- Africa has experienced strong economic growth over the past seven years above the global rate, however continued growth requires significant investment in infrastructure as there is a large infrastructure funding gap of $93 billion according to the World Bank.
- Traditional sources of infrastructure financing for African governments like export credit agencies, multilateral agencies, and development banks are limited, so countries are increasingly turning to capital markets through bond issuances and developing frameworks for Islamic financing instruments like sukuk to attract investment.
- Several African countries have begun establishing legal and regulatory frameworks to issue sovereign sukuk and develop Islamic capital markets, which could provide an important source of funding for infrastructure projects given the large Muslim populations in many African countries.
This document discusses private equity investment in Africa. It notes that while Africa has experienced strong economic growth in recent decades, it still faces challenges that impact the private equity industry. Private equity can help fill funding gaps for African businesses and projects. The document examines trends in private equity deals in Africa and outlines opportunities and challenges. It argues that governments have a key role to play in promoting an enabling environment for private equity to support growth and development, such as by improving legal/regulatory frameworks, encouraging local investment, and promoting impact investments. The conclusion raises issues for discussion around these topics.
Here are the key principles of Islamic finance in practice through its main products:
Murabaha - This is the most commonly used structure, where the bank purchases an asset requested by the customer and then sells it to the customer at an agreed upon profit margin and deferred payment terms. It is similar to a cost-plus financing structure.
Musharakah - A partnership contract between two or more parties to contribute capital to a joint business venture. Profits are shared according to a predetermined ratio, while losses are shared in proportion to capital contributed.
Mudarabah - A form of partnership where one party provides 100% of the capital while the other party manages the project. Profits are shared according to a predetermined ratio
boom and bust cycles”.
The financial crisis has positively impacted the prospects of Islamic finance in conventional markets in three key ways:
1) It questioned the sustainability of the conventional economic model and increased interest in ethical alternatives like Islamic finance.
2) It deepened the eurozone crisis and pushed investors to diversify their portfolios away from commodity-reliant economies and
Africa has enjoyed a decade of high growth, especially south of the Sahara, but this is now placing an increasing strain on the infrastructure stock. While investors, companies and donors have poured financing into roads, railways, information and communications technology (ICT), water and power, there remains a significant financing gap.
As much as US$93bn is required annually to meet the continent’s infrastructure needs through to 2020, with half of that amount currently being met. That leaves a large gap for investors to fill, including sovereign wealth funds, multilateral lenders, individual companies and private consortia. Are the companies and investors based in the cash-rich Gulf region, with its cultural and historical ties to Africa, positioned to participate?
The global Islamic finance industry has grown rapidly over the past decade and now manages over $1 trillion in assets. Several factors are driving continued growth, including increased capital from Muslim-majority countries, the rise of Islamic multinationals, and growing retail demand. While the industry has potential to tap into the large Muslim population worldwide, it still needs to educate customers and differentiate itself more from conventional finance. Regulatory challenges and a lack of skilled professionals could hamper further expansion.
This document discusses private equity investment in Africa. It notes that while Africa has experienced strong economic growth in recent decades, it still faces challenges that impact the private equity industry. Private equity can help fill funding gaps for African businesses and projects. The document examines trends in private equity deals in Africa and outlines opportunities and challenges. It argues that governments have a key role to play in promoting an enabling environment for private equity to support growth and development, such as by improving legal/regulatory frameworks, encouraging local investment, and promoting impact investments. The conclusion raises issues for discussion around these topics.
Here are the key principles of Islamic finance in practice through its main products:
Murabaha - This is the most commonly used structure, where the bank purchases an asset requested by the customer and then sells it to the customer at an agreed upon profit margin and deferred payment terms. It is similar to a cost-plus financing structure.
Musharakah - A partnership contract between two or more parties to contribute capital to a joint business venture. Profits are shared according to a predetermined ratio, while losses are shared in proportion to capital contributed.
Mudarabah - A form of partnership where one party provides 100% of the capital while the other party manages the project. Profits are shared according to a predetermined ratio
boom and bust cycles”.
The financial crisis has positively impacted the prospects of Islamic finance in conventional markets in three key ways:
1) It questioned the sustainability of the conventional economic model and increased interest in ethical alternatives like Islamic finance.
2) It deepened the eurozone crisis and pushed investors to diversify their portfolios away from commodity-reliant economies and
Africa has enjoyed a decade of high growth, especially south of the Sahara, but this is now placing an increasing strain on the infrastructure stock. While investors, companies and donors have poured financing into roads, railways, information and communications technology (ICT), water and power, there remains a significant financing gap.
As much as US$93bn is required annually to meet the continent’s infrastructure needs through to 2020, with half of that amount currently being met. That leaves a large gap for investors to fill, including sovereign wealth funds, multilateral lenders, individual companies and private consortia. Are the companies and investors based in the cash-rich Gulf region, with its cultural and historical ties to Africa, positioned to participate?
The global Islamic finance industry has grown rapidly over the past decade and now manages over $1 trillion in assets. Several factors are driving continued growth, including increased capital from Muslim-majority countries, the rise of Islamic multinationals, and growing retail demand. While the industry has potential to tap into the large Muslim population worldwide, it still needs to educate customers and differentiate itself more from conventional finance. Regulatory challenges and a lack of skilled professionals could hamper further expansion.
This document summarizes the development of Islamic finance in the Gulf Cooperation Council (GCC) states. It finds that the GCC collectively accounts for over 40% of global shariah-compliant financial assets, led by Saudi Arabia, Kuwait, UAE, Bahrain, and Qatar. Government policy has generally facilitated Islamic finance's expansion through legislation and regulation, though some GCC states were initially cautious. The banking sector has grown rapidly, offering deposits, financing for trade, real estate, and consumer credit. Sukuk issuance and financial centers have also contributed to the industry's growth, with Bahrain emerging as a major Islamic finance hub. Overall, the GCC states have played a leading role in the global development of Islamic
Kenya is located in East Africa and has a population of over 41 million. Nairobi is the largest city and acts as the major transport hub for the region. Kenya has a growing economy focused on agriculture, manufacturing, and tourism. The government's Vision 2030 aims to make Kenya an upper-middle income country through sustained economic growth, improved social conditions, and a democratic political system. Key sectors for investment include agriculture, manufacturing, infrastructure such as energy and transport, and tourism which is a major foreign exchange earner.
This document summarizes an Islamic finance presentation on emerging opportunities for Islamic ship financing. It outlines the concepts of Islamic finance, including a prohibition on interest (riba) and a focus on profit and loss sharing. It discusses the progress of Islamic banking, current market size, and recent deals in Islamic ship financing. Structures for Islamic ship financing include existing vessel financing using an ijara (lease) structure and newbuild vessel financing using an istisna'a (procurement contract) structure. Case studies of recent Islamic ship financing deals are also presented.
Financing infrastructure in Africa requires innovative solutions to meet the immense funding needs, estimated in the tens of billions. While traditional sources can fund up to 50% of requirements, private investment is increasingly important. Liquidity for infrastructure projects is shifting from traditional lenders to private equity and global investors due to economic factors. Risk mitigation through structures like PPPs and subsidies are also key to attracting investment, along with efforts to develop domestic capital markets and manage project-specific risks at each stage of development. Africa shows potential to pioneer innovative financing models to close its infrastructure gap.
Islamic Finance- New Frontiers, New Opportunities by Xavier FozASCAME
Presentation of Islamic Finance-New Frontiers, New Opportunities: What are the advantages for the Mediterranean region?
The II Islamic Finance Summit was held in the framework of the VIII Mediterranean Week of Economic Leaders organized by ASCAME and the Chamber of Commerce and Industry of Barcelona
The document discusses the challenges facing the Netherlands-African Business Council (NABC) in assisting its members to build sustainable business opportunities in Africa. NABC provides services like trade missions and consulting to help Dutch businesses invest in emerging African markets. However, high infrastructure investments in Africa face challenges like long contract cycles, regulatory uncertainty, and new sources of foreign direct investment. As a result, NABC wants to review its strategic programs to ensure it provides value to members in these institutional environments.
The document provides an overview of the Islamic finance industry. It discusses the history and origins of Islamic finance, the key players and geographic clusters, major products and deals, and current trends. The global Islamic finance market is growing rapidly at 10-15% annually and has reached $265 billion in assets, though there remains a need for standardization and professional training to further develop the industry.
This document summarizes the Islamic finance education landscape and developments in 2016. It finds that while the Islamic finance industry is growing, there is a shortage of qualified human resources which poses a risk. In 2016, several developments aimed to address this, including new Islamic finance centers in Pakistan backed by the UK, and a partnership between the BIBF and University of Bolton for an MBA program. Online education is growing, with initiatives launched by organizations like IDB's IRTI on edX and IFSB's new e-learning portal. Looking to 2017, online learning is expected to continue growing, which will benefit Islamic finance education and the industry overall.
This document discusses foreign direct investment (FDI) from a Nigerian perspective. It outlines how some Nigerian enterprises have become multinational companies investing in other countries, particularly in sub-Saharan Africa, in sectors like banking, oil and gas, and telecommunications. The document examines the determinants and trends of FDI in Africa since the 1970s. It aims to understand if existing policies are sufficient to attract investment and discusses factors influencing FDI, its role, trends, sector allocation, and reasons for Africa's lower levels of FDI historically. Recommendations are provided for multinational enterprises and policymakers.
Islamic Project Finance in Saudi Arabiafinancedude
1) The article discusses the $5.8 billion financing for the $9.9 billion Petro-Rabigh project in Saudi Arabia, which included a $600 million Islamic financing tranche. This represented the first use of Islamic financing in a multi-sourced project financing in Saudi Arabia.
2) The Islamic financing structure was based on an Istisna'a (procurement agreement) and Ijara (lease), combining structures used successfully elsewhere in the Gulf. However, there was skepticism that these could work in Saudi Arabia due to legal/regulatory differences.
3) With support from Saudi authorities, a key change was allowing a "special purpose company" to enable the Islamic structure. This case
This document discusses increasing trade and investment between Organization of Islamic Cooperation (OIC) member countries. It finds that Malaysia, Turkey, and Saudi Arabia have seen significantly higher growth in trade with other OIC members than with the rest of the world between 2003-2007. Key drivers of this trend are the strong economic growth and emerging market status of many OIC countries, as well as forums promoting business and economic cooperation between Muslim-majority states. Events like the annual World Islamic Economic Forum have helped connect entrepreneurs and increase partnerships within the OIC community.
The document summarizes key trade information about several countries in the MENA region. Dubai is highlighted as a major global trade hub, benefiting from its airports, ports, and free zones. Trade in Dubai relies heavily on re-exports and letters of credit are popular instruments. The UAE is investing heavily in infrastructure and exploring alternative power sources like nuclear. Qatar is investing $120 billion in infrastructure for the 2022 World Cup. Saudi Arabia spends heavily on infrastructure and exports large amounts of oil and gas to Asia and Europe. Egypt faces challenges from political turmoil and reduced oil prices/demand from key markets. Lebanon's trade has been impacted by the loss of Syria as a trading partner. [/SUMMARY]
Singapore & Hong Kong, Asia's Wealth MagnetsPatrick Ho
Synopsis: Investors are taking a close look at Singapore and Hong Kong as keywealth management centres in Asia. And there is no stopping these two financial hubs from growing their clout.
1) Japanese companies are extending their supply chains throughout Asia to diversify risk by sourcing parts from multiple local suppliers instead of just Japanese ones. This was prompted by natural disasters disrupting supply chains.
2) Japanese companies are also investing more in other Asian countries by establishing local manufacturing plants either on their own or through partnerships with local companies. This allows them to sell locally while transferring technology.
3) To further mitigate supply chain risks, Japanese companies are using financial tools like trade receivables finance and letters of credit to improve cash flow and accelerate payments. They aim to have flexible supply chains that allow quickly switching suppliers or locations.
One belt one road insights for finland, Team Finland Future Watch Report, Jan...Team Finland Future Watch
The One Belt One Road initiative aims to connect over 60 countries through physical, commercial, cultural and other links. The "One Belt" refers to recreating old land-based Silk Road trade routes from China through Central Asia to Europe. The "One Road" refers to a maritime route connecting China to Southeast Asia, South Asia, Africa, the Middle East and Europe. The initiative aims to achieve policy coordination, build infrastructure to enhance connectivity, increase trade and investment, promote financial integration and foster better relations among participating nations. It is a high priority for China and is being organized through government agencies and ministries.
The document discusses trends in the global Islamic finance industry, prospects for its sustainability, and key challenges. It notes that Islamic finance has grown to nearly a $1 trillion industry spread across 70 countries, with some regions like the Gulf seeing exceptional growth. While initially faith-driven, Islamic finance is becoming institutionalized and seen as a parallel system that can complement conventional finance. The prospects for sustainability are promising due to growing investments across hubs and recognition of Islamic finance's appeal beyond religion. However, challenges remain around further developing regulatory frameworks and adapting innovative products without compromising sharia principles.
ISLAMIC BANKING AND FINANCE: WHAT’S IN IT FOR CANADIAN COMPANIES?
Mohammad Fadel
Canada Research Chair in the Law and Economics of Islamic Law University of Toronto Faculty of Law October 16, 2006
El documento describe el sistema nervioso desde dos puntos de vista: anatómico y funcional. Desde el punto de vista anatómico, el sistema nervioso se divide en central y periférico. Funcionalmente, se divide en somático y autónomo. El cerebro controla las acciones y reacciones del cuerpo y regula las funciones corporales.
California lawmakers will focus on the state's $26.6 billion budget deficit in the coming weeks. They have introduced over 2,300 bills by the deadline. Among the bills are four related to the arrest of a paroled sex offender last year. Legislative committees will begin reviewing the thousands of bills as well as proposals to close the budget gap.
A panel at Fresno State discussed the recent protests in Egypt that led to Hosni Mubarak's resignation. The four panelists covered different aspects of the revolution, noting that dissatisfaction began last year when a teen was tortured and killed by police for using the internet. Technology, including Facebook and Twitter, helped spread information and aid the success of the revolution despite government internet cuts
This document summarizes the development of Islamic finance in the Gulf Cooperation Council (GCC) states. It finds that the GCC collectively accounts for over 40% of global shariah-compliant financial assets, led by Saudi Arabia, Kuwait, UAE, Bahrain, and Qatar. Government policy has generally facilitated Islamic finance's expansion through legislation and regulation, though some GCC states were initially cautious. The banking sector has grown rapidly, offering deposits, financing for trade, real estate, and consumer credit. Sukuk issuance and financial centers have also contributed to the industry's growth, with Bahrain emerging as a major Islamic finance hub. Overall, the GCC states have played a leading role in the global development of Islamic
Kenya is located in East Africa and has a population of over 41 million. Nairobi is the largest city and acts as the major transport hub for the region. Kenya has a growing economy focused on agriculture, manufacturing, and tourism. The government's Vision 2030 aims to make Kenya an upper-middle income country through sustained economic growth, improved social conditions, and a democratic political system. Key sectors for investment include agriculture, manufacturing, infrastructure such as energy and transport, and tourism which is a major foreign exchange earner.
This document summarizes an Islamic finance presentation on emerging opportunities for Islamic ship financing. It outlines the concepts of Islamic finance, including a prohibition on interest (riba) and a focus on profit and loss sharing. It discusses the progress of Islamic banking, current market size, and recent deals in Islamic ship financing. Structures for Islamic ship financing include existing vessel financing using an ijara (lease) structure and newbuild vessel financing using an istisna'a (procurement contract) structure. Case studies of recent Islamic ship financing deals are also presented.
Financing infrastructure in Africa requires innovative solutions to meet the immense funding needs, estimated in the tens of billions. While traditional sources can fund up to 50% of requirements, private investment is increasingly important. Liquidity for infrastructure projects is shifting from traditional lenders to private equity and global investors due to economic factors. Risk mitigation through structures like PPPs and subsidies are also key to attracting investment, along with efforts to develop domestic capital markets and manage project-specific risks at each stage of development. Africa shows potential to pioneer innovative financing models to close its infrastructure gap.
Islamic Finance- New Frontiers, New Opportunities by Xavier FozASCAME
Presentation of Islamic Finance-New Frontiers, New Opportunities: What are the advantages for the Mediterranean region?
The II Islamic Finance Summit was held in the framework of the VIII Mediterranean Week of Economic Leaders organized by ASCAME and the Chamber of Commerce and Industry of Barcelona
The document discusses the challenges facing the Netherlands-African Business Council (NABC) in assisting its members to build sustainable business opportunities in Africa. NABC provides services like trade missions and consulting to help Dutch businesses invest in emerging African markets. However, high infrastructure investments in Africa face challenges like long contract cycles, regulatory uncertainty, and new sources of foreign direct investment. As a result, NABC wants to review its strategic programs to ensure it provides value to members in these institutional environments.
The document provides an overview of the Islamic finance industry. It discusses the history and origins of Islamic finance, the key players and geographic clusters, major products and deals, and current trends. The global Islamic finance market is growing rapidly at 10-15% annually and has reached $265 billion in assets, though there remains a need for standardization and professional training to further develop the industry.
This document summarizes the Islamic finance education landscape and developments in 2016. It finds that while the Islamic finance industry is growing, there is a shortage of qualified human resources which poses a risk. In 2016, several developments aimed to address this, including new Islamic finance centers in Pakistan backed by the UK, and a partnership between the BIBF and University of Bolton for an MBA program. Online education is growing, with initiatives launched by organizations like IDB's IRTI on edX and IFSB's new e-learning portal. Looking to 2017, online learning is expected to continue growing, which will benefit Islamic finance education and the industry overall.
This document discusses foreign direct investment (FDI) from a Nigerian perspective. It outlines how some Nigerian enterprises have become multinational companies investing in other countries, particularly in sub-Saharan Africa, in sectors like banking, oil and gas, and telecommunications. The document examines the determinants and trends of FDI in Africa since the 1970s. It aims to understand if existing policies are sufficient to attract investment and discusses factors influencing FDI, its role, trends, sector allocation, and reasons for Africa's lower levels of FDI historically. Recommendations are provided for multinational enterprises and policymakers.
Islamic Project Finance in Saudi Arabiafinancedude
1) The article discusses the $5.8 billion financing for the $9.9 billion Petro-Rabigh project in Saudi Arabia, which included a $600 million Islamic financing tranche. This represented the first use of Islamic financing in a multi-sourced project financing in Saudi Arabia.
2) The Islamic financing structure was based on an Istisna'a (procurement agreement) and Ijara (lease), combining structures used successfully elsewhere in the Gulf. However, there was skepticism that these could work in Saudi Arabia due to legal/regulatory differences.
3) With support from Saudi authorities, a key change was allowing a "special purpose company" to enable the Islamic structure. This case
This document discusses increasing trade and investment between Organization of Islamic Cooperation (OIC) member countries. It finds that Malaysia, Turkey, and Saudi Arabia have seen significantly higher growth in trade with other OIC members than with the rest of the world between 2003-2007. Key drivers of this trend are the strong economic growth and emerging market status of many OIC countries, as well as forums promoting business and economic cooperation between Muslim-majority states. Events like the annual World Islamic Economic Forum have helped connect entrepreneurs and increase partnerships within the OIC community.
The document summarizes key trade information about several countries in the MENA region. Dubai is highlighted as a major global trade hub, benefiting from its airports, ports, and free zones. Trade in Dubai relies heavily on re-exports and letters of credit are popular instruments. The UAE is investing heavily in infrastructure and exploring alternative power sources like nuclear. Qatar is investing $120 billion in infrastructure for the 2022 World Cup. Saudi Arabia spends heavily on infrastructure and exports large amounts of oil and gas to Asia and Europe. Egypt faces challenges from political turmoil and reduced oil prices/demand from key markets. Lebanon's trade has been impacted by the loss of Syria as a trading partner. [/SUMMARY]
Singapore & Hong Kong, Asia's Wealth MagnetsPatrick Ho
Synopsis: Investors are taking a close look at Singapore and Hong Kong as keywealth management centres in Asia. And there is no stopping these two financial hubs from growing their clout.
1) Japanese companies are extending their supply chains throughout Asia to diversify risk by sourcing parts from multiple local suppliers instead of just Japanese ones. This was prompted by natural disasters disrupting supply chains.
2) Japanese companies are also investing more in other Asian countries by establishing local manufacturing plants either on their own or through partnerships with local companies. This allows them to sell locally while transferring technology.
3) To further mitigate supply chain risks, Japanese companies are using financial tools like trade receivables finance and letters of credit to improve cash flow and accelerate payments. They aim to have flexible supply chains that allow quickly switching suppliers or locations.
One belt one road insights for finland, Team Finland Future Watch Report, Jan...Team Finland Future Watch
The One Belt One Road initiative aims to connect over 60 countries through physical, commercial, cultural and other links. The "One Belt" refers to recreating old land-based Silk Road trade routes from China through Central Asia to Europe. The "One Road" refers to a maritime route connecting China to Southeast Asia, South Asia, Africa, the Middle East and Europe. The initiative aims to achieve policy coordination, build infrastructure to enhance connectivity, increase trade and investment, promote financial integration and foster better relations among participating nations. It is a high priority for China and is being organized through government agencies and ministries.
The document discusses trends in the global Islamic finance industry, prospects for its sustainability, and key challenges. It notes that Islamic finance has grown to nearly a $1 trillion industry spread across 70 countries, with some regions like the Gulf seeing exceptional growth. While initially faith-driven, Islamic finance is becoming institutionalized and seen as a parallel system that can complement conventional finance. The prospects for sustainability are promising due to growing investments across hubs and recognition of Islamic finance's appeal beyond religion. However, challenges remain around further developing regulatory frameworks and adapting innovative products without compromising sharia principles.
ISLAMIC BANKING AND FINANCE: WHAT’S IN IT FOR CANADIAN COMPANIES?
Mohammad Fadel
Canada Research Chair in the Law and Economics of Islamic Law University of Toronto Faculty of Law October 16, 2006
El documento describe el sistema nervioso desde dos puntos de vista: anatómico y funcional. Desde el punto de vista anatómico, el sistema nervioso se divide en central y periférico. Funcionalmente, se divide en somático y autónomo. El cerebro controla las acciones y reacciones del cuerpo y regula las funciones corporales.
California lawmakers will focus on the state's $26.6 billion budget deficit in the coming weeks. They have introduced over 2,300 bills by the deadline. Among the bills are four related to the arrest of a paroled sex offender last year. Legislative committees will begin reviewing the thousands of bills as well as proposals to close the budget gap.
A panel at Fresno State discussed the recent protests in Egypt that led to Hosni Mubarak's resignation. The four panelists covered different aspects of the revolution, noting that dissatisfaction began last year when a teen was tortured and killed by police for using the internet. Technology, including Facebook and Twitter, helped spread information and aid the success of the revolution despite government internet cuts
Sharon Baker is a registered nurse with over 25 years of experience in home health, education, and clinical settings. She specializes in OASIS review, ICD-10 coding, and medical record review for home health agencies. Baker holds certifications in OASIS and ICD-10 coding. She has worked as an OASIS specialist, clinical nurse, instructor, and administrator. Baker is skilled in online teaching, clinical supervision, and quality assurance.
The document provides tips to avoid common interview mistakes. It lists the top 5 mistakes as being unprepared for tough questions, having an unmatched speaking style compared to the interviewer, talking too much, bringing up negative aspects of the past, and sharing too much personal information like previous salary. It advises preparing answers for all types of questions, matching the interviewer's tone, keeping answers concise, having a positive spin on past experiences, and avoiding discussing salary details.
Marine Conservation and Management Assessment of Baja CaliforniaPrestyn McCord
This document provides an assessment of marine conservation and management in the Baja California region of Mexico. It summarizes the key biodiversity and ecosystems found in the region, including mangroves, kelp forests, and the pelagic ecosystem. The biodiversity of the region is threatened by overfishing, climate change, and poor resource management. The document evaluates oceanographic influences, the state of coastal and pelagic ecosystems, marine food production, ecosystem management challenges, and makes recommendations to improve conservation and management of the region's marine resources.
Este documento describe las diferentes clases de skinheads, incluyendo skinheads neonazis, skinheads S.H.A.R.P (contra el racismo), y skinheads R.A.S.H (rojos y anarquistas). Explica brevemente las creencias de cada grupo, como que los skinheads neonazis originalmente no eran racistas aunque ahora se les asocia con el neonazismo, mientras que los skinheads S.H.A.R.P y R.A.S.H luchan contra el racismo desde perspectivas antifascistas y de izquier
El documento resume las principales partes y funciones del tronco encefálico. El tronco encefálico está compuesto de la médula oblongada, el puente y el mesencéfalo. Cumple las funciones de conducir tractos ascendentes y descendentes, controlar la respiración, el sistema cardiovascular y la conciencia, y contiene los núcleos de los nervios craneanos III a XII.
La kinesiología tiene sus orígenes en la antigüedad en civilizaciones como Mesopotamia, Egipto, India y China, que utilizaban tratamientos físicos como masajes y ejercicios. Figuras como Hipócrates, Aristóteles y Galeno reconocieron el valor de los ejercicios físicos para la salud. En los siglos XIX y XX surgen nuevos enfoques como la osteopatía, hidroterapia y fisioterapia, mientras que la Segunda Guerra Mundial impulsó el desarrollo
Este documento resume la historia de tres importantes marcas colombianas: Ecopetrol, Cerveza Águila y Avianca. Ecopetrol se fundó en 1951 como una empresa estatal colombiana dedicada a la industria petrolera. Cerveza Águila comenzó en 1905 en Barranquilla y se constituyó formalmente en 1933. Avianca nació en 1919 en Barranquilla como la segunda aerolínea más antigua del mundo, originalmente llamada SCADTA.
The document advertises and provides information about the London Build Expo 2016 construction trade show taking place on October 26th-27th in London. It highlights some of the key projects and developments happening in London, lists previous exhibitors, and provides details on several conference sessions, workshops, and networking events that will be part of the expo, including a VIP luncheon and the London Construction Awards comedy evening hosted by Jimmy Carr.
Este documento presenta información sobre procedimientos quirúrgicos para la rehabilitación de pacientes traumatizados en las articulaciones de la rodilla y el hombro. Describe la anatomía de estas articulaciones y los procedimientos quirúrgicos comunes como la reconstrucción de ligamentos de la rodilla usando injertos de donantes y la reparación artroscópica del manguito rotador del hombro. También resume los protocolos de rehabilitación postquirúrgica y los tratamientos no quirúrgicos para lesiones como tendinitis e
El documento habla sobre la kinesiología del codo. Explica los músculos flexores y extensores del codo. Además, define una fractura de codo como una fractura de uno o más de los tres huesos que forman la articulación del codo, la cual a menudo ocurre debido a una lesión como una caída sobre la mano extendida con el codo flexionado. La osteoporosis también puede aumentar el riesgo de fractura de codo.
This official academic transcript from the University of Wisconsin - Madison provides Megan Perry's academic record. It shows that she earned a Bachelor of Arts degree in 2015 from Texas A&M University and is currently pursuing a Master's degree in Russian, East European and Central Asian Studies at UW-Madison. Her transcript details the courses she has taken, grades received, credits earned and her current 3.912 GPA. The transcript was requested electronically by Megan Perry and delivered by Credentials Inc. on behalf of UW-Madison.
Este documento resume varias enfermedades óseas, incluyendo la displasia ósea, osteomalacia, osteomielitis y tumores óseos. La displasia ósea es una anomalía en el desarrollo óseo que causa deformaciones, la osteomalacia es una desmineralización ósea debido a falta de vitamina D, la osteomielitis es una infección del hueso causada por bacterias, y los tumores óseos pueden ser benignos o malignos con síntomas como dolor óseo y fracturas.
This document discusses the symbolism of parts of a Roman shield, including eagle wings representing the Roman army, lightning bolts symbolizing Jupiter the king of the Roman gods, and the color red representing Mars the god of war. Senior Roman soldiers would commission craftsmen to paint their shields with scenes from myths or battles. The document prompts the reader to design their own Roman shield and include symbols that are important to them.
Christen Uselton has extensive experience in dance, cheerleading, and customer service roles. She graduated from Lake Travis High School in 2012 and is predicted to graduate from the University of North Texas in 2016 with a degree in dance and education. She has held leadership roles in numerous dance teams, organizations, and her sorority. Her skills include dance, cheerleading, American Sign Language, accounting, and computer applications.
The document discusses China-Africa cooperation through the Forum on China-Africa Cooperation (FOCAC). It outlines how FOCAC has positioned China as Africa's most important partner through trade, investment, and development projects over the past decade. A key mechanism for projects is Master Facility Agreements between China and African states, which provide low-interest loans to Chinese firms to undertake infrastructure projects and are repaid through commodity agreements. While FOCAC has benefits, some argue it could raise debt levels and does not always ensure local benefits or maintenance after project completion.
This document summarizes a meeting between the International Network of Alternative Financial Institutions in Africa (INAFI Africa) and African diaspora organizations. The goals of the meeting were to establish collaboration between the groups in harnessing remittances and microfinance to create jobs and incomes in Africa. Key outcomes included identifying immediate partnership opportunities, reviewing experiences of diaspora involvement in microfinance, and establishing expectations and next steps. The groups agreed to action plans around building trust, facilitating investment, using technology, and improving microfinance institutions' capacity. The document provides context on the growth of microfinance in Africa and challenges in attracting financing for the sector.
The document discusses a high-level side event on leveraging pension funds for Africa's infrastructure development that will take place during the Third International Conference on Financing for Development in Addis Ababa, Ethiopia from July 14-17, 2015. Africa faces a large funding gap for needed infrastructure projects estimated at $50 billion annually. While African pension funds hold an estimated $350 billion that could help close this gap, currently most funds are not invested in infrastructure development with the exception of South Africa. The event aims to explore how to better harness African pension funds for infrastructure financing and discuss regulatory reforms and improving the investment climate to encourage greater private investment in infrastructure projects on the continent.
Zambia expects its maize production to increase this year, pushing stocks into a surplus and reversing earlier warnings of an import need due to drought. Higher crop yields are projected to boost production to 2.87 million metric tonnes from 2.62 million tonnes last year, despite less cultivated land area. This projected surplus of 635,000 tonnes exceeds domestic consumption needs for the 2016-17 marketing season. The agriculture minister provided the updated production outlook to legislators, in contrast to concerns raised as recently as March about a shrinking harvest due to erratic rains.
International Business Practices IP #4Michelle SattenProfessor.docxmariuse18nolet
International Business Practices IP #4
Michelle Satten
Professor Asefaw Indrias
December 16, 2013
Introduction
Opening an office in Johannesburg would ensure a more efficient management of the bank’s assets in the African region. A local presence will allow the bank to extend its coverage of markets in Africa, and will facilitate its round the clock operations on the foreign exchange market for example, to enforce the minimum exchange rate. To reduce concentration risk, the bank should aim for a broad diversification of its investments, and it is important turn to new markets so as to facilitate this. Africa’s economic importance is growing considerably in modern years, similar to its bond and stock markets.
Challenges in the new environment
Macroeconomic Policy. Macroeconomic policy had direct relation to budget deficit and price rises rate, which auxiliary affect the economic constancy. Macroeconomic guiding principles of African countries are still going through reforms, and faces significant restraints like crime restrictive fiscal and monetary policies, low domestic savings, low skill levels, labor market rigidities and inadequate levels of FDI.
Labor Market. Though population in African countries is extremely high, the percentage of people in employment is rather very low. Squat employment and elevated unemployment rate, coupled with unfairly dispersed educational qualifications is a stern disadvantage for labor market. An additional problem companies face is absence of skilled manual labor and low litheness of labor market.
Economic Inequality and Poverty. Deficiency in Africa is characterized by ethnic and regional magnitudes, and as per studies, more than 75% of poor people live in countryside areas. Besides severe levels of poverty, lofty levels of disparity of wealth and income co-exist in the economies. South Africa is one of the most developed economies in Africa yet it is also the country with highest economic inequality.
Political Instability. Political instabilities are a sensitive issue for foreign investors and one of the biggest reasons to drive them away. Internal tensions, coups, border conflicts etc have been common in history of African economies. Occasionally, even though a country is politically firm, conflicts faced by neighboring countries have negative impact on their economy.
Political and legal systems in Johannesburg
South Africa's legal system, similar to the rest of the political system, was thoroughly transformed as the apartheid-based constitutional system was rationalized during the early 1990s. Nonetheless, many laws not related to apartheid unrelated to be rooted in the older legal system. Thus, the justice structure after 1994 reflected elements of both the apartheid-era system and fair reforms.
South Africa has an amalgam or 'mixed' legal system, fashioned by interweaving of a number of different legal traditions: a civil law system hereditary from the Dutch, a common law system hereditary from the .
The document provides an overview of the FinTech market in Africa, including economic, demographic, and FinTech trends. It discusses factors driving FinTech adoption such as Africa's growing and youthful population, limited banking infrastructure, and increasing mobile and internet penetration. It also profiles the key FinTech markets of Egypt, Kenya, Nigeria, and South Africa, noting their populations, GDPs, and other financial inclusion metrics. The report indicates these countries are expected to see strong economic growth through 2027.
Diaspora bond unlocking diaspora savings opportunities for investments in cam...Emmanuel Lao
This digital artifact highlights the importance of mobilizing the diaspora savings through "diaspora bonds" to finance development projects in a developing country like Cameroon with a growing and dynamic diaspora around the world.
Islamic finance is growing in Africa as countries seek to tap cash-rich Middle Eastern investors to finance infrastructure projects. Several countries have issued sovereign sukuk bonds, including Nigeria, Senegal, South Africa, Gambia and Sudan. Kenya, Morocco, Tunisia and Ivory Coast are developing their Islamic finance regulations and markets. The prospects for using Islamic finance for infrastructure programs across Africa are strong, as the global sukuk market is projected to reach $900 billion by 2017.
On Facing the age-old issue of Illicit Financial Outflows-Vulture Funds, Squa...AYshare
Vulture funds refer to illicit financial flows, or money illegally siphoned out of developing countries. An estimated $443 billion was stolen from Sub-Saharan Africa between 1970-2004, while $50-60 billion continues to be lost every year. This capital flight has severely undermined Africa's ability to finance development and reduced revenues available. While the Addis Ababa Action Agenda aims to curb these flows, illicit financial flows remain a major challenge, with corrupt officials and multinational companies complicit in driving money into tax havens and safe havens. Addressing these issues will be crucial to achieving sustainable development goals and ensuring developing countries can finance growth.
This document discusses the development of microfinance in Africa and argues for an alternative approach. Some key points:
1. Microfinance has a long history in Africa but took its current form in the 1980s as a self-help initiative for the poor. However, its development is now influenced by global politics and market-based ideology.
2. Commercializing and mainstreaming microfinance through capital markets and regulation has constrained growth and neglected institutional development needs. This has undercapitalized Africa's microfinance industry despite developing investment funds.
3. For microfinance to succeed in Africa, it must put client needs first before other concerns, focus on opening economic opportunities for the poor, and have committed, mission-driven
Promote international monetary cooperation;
Facilitate the expansion and balanced growth of international trade;
Promote exchange stability;
Assist in the establishment of a multilateral system of payments; and
Make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.
The IMF is accountable to the governments of its member countries. At the top of its organizational structure is the Board of Governors, which consists of one Governor and one Alternate Governor from each member country.
The Board of Governors meets once each year at the IMF-World Bank Annual Meetings.
Twenty-four of the Governors sit on the International Monetary and Financial Committee (IMFC) and normally meet twice each year.
The IMF's day-to-day work is overseen by its 24-member Executive Board, which represents the entire membership, this work is guided by the IMFC and supported by the IMF staff.
The Managing Director is the head of the IMF staff and Chairman of the Executive Board and is assisted by four Deputy Managing Directors.
This document discusses Kenya's large infrastructure financing gap and need for private sector investment. It notes that Kenya faces an annual infrastructure deficit of $2.1 billion, but has high public debt that constrains growth. Islamic finance could help by mobilizing private capital for infrastructure projects in Kenya. The country aims to attract funding from institutional investors through new financial instruments and regulatory reforms to develop critical infrastructure and accelerate economic growth.
There is a tremendous opportunity for #africanstartup entrepreneurs to serve the growing population of African Islamic communities.
#innovation #fintech #islamicfinance #islamicbanking
This document discusses issues related to illicit financial flows from Africa. It defines illicit financial flows as unrecorded capital flows from criminal activities like corruption, drug trading, and tax evasion. It estimates that Africa has lost between $854 billion to $1.8 trillion to illicit financial flows since 1970. These outflows undermine development by reducing tax revenue and domestic resource mobilization. They also perpetuate external debt and aid dependence. The document examines how illicit flows relate to natural resources, governance, private sector activities, and conflicts. It argues that curbing these outflows could generate domestic resources to finance development and climate change adaptation.
The document provides background information on the Ninth African Development Forum being held in Marrakech, Morocco from 12-16 October 2014. The forum will discuss innovative financing for Africa's transformation, with a focus on five thematic areas: domestic resource mobilization, illicit financial flows, private equity, new forms of partnerships, and climate financing. The overall objective is to promote sustainable development financing and propose options for innovative financing to support Africa's economic transformation. The expected outcomes include strengthened partnerships and coordination for resource mobilization to finance development and climate change initiatives on the continent.
The document discusses Islamic finance and its growth. It provides details about a conference held by the National Bureau of Asian Research on Islamic finance in Southeast Asia. It summarizes the opening and closing keynote addresses which discussed linking Asia and the Middle East through sukuk markets, building a financial architecture through research, and managing regulatory challenges. The document also provides background on Islamic financial principles and the opportunities it provides through interregional linkages and new investment opportunities.
Investing in Africa successfully & sustainablyJames Mwangi
The document discusses key factors driving growth in Africa and areas of corporate social responsibility for successful and sustainable business in Africa. It outlines population growth, urbanization, infrastructure development, improved governance, and technology/financial inclusion as macroeconomic drivers of growth. Key growth sectors are identified as consumer goods, infrastructure, energy, mining, housing, manufacturing, and information/financial services. The document recommends that businesses focus on community sustainability, skills development, avoiding corruption, and environmental sustainability to ensure positive corporate social responsibility.
Sulaiman Liu's Speech on OIC Economy & Trade Forum 2016Sulaiman Liu
This document discusses opportunities for Islamic finance in the context of China's Belt and Road Initiative and the internationalization of the Chinese yuan. It outlines China's growing economic cooperation with OIC countries and initiatives like the Asian Infrastructure Investment Bank that are financing infrastructure projects in several Muslim-majority nations. The document argues that Islamic finance principles could help finance projects along the Belt and Road through instruments like cross-border yuan-denominated sukuk bonds. Overall, the author sees economic cooperation under the Belt and Road and yuan internationalization as a historically significant opportunity for closer China-OIC ties, where Islamic finance can serve as a catalyst.
1. 50 IFLR/October 2015 www.iflr.com
A
ccording to the United Nations,
over the past seven years Africa’s
growth rate has been consistently
above the global rate. That growth story
appears set to continue; by 2023, eight of
the fastest growing economies are
projected to be in Africa. For such rapid
growth to be sustainable, the continent
inevitably requires greater
industrialisation, which itself requires
significant infrastructural development
including both commercial (for example,
power plants and distribution networks,
roads, airports, rail and sea ports), and
social (for example, hospitals, schools and
agricultural projects) infrastructure. The
continent’s sizeable infrastructure gap
requires a significant amount of
investment – $93 billion according to the
World Bank – in order to sustain its
aggressive growth trajectory, and close the
gap with the rest of the world. At this stage
in Africa’s development, the principal
economic players in the infrastructure
sector remain governments, parastatals,
multilateral agencies, development
financial institutions and a limited number
of private sector companies.
Governments all over the world
generally finance their development and
infrastructure budgets through tax and
other revenues (including by borrowing
from the capital markets through the
issuance of various different types of
financial paper). Owing to the continuing
commodity price slump affecting the
extractive industries, African governments
are now receiving significantly less income
from their traditional base of natural
resources. As a result, alternative sources of
finance are required to fund capital
projects necessary to spur economic
growth and diversify their economies. The
uncertainty surrounding resource-based
income is unlikely to abate in the near
future, particularly given the slowing down
of the Chinese economy: China’s steady
growth had previously helped to push
demand for African resources to
unprecedented levels. In addition, it is
unclear whether and for how long the
short-term downward pressure on oil
prices due to the development of shale gas
in the US and elsewhere, as well as the
imminent arrival of Iranian oil into the
global markets, will continue.
In the past, African governments have
relied on traditional financiers such as
export credit agencies, multilateral
agencies, development financial
institutions, commercial banks and private
sector participants to cover their
infrastructure costs. However, traditional
sources of finance are finite and must fund
other sectors, beyond infrastructure. Given
the continent’s massive infrastructure gap,
the need to actively seek out alternative
funding sources has become
all the more urgent. As a
result, several African
countries have looked to
the eurobond market, both
for infrastructure
development and
otherwise. According to
Standard Bank, sub-
Saharan Africa saw a record
$15 billion in bond
issuances last year (of which $10.6 billion
were sovereign issuances). Similarly, in
recognition of the continent’s significant
Muslim population, and the considerable
financial strength of Asia and the Middle
East, there are a growing number of
countries preparing legal frameworks for
issuing sukuk and other shariah-compliant
instruments to attract investment from
those jurisdictions. We have already seen
debut sukuk issuances from Senegal (100
billion CFA francs ($208 million) in June
2014) and South Africa ($500 million
issue in September 2014).
In addition, and in spite of the effects of
the recent downturn in oil prices, many of
the Gulf Cooperation Council states have
sovereign wealth funds that, over the years,
have amassed significant wealth, which
may also be deployed either through
conventional financial products or shariah-
compliant instruments.
Africa’s sovereign sukuk
Rather than functioning as bonds which
provide a fixed and pre-agreed return to
the investor, sukuk are financial certificates
that allow an investor to share in the
profits deriving from the asset or activity
that has been financed. The growth of
sukuk as a financial instrument has
predominantly been driven by Muslim
countries, such as Malaysia and those that
make up the Gulf Cooperation Council.
The combination of a large Muslim
population and a well-structured shariah
banking system based on principles that
are generally agreed within the Muslim
community has enabled these countries to
issue almost all of the sukuk to-date in a
global market that is now in excess of $100
billion a year.
In comparison, sukuk issuances in Africa
remain very low, at less than one percent of
the global market. Although Gambia has
been issuing short-term Islamic paper in its
own currency for years, the debut issuances
by Senegal and South Africa established
sukuk as a credible additional market for
African governments, many of which have
now begun to adopt legal and regulatory
modifications to create a framework for
Islamic finance or shariah-compliant
instruments. The success of the South
African issuance (which was
oversubscribed by over four times) and the
recent Senegalese issuance, raised
specifically to fund developmental
projects, gives a strong indication of the
depth of the investor pool. Other African
countries are preparing to follow suit;
Ivory Coast, Tunisia, Morocco, Nigeria
and Kenya have all announced plans to
issue sukuk in the near future.
Multilateral Islamic financing
Multilateral lenders have also begun to use
Islamic finance instruments to fund
infrastructure projects in Africa. The
Islamic Development Bank (IDB) recently
provided a shariah-compliant tranche as
part of a much larger financing package for
a $2.6 billion coal-fired independent
power project near the port of Safi,
Africa’s funding
alternative
The continent accounts for less than one percent of
global sukuk issuance. This may be about to change
BANKING & PROJECT FINANCE ISLAMIC FINANCE
“
Uncertainty surrounding
resource-based income
is unlikely to abate in the
near future
2. www.iflr.com IFLR/October 2015 51
Morocco. It also provided a $50 million
facility to the Africa Finance Corporation
(AFC), itself a multilateral agency that
invests in infrastructure in the continent.
The inclusion of a shariah-compliant
tranche in the Moroccan power project
financing is significant in that it illustrates
the possibility of blending Islamic finance
with conventional finance facilities in the
context of a multi-sourced infrastructure
project. It is a model that may prove both
useful and popular, particularly in
countries with a proportionately high
Muslim population that have both high
demand for Islamic finance and a strong
(or developing) Islamic banking system.
Similarly, it is envisaged that the IDB’s
$50 million line of financing to the AFC
will be channelled toward developing
projects (particularly infrastructural and
agricultural endeavours) within IDB
member countries, several of which are
also AFC member states, in line with both
organisations’ goal of unlocking regional
economic growth potential.
Creating frameworks for
Islamic financial instruments
Unlike Asia and the Middle East, and
despite the considerable size of its Muslim
population, very little progress has been
made in Africa in understanding shariah
instruments, including their structural and
documentation requirements. If the right
frameworks are put in place, the
proportion of shariah-compliant
instruments used to finance development
projects in Africa will only increase.
Countries like Senegal, where the
population is over 95% Muslim and the
framework for sukuk issuance has been
successfully established and tested, stand
to gain most from the development of the
asset class. Although proportionately less
than that of Senegal, the size of Nigeria’s
Muslim population and its ever-widening
infrastructure gap also suggest that the
sukuk market could be an ideal funding
solution for the continent’s largest
economy. Nigeria also has introduced
several legal and regulatory reforms to
prepare a framework conducive to Islamic
financing requirements.
Several other African
countries have established,
or are in the process of
establishing, a framework
to gain access to investors
seeking to use shariah-
compliant investment
instruments. Tunisia’s
parliament, having passed
a law regulating sukuk late
in July 2014, has
announced plans to issue
the continent’s largest ever
sukuk programme by the
end of this year. Morocco
has also recently
implemented an advanced
securitisation framework
that includes the flexibility
to issue sukuk. This
legislation is already
strengthening the country’s
Islamic banking
infrastructure: two of Morocco’s biggest
banks, Banque Marocaine de Commerce
Extérieur and Banque Centrale Populaire,
plan to launch Islamic banking subsidiaries
and benefit from the new regime. The
continued growth of Islamic finance in
Morocco is likely to have a ripple-effect on
the rest of francophone Africa, where
Moroccan banks have extensive operations.
In east Africa, the populations of Kenya
and Uganda are around or above 10%
Muslim, while Tanzania’s Muslim
population is over 35%. The logical
presumption that these countries would
benefit from establishing a regulatory
framework that supports shariah financial
instruments is borne out in practice.
Kenya’s securities and equities regulator,
the Capital Market Authority, has recently
approved the
c o u n t r y ’ s
Capital Market
Master Plan.
This plan
includes the
development of
an Islamic
capital market
and provisions
for shariah-
compliant real-estate investment trusts as
part of a new REITS framework. First
Community Bank and Gulf African Bank,
the two principal Kenyan Islamic banks
which began operations in around 2008,
are both growing rapidly. Meanwhile,
Dubai Islamic Bank, one of the pioneers of
Islamic banking, is preparing to launch in
Kenya next year with a local partner in
what will be its first African operation
outside Sudan.
Tanzania’s Amana Bank, which describes
itself as ‘the first fully shariah-compliant
bank in Tanzania’, continues to grow.
According to a report last year by the IMF,
Uganda is also amending banking
regulations to allow for the creation of
Islamic banks, triggering licence
applications by three banks.
Apart from South Africa, there is not
much activity around Islamic financing in
the southern countries, mainly due to their
significantly smaller Muslim populations.
However, South Africa continues to adapt
its legislation to give itself even greater
access to Islamic finance.
South Africa’s Taxation Laws
Amendment Bill
Prior to its debut sukuk issuance last year,
South Africa spent over two years
amending the Income Tax Act 58 of 1962.
This was to allow for the issuance of sukuk
in addition to the three previously
recognised forms of shariah instruments
(the diminishing musharaka, the mudaraba
and the murabaha); and to align the
regulatory and tax treatment of sovereign
sukuk with that of its conventional
government bonds.
Following the deal’s success, the
Ministry of Finance, as part of its financial
budget, announced plans to extend the
reach of Islamic financing even further.
Previously, musharaka, mudaraba and
murabaha were described in the legislation
as arrangements open for participation by
members of the general public and were
ISLAMIC FINANCE
Countries that have issued
sukuk based on recent
legislative reforms
Nigeria (Osun State) (2013)
Senegal (2014)
South Africa (2014)
Countries establishing
legislation to issue sukuk
and/or introduce shariah-
compliant instruments
Egypt
Ivory Coast
Kenya
Mauritius
Morocco
Nigeria
Tanzania
Tunisia
Uganda
Deal and legislation update
“
Debut issuances by Senegal
and South Africa established
sukuk as a credible additional
market for African governments
3. 52 IFLR/October 2015 www.iflr.com
presented as compliant with shariah law
when members of the general public were
invited to participate. However the
Taxation Law Amendment Bill amends
section 24JA of the Income Tax Act of
1962 to extend sukuk financing
arrangements, and the related fiscal
treatment to listed entities in addition to
the government and its related entities.
The new definition of sukuk will be as
follows:
‘…a Sharia arrangement whereby:
• the government of the Republic [of
South Africa] or any public entity that
is listed in Schedule 2 to the Public
Finance Management Act disposes of an
interest in an asset to a trust; and
• the disposal of the interest in the asset
to the trust by the government or the
public entity contemplated in
paragraph (a) is subject to an agreement
in terms of which the government or
that public entity undertakes to
reacquire on a future date from that
trust the interest in the asset disposed of
at a cost equal to the cost paid by the
trust to the government or to that
public entity to obtain the asset.’
The proposed changes take effect in
2016 and will provide listed companies
with an alternative fundraising platform
that receives the same fiscal treatment as
conventional sources of finance.
Without the changes proposed by the
government, sukuk would remain fiscally
unattractive and inefficient from a costs
perspective given their asset-backed nature.
In practice, a successful sukuk issuance may
require multiple asset transfers, each of
which may result in a tax liability.
Accordingly, if the proposed changes to the
legislation were not put in place, the
considerable potential tax burden for
issuers of sukuk would have continued to
rule it out as a credible funding source.
The following additional amendments set
out in the Taxation Laws Amendment Bill
remove the tax liabilities associated with
disposals and transfers of real assets in the
context of sukuk:
‘…where any sukuk is entered into –
• the trust is deemed not to have acquired
the asset rom the government of the
Republic [of South Africa] or the public
entity that is listed in Schedule 2 to the
Public Finance Management Act under
the sharia arrangement;
• the government or that public entity is
deemed not to have disposed of or
reacquired the asset; and
• any consideration paid by the
government or that public entity in
respect of the use of the asset held by
the trust is deemed to be interest as
defined in section 24J(1).’
The changes that were initially made to
Income Tax Act 58 of 1962 allowed the
South African government to issue its
debut sovereign sukuk (and arguably could
have been interpreted to extend to
parastatal entities, such as South African
National Roads Agency, due to its
governmental status). However the
changes proposed by the Taxation Laws
Amendment Bill clearly aim to open up an
entirely new pool of finance to all listed
entities, by permitting them to issue sukuk
and removing any impediments to cost-
effectiveness relating to the transfer of
assets.
Looking ahead
While Islamic finance has seen some
progress in Africa over the last few years,
most of the work that has been done has
been preparatory, and African countries
have yet to reap the rewards for the seeds
that have been sown. Africa’s much-
publicised growth story continues to cast it
in a positive light, and the infrastructure
required to support such economic growth
will continue to provide ample
opportunities for investment from Asia
and the Middle East. This is particularly
the case when such investment is made
directly with, or comes with the support
of, governments that see continued
infrastructure development as critical to
the well-being of their countries.
While the capital markets infrastructure
for sukuk is developing steadily, best
practice for implementation of a
framework conducive to sukuk is
constantly evolving. It is therefore
imperative that the new frameworks being
developed by countries aspiring to enter
the sukuk market are consistent with
prevailing global market practice. Indeed,
any such framework should adopt and
reflect the standards and practices in those
countries where sukuk have been issued
successfully.
In contrast to the measured
development of Africa’s sukuk market, its
broader Islamic banking infrastructure is
far behind where it should be, particularly
considering the size of the continent’s
Muslim population. It is possible that the
amelioration of Islamic banking
frameworks through legal and regulatory
reform, and continued investment in
education around shariah-compliant
instruments, will combine to promote
Africa’s status as a credible investment
destination for Islamic finance. If so, and if
the continent manages to take even a
marginal proportion of a global sukuk
market that is in excess of $100 billion a
year, then Islamic finance could become a
significant source of additional funding for
Africa’s needs, including to help close its
infrastructure gap.
By Latham & Watkins partner Clement
Fondufe in Paris, partner Kem Ihenacho in
London and senior associate David Ziyambi
in London
Read online at iflr.com/Africashariah
ISLAMIC FINANCE
“
Growth of Islamic finance in Morocco
is likely to have a ripple-effect on the
rest of francophone Africa
IFLR“
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covers and the high quality and relevance of its
articles to an international practice.
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