FSD Africa, in partnership with the Regional Council for Public Savings and Markets, says it is currently working to set up a regulatory framework dedicated to the Islamic capital market in the West African Monetary Union (UMOA).

The West African Monetary Union (UMOA) includes Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo among its member states. The envisaged Islamic capital market aims to support growth in the region and increase the financing of the Union's economies. This project will be carried out in three phases. The initial phase will involve carrying out an evaluation whose findings will support proposals for the development of a legal and regulatory framework adapted to the Islamic capital market in the Union. This evaluation will result in a report proposing a device that complies with Sharia standards and the principles of the Islamic Financial Services Board (IFSB), according to a press release received by our editorial staff.

FSD Africa provides technical assistance for the development of a roadmap, for the promotion of the regulatory framework and the organization of training workshops aimed at developing and strengthening the capacities of ecosystem actors. The UK-funded organization will then help CREPMF identify the relevant laws to be adopted to implement an Islamic capital market, including possible adjustments to be made. The local context will be carefully examined for each Member State of the Union, and relevant stakeholders will be invited to comment on the draft regulations, the note states

To successfully reform and promote Islamic capital markets, in the region, an action plan will be developed, along with an educational guide and a program to strengthen the capacities of stakeholders. The assistance of the FSD Africa agency is part of its ongoing program to strengthen African financial markets. The program focuses on developing capital market framework plans, conducting institutional capacity assessments, and developing sustainable finance capabilities, such as green bonds, to help markets adapt to their operational climate, the statement added