Islamic finance covers all financial and commercial activities that respect the principles of Islamic law and jurisprudence, commonly known as Sharia or Islamic law. It is an ethical finance, not speculative and based on the real economy.

The BCEAO in its Instruction 002-003-2018 entered into force on March 21, 2018 distinguishes two categories the Credit Establishment exercising exclusively the Banking activity in conformity with the principles and rules of the Islamic Finance and the Credit Institutions exercising it partially through a dedicated Branch.

In the UEMOA area, the banking sector’s experiences remain limited to the Islamic Bank of Senegal, the Islamic Bank of Niger, and more recently the Coris Group with the establishment of the Islamic Branch at CBI SA in July 2015, followed by Mali and Senegal in May 2018, Côte d’Ivoire and Benin in June 2018.

In Senegal, even though there is a growing interest, Islamic finance is still in its infancy in a country where the banking sector is growing with a total balance sheet of CFAF 6 238 billion at the end of December 2016 (Annual report of the Banking Commission 2016- BCEAO site).

Today the sector has 25 banks and 4 financial institutions. The data on Islamic Finance are very modest compared to those of classical finance.

In the banking sector, we note as actors the Islamic Bank of Senegal, and the Islamic Branch of Coris Bank International of Senegal CBI Baraka called CBI BARAKA.

Regarding microfinance players, only the Partnership for the Mobilization of Savings and Credit in Senegal (PAMECAS) is active through its Islamic Finance Department (DEFI), the Islamic Credit Savings Mutual of Senegal (MECIS). ) having suspended its activities.

On the financial intermediation sector CGF Bourse has put on the market an offer of Sharia compliant Mutual Funds (FCPs) called “FCP Al Baraka”.

We have an offer from TAKAFUL with the company SEN ASSURANCES through SENVIE which is a life insurance solution in accordance with the principles and rules of Islamic Finance.

The UEMOA states have shown an increasing interest in the products of Islamic Finance, in this case the Sharia compliant bonds, the Sukuk. The State of Senegal is on its second issue, which allowed it to raise funds to support its growth for an emerging Senegal.

In terms of training, three master programs are available to date. This is the Master in Islamic Finance launched by the Institute of Training in Administration and Business Creation (IFACE) of the Faculty of Economics and Management (FASEG) of UCAD, in partnership with CIFIA Academy; the Master in Islamic Finance launched by CESAG in partnership with the IDB and the one initiated by BEM Management Business School.

Senegal is now a reference place for the UEMOA space in the supply of Islamic financial products. However, it must be recognized that this offer is still limited for a population of sixteen (16) million individuals, 95% Muslim. Study results (2011-2012 report on the study on the review of the regulatory framework of the financial system in force for the development of Islamic finance in UEMOA sponsored by the Ministry of Economy and Finance Senegal) available confirm the existence of the need which is primarily due to the low rate of financial inclusion (survey on the situation of Reference of Inclusion Financial Senegal (ESRIF) sponsored in 2017 by the Ministry of Economy and Senegal’s Finance in the country). The banking rate at the end of December 2016 was 18.5% (information note 4th quarter 2017 N ° 52 of the BCEAO – BCEAO site)

The results of a summary survey show interest in 61.5% of the sample surveyed.

The offer of financial products is a real opportunity for those wishing to conduct financial activities in accordance with their religious beliefs or simply for its quality of service (Islamic Finance: challenges and opportunities in Senegal: graduation memory 7th 2012-2014 CESAG promotion of Mr. Ibra Ndiaye under the direction of Dr. Abdou Diaw).

The Senegalese market of Islamic finance has a bright future ahead of it. With the entry into force on March 21, 2018 of the regulatory framework, a majority Muslim population (95%), Islamic finance through these different instruments constitute a real opportunity for the financing of the economy, the revival of the employment, the fight against poverty, the improvement of the living conditions of the citizens and the development of the most disadvantaged regions.

To achieve these results, it is up to the various actors to put in place a favorable framework for good dissemination through awareness and communication.

source (IFN)


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