(Business in Cameroon) – 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
