Uganda is raising funds for the 2.7-billion-euro project, which has already won ⁠backing from lenders including the World Bank and the African Development Bank (ADB). Citibank has been appointed to help ‌mobilise financing.

Construction ⁠of the ⁠railway, which began in 2024, is being carried out by Turkish ‌firm Yapi Merkezi.

Apart from financing the crucial infrastructure project, ⁠IsDB has already consolidated its position as one of the African country’s biggest sources of external financing and, as of the end of May 2026, had projects in the East African country worth USD 896.5 million, government data showed.

The 272-km (169-mile) line will ‌reportedly link landlocked Uganda to Kenya’s rail network, ⁠providing crucial access to the Indian Ocean port of Mombasa, through which the African nation imports most of its goods.

Apart from the key funding support from Uganda, it is preparing to issue its first sovereign sukuk, which will partly address the African country’s financing requirements for the construction of a standard-gauge railway (SGR) linking capital Kampala with the Kenyan border town of Malaba.

Talking about Kampala’s upcoming maiden sukuk issuance, it will finance 15% of the estimated 2.7-billion-euro (USD 3.16 billion) cost of the SGR. Export credit agencies, on the other hand, are expected to provide 60% of the project financing, while development finance institutions (IsDB, World Bank, and ADB) would contribute the remaining 25%.

A month back, Deputy Treasury Secretary Patrick Ocailap launched a regional investor roadshow across East African Community (EAC) member states, including Kenya and Tanzania, to build the anticipation ahead of the sukuk issuance. However, not many details have emerged about the size or launch date of the sukuk.

Ocailap said, “The roadshow was intended to test the market, determine pricing and build investor relationships to ensure the success of the operation.” A delegation including representatives from Yusra Sukuk, the lead arranger for the transaction, as well as representatives from Stanbic Bank Uganda and the Bank of Uganda, was reportedly present during the investor roadshow.

While the railway construction contract was awarded to China Harbour Engineering Company in 2015, under an arrangement requiring the contractor to secure financing from the Chinese government, repeated funding delays since the last decade forced the Ugandan government to cancel the contract in January 2023. Authorities later signed a new agreement in October 2024 with Yapi Merkezi to build the connectivity between Kampala and Malaba.

Kenyan President William Ruto in March 2026 inaugurated construction works on a new phase of Kenya’s SGR linking Naivasha to Kisumu, with a later extension planned towards the Ugandan border. The standard gauge railway network has been the lifeline when it comes to travelling between Mombasa and Nairobi and onwards to Naivasha since 2019.

Over the longer term, Kenya and Uganda aim to extend the rail corridor towards Rwanda, South Sudan and the Democratic Republic of the Congo as part of efforts to strengthen regional trade and logistics integration across East and Central Africa.

The post Islamic Development Bank approves USD 746.2 million loan for Uganda’s railway project appeared first on International Finance.

According to Abdou Diaw, head of the FDMI, the fund will mobilize Sharia-compliant resources and channel them toward small and medium-sized enterprises (SMEs), as well as organizations in the social and solidarity economy. It has been designed both as a financing tool and as a mechanism to better organize financial flows targeting these segments.

The FDMI replaces the Islamic microfinance development program known as Promise, launched in 2018 with support from the Islamic Development Bank. The program had focused on financing Senegal’s small businesses, women, and young entrepreneurs through products based on Islamic finance principles, including risk and profit sharing. SMEs account for about 97% of Senegal’s economic structure, playing a central role in employment and value creation.

“Promise’s transition into a formal fund brings a stronger governance framework and a broader regional rollout aimed at increasing social and economic impact. The shift reflects a broader effort by the government to structure its approach to Islamic microfinance and expand its role in promoting financial inclusion and entrepreneurship,” reported Ecofin Agency.

Senegal, which has close to 95% Muslim population, Islamic banking assets occupy a small share of the overall financial system. However, the African country is trying hard to change it. In 2015, it adopted a legal framework for waqf, apart from issuing several sovereign sukuk bonds, with a fourth issuance planned in 2026.

In February this year, the Islamic Bank of Senegal (BIS) signed a 20-million-euro financing agreement with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group.

The agreement will expand BIS’s trade finance capacity, apart from supporting Senegal’s small and medium-sized enterprises. The funding also forms part of the five-year, 2-billion-euro framework signed in May 2025 between Senegal and the ITFC, under which, financing will target imports and exports of essential goods, including petroleum products and peanuts.

The ITFC will also mobilize 413.25 billion CFA francs for key sectors in Senegal, with the goal of supporting the African nation’s supply chains, hydrocarbon supplies, and the peanut sector.

The post Senegal launches FDMI fund to scale up microfinance sector appeared first on International Finance.

IsDB announced in a press release that the United States-based agency has confirmed its short-term issuer rating at Prime-1, the highest classification on offer. The statement also stated that Moody’s has rated IsDB AAA since 2006.

AAA-rated obligations are subject to the lowest level of credit risk and are considered to be of the highest quality, according to the agency. Prime-1 indicates the greatest ability to repay short-term debts.

IsDB, a multilateral development finance institution headquartered in Jeddah, was established in 1973 with a primary concentration on Islamic Finance for infrastructure development.

IsDB further stated that the affirmation is indicative of Moody’s belief that the capital position and asset performance of IsDB will continue to be robust. The bank’s preeminent position as one of the few regular issuers of highly-rated benchmark-size sukuk in the international capital markets, low funding costs, and strong liquidity and funding position all contribute to this expectation.

The financial institution also noted that its robust credit profile is a result of the track record of support from member countries, which has been demonstrated through a series of general capital increases.

In addition, IsDB stated that its leverage ratio is anticipated to remain substantially below the median for AAA-rated multilateral development banks, as a result of the capital increases.

Currently, the financial institution has 57 members, with Saudi Arabia being the largest single shareholder, accounting for 22.5% of the total capital. In the following order, Libya and Indonesia possess a capital share of 9.03% and 7.04%, respectively.

IsDB has been a provider of long-term, sustainable, and ethical financing structures to its member nations to facilitate economic growth and development since its inception.

“IsDB is staunchly dedicated to assisting its member countries in the pursuit of sustainable development and economic growth by means of these strategic initiatives,” the venture stated, adding that these investments not only satisfy immediate requirements but also establish the groundwork for long-term prosperity and resilience.

IsDB allocated USD 165 million in June 2024 for the construction and operationalisation of green, resilient, and sustainable schools in earthquake-prone and earthquake-affected regions of Turkey.

In the same month, it also allocated USD 156.3 million to Turkmenistan for the establishment of three oncology centres and the training of healthcare providers.

Additionally, IsDB allocated USD 47.68 million to Suriname in June to improve the country’s electricity transmission and distribution network.

The post Islamic Development Bank maintains AAA rating, sharpens focus on sustainable activities appeared first on International Finance.

11th August 2013

Nigeria, which has the largest population in the sub Saharan Africa is trying to establish itself as the African hub for Islamic finance. In recent months, a series of regulatory initiatives have set the groundwork for products such as Islamic bonds (sukuk), insurance (takaful) and other products, although there are only limited market participants.

Special advisor on non interest banking to the Central Bank Governor Bashir Aliyu Umar said “The potential is there but the market is negligible in Nigeria due to the presence of a single Islamic bank but it has potential to grow” he said. Islamic banking is currently offered by Stanbic IBTC, a unit of South Africa’s Standard Bank and Jaiz Bank. Jaiz Bank an unquoted public company owned by over 3000 shareholders with branches spread across the country now plans to obtain a national license and expand operations beyond Nigeria’s north, which is hit by Islamic insurgency. Despite such insecurities, Jaiz Bank has grown its branch network to ten from an initial three, with ambitious expansion plans to establish 300 branches by 2017. It has completed its capital acquisition in August, attracting investors such as the Jeddah based Islamic Development Bank. As of June, it had total assets of 20.6 billion naira ( $ 129 million) and capital of 10 billion naira. Sterling Bank has been granted approval in principle for an Islamic window, while two more lenders have expressed their interest in obtaining licenses to operate Islamic windows, according to a central bank official.

Nigeria which has a Muslim population of 80 million is a largely untapped market for Sharia banking, which forbids receiving or payment of interest. EFINA, a Lagos based development organisation estimated that 34.8 percent of Nigerian adults who did not use non interest banking products were likely to take them up if they were available. The banking sector, however, remains largely undeveloped, the report found that over 61.6 percent of adults borrowed from their families and friends, while only 5.6 percent of them used deposit taking banks and 9.9 percent used co-operatives. To induce more investment to Islamic banking, Sterling bank plans to rollout several products including a profit sharing account and other investment products. Sukuk could come to the market soon, after rules for their issuance were approved in March by Securities Commission. Osun State an inland state in south western Nigeria plans to issue Nigeria’s first sukuk bond, starting with 10 billion naira ($ 62 million), the planned 7 year paper would be the first sukuk bond to be issued in Africa’s second biggest economy and is a part of a 60 million naira debt rising programme by Osun State. The Osun bond will be issued through a book building process which will earn a return for sukuk holders through a semi annually paid rent structure called the Ijara, targeting pension funds and international investors on the bond.

Local credit agency Agusto & Co had assigned an ‘A’ rating to the note, which will be listed in the Nigerian Stock Exchange, Osun was waiting for the Securities and Exchange Commission’s approval to start marketing of the bond. The central bank has set up an advisory committee to regulate Sharia compliance, while the insurance regulator issued guidelines for Takaful operations.

The post Nigeria to Spread its Wings in Sharia Banking appeared first on International Finance.

11th August 2013

Nigeria, which has the largest population in the sub Saharan Africa is trying to establish itself as the African hub for Islamic finance. In recent months, a series of regulatory initiatives have set the groundwork for products such as Islamic bonds (sukuk), insurance (takaful) and other products, although there are only limited market participants.

Special advisor on non interest banking to the Central Bank Governor Bashir Aliyu Umar said “The potential is there but the market is negligible in Nigeria due to the presence of a single Islamic bank but it has potential to grow” he said. Islamic banking is currently offered by Stanbic IBTC, a unit of South Africa’s Standard Bank and Jaiz Bank. Jaiz Bank an unquoted public company owned by over 3000 shareholders with branches spread across the country now plans to obtain a national license and expand operations beyond Nigeria’s north, which is hit by Islamic insurgency. Despite such insecurities, Jaiz Bank has grown its branch network to ten from an initial three, with ambitious expansion plans to establish 300 branches by 2017. It has completed its capital acquisition in August, attracting investors such as the Jeddah based Islamic Development Bank. As of June, it had total assets of 20.6 billion naira ( $ 129 million) and capital of 10 billion naira. Sterling Bank has been granted approval in principle for an Islamic window, while two more lenders have expressed their interest in obtaining licenses to operate Islamic windows, according to a central bank official.

Nigeria which has a Muslim population of 80 million is a largely untapped market for Sharia banking, which forbids receiving or payment of interest. EFINA, a Lagos based development organisation estimated that 34.8 percent of Nigerian adults who did not use non interest banking products were likely to take them up if they were available. The banking sector, however, remains largely undeveloped, the report found that over 61.6 percent of adults borrowed from their families and friends, while only 5.6 percent of them used deposit taking banks and 9.9 percent used co-operatives. To induce more investment to Islamic banking, Sterling bank plans to rollout several products including a profit sharing account and other investment products. Sukuk could come to the market soon, after rules for their issuance were approved in March by Securities Commission. Osun State an inland state in south western Nigeria plans to issue Nigeria’s first sukuk bond, starting with 10 billion naira ($ 62 million), the planned 7 year paper would be the first sukuk bond to be issued in Africa’s second biggest economy and is a part of a 60 million naira debt rising programme by Osun State. The Osun bond will be issued through a book building process which will earn a return for sukuk holders through a semi annually paid rent structure called the Ijara, targeting pension funds and international investors on the bond.

Local credit agency Agusto & Co had assigned an ‘A’ rating to the note, which will be listed in the Nigerian Stock Exchange, Osun was waiting for the Securities and Exchange Commission’s approval to start marketing of the bond. The central bank has set up an advisory committee to regulate Sharia compliance, while the insurance regulator issued guidelines for Takaful operations.

The post Nigeria to Spread its Wings in Sharia Banking appeared first on International Finance.

18th June 2013

Tunisia has won a $ 1.2 billion in funding from the Saudi based Islamic Development Bank (IDB) with an aim to bolster its industrial, agricultural and other projects in the country whose finances have been in the doldrums since a revolution two years ago. The IDB funding will include loans and grants, sources from the Tunisian Prime Minister’s office said on Friday. The funding will be for 3 years, with disbursements of $ 400 million each year until 2015. The North African country is reeling with inflation, a huge external deficit and a weak political leadership. It has also signed a $ 1.7 Billion standby-loan agreement with the International Monetary Fund. Finance Minister of Tunisia, Elyes Fakhfakh has confirmed the agreement. The IDB has also given Tunisia a financial guarantee to issue a sukuk worth $ 600 million before 2014. Elyess FakhFakh said Tunisia planned to issue its first sovereign sukuk or Islamic bond this year to raise $ 700 million.

The Tunisian government is planning to develop Islamic finance in the country. Islam is the official state religion in the country which has a French speaking population of 6.35 million people. Muslims constitute 98 percent of the population in the country.

A Thomson Reuters study has found that the Islamic Finance Industry could take a 25 to 40 percent share of the country’s financial sector, provided necessary investment plans, consumer education and other plans materialize. Islamic finance was ignored by the Tunisian government; however in the wake of the 2011 revolution, the new Islamic led government is promoting the new industry. Critics argue that the government’s motives are more political than a government initiative to revive its failing economy.  Islamic finance could bring a lot of benefits to the country giving the country more access to a huge pool of investment funds from the Gulf.  Tunisian Prime Minister Hamadi Jbeli said “Tunisia is looking to become a regional centre in Islamic finance”. Jbeli is a moderate leader and a member of the Islamist Ennahda movement which leads Tunisia’s government after its President Zine al-Abidine Ben Ali was overthrown last year. Political rivals accuse the movement to garner fresh support of the people and avoid confrontations with hardline Islamists in parliamentary elections to be held early next year. However, Noureddine Bhiri, Minister of Justice and a prominent Ennahda leader rubbished the allegations and denied the Islamic Banking drive was a political game.

Quoting media persons he said “Turning to Islamic finance does not fall within the political propaganda. The Tunisian revolutionary government does not need propaganda to attract voters”

Islamic finance is based on Shariah principles and bans the payment of interest from the lender. Presently there are only two Islamic Banks in Tunisia, their total assets are worth 1.4 billion dinars ($ 893 million ) and just 2.5 percent of the combined assets of Tunisian banks as per the information obtained from Tunisia’s Central Bank. Central Bank Governor, Chadli Ayari said “Islamic Finance can accommodate large groups of Tunisian people who have not been absorbed by the traditional banks.” The North African country is planning to issue its first Islamic bond later this year.  Chaker Sultani director general of debt management and financial co-operation said “I expect the issuance process to take place by the second half of 2013”. Islamic Finance has been considered lately to be the remedy for the ailing economy of Tunisia which has been rocked by recession and political instability. The State budget deficit is expected to rise by 5.9 percent of GDP this year from 5.1 percent last year.

Zitouna Bank is the only Tunisian Bank offering Islamic financial products, the bank is owned by Sakher El Materi, son-in-law of former president Ben Ali who was overthrown on corruption charges after the Tunisian revolution. This has apparently weakened the growth of Islamic finance. Another obstacle to the development of Islamic finance in Tunisia is the current framework which needs to be adapted for Islamic finance, particularly within the tax system to meet the investment required in Tunisia for co-financing mechanisms and not traditional borrowing, so that funds and Islamic banks such as GFH or Zitouna would be able to provide financing based on participation to stimulate investment.

The post Tunisia gets $ 1.2 Billion Funding From Islamic Development Bank to ‘bolster’ its Economy appeared first on International Finance.

18th June 2013

Tunisia has won a $ 1.2 billion in funding from the Saudi based Islamic Development Bank (IDB) with an aim to bolster its industrial, agricultural and other projects in the country whose finances have been in the doldrums since a revolution two years ago. The IDB funding will include loans and grants, sources from the Tunisian Prime Minister’s office said on Friday. The funding will be for 3 years, with disbursements of $ 400 million each year until 2015. The North African country is reeling with inflation, a huge external deficit and a weak political leadership. It has also signed a $ 1.7Billion standby-loan agreement with the International Monetary Fund. Finance Minister of Tunisia, Elyes Fakhfakh has confirmed the agreement. The IDB has also given Tunisia a financial guarantee to issue a sukuk worth $ 600 million before 2014. Elyess FakhFakh said Tunisia planned to issue its first sovereign sukuk or Islamic bond this year to raise $ 700 million.

The Tunisian government is planning to develop Islamic finance in the country. Islam is the official state religion in the country which has a French speaking population of 6.35 million people. Muslims constitute 98 percent of the population in the country.

A Thomson Reuters study has found that the Islamic Finance Industry could take a 25 to 40 percent share of the country’s financial sector, provided necessary investment plans, consumer education and other plans materialize. Islamic finance was ignored by the Tunisian government; however in the wake of the 2011 revolution, the new Islamic led government is promoting the new industry. Critics argue that the government’s motives are more political than a government initiative to revive its failing economy.  Islamic finance could bring a lot of benefits to the country giving the country more access to a huge pool of investment funds from the Gulf.  Tunisian Prime Minister Hamadi Jbeli said “Tunisia is looking to become a regional centre in Islamic finance”. Jbeli is a moderate leader and a member of the Islamist Ennahda movement which leads Tunisia’s government after its President Zine al-Abidine Ben Ali was overthrown last year. Political rivals accuse the movement to garner fresh support of the people and avoid confrontations with hardline Islamists in parliamentary elections to be held early next year. However, Noureddine Bhiri, Minister of Justice and a prominent Ennahda leader rubbished the allegations and denied the Islamic Banking drive was a political game.

Quoting media persons he said “Turning to Islamic finance does not fall within the political propaganda. The Tunisian revolutionary government does not need propaganda to attract voters”

Islamic finance is based on Shariah principles and bans the payment of interest from the lender. Presently there are only two Islamic Banks in Tunisia, their total assets are worth 1.4 billion dinars ($ 893 million ) and just 2.5 percent of the combined assets of Tunisian banks as per the information obtained from Tunisia’s Central Bank. Central Bank Governor, Chadli Ayari said “Islamic Finance can accommodate large groups of Tunisian people who have not been absorbed by the traditional banks.” The North African country is planning to issue its first Islamic bond later this year.  Chaker Sultani director general of debt management and financial co-operation said “I expect the issuance process to take place by the second half of 2013”. Islamic Finance has been considered lately to be the remedy for the ailing economy of Tunisia which has been rocked by recession and political instability. The State budget deficit is expected to rise by 5.9 percent of GDP this year from 5.1 percent last year.

Zitouna Bank is the only Tunisian Bank offering Islamic financial products, the bank is owned by Sakher El Materi, son-in-law of former president Ben Ali who was overthrown on corruption charges after the Tunisian revolution. This has apparently weakened the growth of Islamic finance. Another obstacle to the development of Islamic finance in Tunisia is the current framework which needs to be adapted for Islamic finance, particularly within the tax system to meet the investment required in Tunisia for co-financing mechanisms and not traditional borrowing, so that funds and Islamic banks such as GFH or Zitouna would be able to provide financing based on participation to stimulate investment.

The post Tunisia gets $ 1.2 Billion Funding From Islamic Development Bank to ‘bolster’ its Economy appeared first on International Finance.