Clifford Chance

Sovereign sukuk in Africa: A developing landscape

12 December 2017

On 24 September 2014, the Republic of South Africa (RSA) issued its inaugural US$500 million sukuk which was hoped by many commentators to be the catalyst to allow a US$-denominated African asset-based sukuk market to develop. The expectation was that the RSA's international sukuk would pave the way for future sovereign Islamic financings in Africa, as well as opening the Islamic financial markets to other governmental entities, financial institutions and corporate entities seeking new sources of funding through the international capital markets.

The expectation was that the RSA's international sukuk would pave the way for future sovereign Islamic financings in Africa, as well as opening the Islamic financial markets to other governmental entities, financial institutions and corporate entities seeking new sources of funding through the international capital markets.

This briefing explores: sukuk as a source of funding; growth in sukuk funding infrastructure development; sukuk structural variations across Africa and the outlook for sukuk in Africa.

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