During a
general meeting held on September 30, 2024, in N'Djamena, Chad, shareholders of
the Central African States Development Bank (BDEAC) voted in favor of launching
an Islamic finance window. According to the official statement from the
meeting, this new financial tool aims to diversify and enhance the bank's
resources.
Alongside its
conventional financing, which has supported development projects in CEMAC
countries since 1975, the Islamic finance window will expand BDEAC’s
capabilities. It aims to attract and distribute funds to states and businesses
while complying with Islamic law.
Unlike
conventional finance, Islamic finance prohibits interest (riba), speculation,
excessive uncertainty, and unlawful activities. Instead, it focuses on funding
tangible assets, measured risk-taking, profit and loss sharing, and Sharia
compliance, according to the BDEAC's statement.
A 2023 report
by Islamic finance consultants Abbas Abdul Karim Cherif and Abdul Rahaman Fifen
revealed growing interest in Islamic banking in CEMAC countries, particularly
Chad, Cameroon, and Gabon. The first Islamic finance window in the region was
opened in 2015, sparking increased interest from other credit institutions.