capturing the africa opportunity
TRANSCRIPT
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
CAPTURING THE AFRICA OPPORTUNITY
EN
AB
LI N
G I S
LA
MI C
FI N
AN
CE
TO
DE
LI V
ER
ON
I TS
PO
TE
NT
I AL
I N A
FR
I CA
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
KEY DISCUSSION POINTS:
What do new research findings highlight as critical success factors for the development of Islamic finance in key African markets?
Building a practical strategy to make Islamic finance work in Africa
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
The global financial landscape underwent fundamental changes during the last two decades.
The deregulation of the banking industry.
Liberalisation of the financial markets (especially the opening up of national markets for international capital flows)
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
RESULTS:
• Emergence of huge global players with universal banking characteristics.
• Rapid increase in global capital movements.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
DURING THESE DECADES OF FINANCIAL DEREGULATION AND LIBERALISATION, THE AFRICAN CONTINENT NEEDS IN
TERMS OF DEVELOPMENT WERE MORE THAN OFTEN IGNORED AND LEFT
APART.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
AFRICA IS A MASSIVE POTENTIAL MARKET FOR ISLAMIC FINANCE.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
ISLAMIC FINANCE: A GOLDEN OPPORTUNITY FOR AFRICA
Source: http://en.wikipedia.org/wiki/Islam_by_country
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
BARRIERS AND CHALLENGES
• The lack of Shari’ah-compliant investment vehicles,
• Absence of legal and regulatory national frameworks,
• The quality of human resources,• The lack of awareness.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
THE ABSENCE OF ISLAMIC FINANCE INSTITUTIONS REGULATION IS ONE OF THE MAIN CONSTRAINTS TO THE DEVELOPMENT
OF ISLAMIC FINANCE INDUSTRY.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
WHAT DO WE NEED TO FOCUS ON:
• Capacity building,• The major schemes
that will enhance the supervisory Islamic finance architecture
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
THE PIONEERING EXAMPLE OF NIGERIAN STATE OF OSUN
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
$62 million from domestic pension funds and international investors,
paid 14.75 per cent in nominal terms (which is equivalent to about 6.75 per cent in real terms given the
prevailing 8 per cent inflation rate).
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
TWO LESSONS
• The first is that African countries should continue to be innovative to fund their development needs.
• Sukuk can help develop domestic capital markets, which is typically
a difficult and long process.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
CHALLENGE
To set up the conditions for Islamic financial products
to be attractive to the end-users and to the investors.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
SOLUTIONS
• A well-designed strategy to support the development of national and regional regulatory framework,
• A sustained capacity building both at human and institutional level and by offering lower financing costs,
• By providing better services to support the nascent SMEs and entrepreneurial customers in the continent.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
An aggressive marketing plan to tackle the lack of
understanding of Islamic financial products to the many
end-users and special attention should be directed to the still majority unbanked
peoples in the continent.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
THE MARKETING STRATEGY EXAMPLE OF ZITOUNA BANK IN
TUNISIA
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
HOW CAN THIS INSTITUTION CONTINUE AND STRIVE TO BECOME A LEADING FORCE IN THE
ISLAMIC FINANCE INDUSTRY?
Tunisians did not have trust in the Institution.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
IT NEEDED SOMEONE WHO BELIEVES IN ISLAMIC FINANCE, NOT ONLY AS AN INSTITUTION TO MANAGE, BUT ALSO AS SOMEONE TO EXPLAIN THE CONCEPTS OF ISLAMIC FINANCE, AS NEW AND DISTINGUISHED PRODUCT.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
• Introducing Islamic Finance,
• Explaining the Islamic banking concept,
Multiple national interaction and regional seminars.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
RESULTS:
• Retained its customer-base,• attracted new clients,
The Bank’s financial figures are a testimony to its success with
68 branches throughout the country.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
ZITOUNA MICROFINANCE.
Zitouna Takaful
Zitouna Bank was the first financial institution offering online banking services including money transfer
through mobile channel.
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B A R I Q R I F K I A B D O U L K A D E R A B O U T. M E / B A R RYC K R
ABOUT.ME/BARRYCKR
Bariq Rifki Abdoulkader
Marketing, Sales and Communication analyst.