IslamicFinance.de

Ethiopia's central bank aims to develop Islamic finance to help expand financial access and inclusion. The country has one of the highest economic growth rates in Africa, but relies heavily on an agricultural sector that employs three-quarters of the workforce. According to Getahun Nana, Vice Governor of the National Bank of Ethiopia, the government wants to industrialize its economy but this requires sustaining investment rates of almost 40% of GDP over the next five years. Islamic finance could help in this endeavor, so the central bank is conducting a study to determine the demand for sharia compliant financial products. Islamic finance is still new in Ethiopia. Currently 8 out of 18 financial institutions offer sharia compliant products via Islamic windows but they have so far mobilized less than 1% of total deposits.