Five African countries (apart from Mali earlier this year) will issue sukuk (Islamic bonds) in H2, 2018, Ecofin Agency learned from a report published by Moody’s.  

These are namely Kenya, Morocco, Ghana, Tunisia, and Algeria. These issuances are aimed at mobilizing alternative resources to fund some infrastructure projects.

Moody's estimates that despite a decrease in bond issuances in H1, 2018, the volume of sukuk was between $90 billion and $100 billion, close to its level in H1, 2017.

This funding mechanism should offer an alternative to the parties in an international context marked by the commercial war started by Trump, an increase in USA’s interest rates and its good performances as well as the suspension of ARAMCO’s IPO, and a strengthening of Turkey president’s grip on power that led to huge capital flight to emerging markets.

Idriss Linge