Market News
African governments look to Islamic finance after Benin sukuk success - REUTERS
Key Points
- African states seek to diversify with sukuks, experts say
- Egypt leads Africa sukuk sales as 2025 volume hits $3 billion
- Gulf liquidity offers new opportunities for African funding
JOHANNESBURG, Jan 29 (Reuters) – Benin’s Islamic bond sale is encouraging other African states to consider sharia-compliant financing, after robust demand highlighted the potential to diversify funding and attract a broader investor base, advisers and analysts said.
Rothschild’s Gatien Bon, who advised the West African country on its international bond sale, described the sukuk issuance as a “turning point” for African sovereign borrowers.
“This creates more diversification in terms of format and therefore in terms of the investor base in Africa,” Bon said.
