Africa turns towards sharia bonds

Islamic finance products are more and more being seen as a mainstream source of financing for governments and not as a niche product for Muslim communities. In December, Kenya banned fifteen NGOs accused of funding terrorism, as the country struggles to defend itself from attacks by the al-Shabaab terror militia based in neighboring Somalia. In 2013 a similar crackdown in the UK had 250 money transfer companies put on notice by Barclays Bank as part of a move to meet stricter money laundering rules. Somalia to date as no formal banking system and therefore relies on companies from abroad to send remittances.

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