The Bourse Régionale des Valeurs Mobilières (BRVM) – West Africa’s regional stock exchange – is leading the way in developing Islamic capital markets on the continent.

With the launch of the shariah-compliant (Islamic law) equity index, developed in partnership with the Islamic Corporation for the Development of the Private Sector, the BRVM has become the first stock market for Islamic finance in Africa. This means, however, that companies related to gambling, breweries, pork production and processing, arms manufacturing and tobacco are automatically excluded.

According to an Asoko Insight report, the Sukuk index already has five listings issued by Côte d’Ivoire, Senegal and Togo amounting to US$1.3 billion, and is aimed at enhancing the attractiveness and liquidity of its Islamic bonds (particularly for individual holders), while also ensuring future issuances by West African Economic and Monetary Union member states.

1 November 2016
Image: Gallo/Getty Images