Developing a regional hub for Islamic finance in the WAMU zone was the theme of discussions at the Senegal leg of the Islamic Finance Tour Africa 2023, which took place on Tuesday, 11 July 2023, in the Senegalese capital, Dakar. The event is a roadshow promoting Islamic finance in Africa. Following the inaugural event in Morocco, held at the Casablanca Stock Exchange in March, this second stage was hosted at Waqf Alkhayria Residence, Dakar. Co-organized by the consulting firms Dexterity Africa and CIFIA, the main aim of the event was to provide a platform for discussions between players in the Islamic finance industry in Senegal.

IFT Senegal 2023 was supported by a host of institutions. The event saw the participation of technical partners such as Central Bank of West African States (Banque Centrale des Etats de l’Afrique de l’Ouest), Bureau for the Monitoring of the Emerging Senegal Plan (Bureau Opérationnel de Suivi du Plan Sénégal Emergent) and Insurance Department of the General Directorate of the Financial Sector (Direction des assurances au sein de la Direction générale du secteur financier) ; and sponsors including Islamic Bank of Senegal (Banque Islamique du Sénégal), Programme for the Promotion of Islamic Microfinance in Senegal - PROMISE (Programme de la Promotion de la Microfinance Islamique au Sénégal), Project to Support the Development of Women's Entrepreneurship and Youth Employment - PADEF-EJ (Projet d’Appui au Développement de l’Entrepreneuriat Féminin et de l’emploi des Jeunes), Corporation for the Management of Public Infrastructure in the Urban Centres of Diamniadio and Lac Rose - SOGIP (Société de Gestion des Infrastructures publiques des pôles urbains de Diamniadio et du Lac Rose), High Authority for Waqf (Haute Autorité du Waqf).

These institutions made a remarkable contribution to the discussions through the contributions of their respective officials. In addition to the in-person and online audience, this human capital was enhanced by the attendance of eminent Senegalese personalities and experts of international renown. It was a day of experience sharing and deep reflection through high-level panels. In line with the theme chosen for this Senegalese leg, the event was an opportunity to better understand the challenges and dynamics of the Islamic finance industry in Senegal.

Discussions among participants revolved around and sought to address this critical question: how to further position Islamic finance as an instrument for economic development and financial inclusion in Senegal? These discussions provided an opportunity to reassess the state of maturity of this industry in the country and to reflect on the current challenges and future prospects. Also announced were initiatives to raise awareness about Islamic finance in Africa, such as IFICA (Islamic Fintech Innovation Challenge for Africa) and AIFC (African Islamic Finance Competition), which are competitions designed to discover potential talent in the industry. In addition, the various presentations made by the participants will be featured in a report to be published in a special issue of the magazine dedicated to the roadshow, known as IFTA MAG, according to the organizers. A first of its kind in Africa, this report will provide a comprehensive mapping and analysis of Islamic finance ecosystems in Africa (including Senegal), with a view to bringing players together from across the continent and serving as a forum for sharing experiences.

Mr. Bara Diene, CEO of CIFIA, recalled in his speech that the development of Islamic finance depends on the regulatory framework. In the same vein, the BCEAO, in its capacity as regulator, seized the opportunity offered by this forum to flesh out the regulatory texts governing Islamic banking and microfinance institutions in the WAMU zone. Its representatives, including Ms. Aminata Mbacke and Mr. Kadder Ismaël Touré, explained and clarified the regulatory texts. The audience was also able to express its concerns to the institution, which were attended to by the BCEAO officials. This effort by the Central Bank, in its role as regulator and guarantor of the stability of the ecosystem, to engage with the public helped to dispel any potential confusion over the interpretation of the regulatory texts. 

It is worth recalling that the Islamic Finance Tour Africa is an African roadshow that aims to contribute to the development of Islamic finance ecosystems in Africa and their interconnection on a continental scale. The initiative continues to gather interest from industry players in anticipation of its forthcoming legs in other African capitals. 

IF NEWS