banking, Finance, and Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-28835-2_6

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