African governments are considering sharia-compliant financing options after Benin’s successful $500 million sukuk issuance, which attracted over $7 billion in orders.
The West African country’s move is seen as a “turning point” for African sovereign borrowers, offering diversification in funding and attracting a broader investor base.
Experts say other countries, including Nigeria and Senegal, are exploring similar options, driven by growing demand for Islamic finance.
Benin’s sukuk, alongside a reopening of its 2038 dollar bond, saw combined orders exceed the proposed issuance size, highlighting the potential for African countries to tap into Gulf liquidity.
With African sukuk issuance rising to $3 billion in 2025, driven largely by Egypt’s $2.8 billion return, countries like Algeria are preparing for their first sukuk, establishing necessary legal frameworks.
