المستخلص: |
Interest free finance is receiving attention worldwide for its stability, reducing fragility and volatility. While interest-free finance has been documented in many regions of the world, little is written about its development in Africa. Muslim population in Africa cannot be underestimated, and most of them fall within the estimated poverty line. After investigating the status of interest free microfinance, we concluded that there seems to be a large un-met demand for interest-free microfinance products in Africa. Interest-free microfinance need to be considered as an unconventional solutions to specific financial needs that are unmet by today’s conventional microfinance services industry. The prospective of interest free microfinance in Africa is huge even without the need for a new Islamic microfinance policies and interest-free regulatory framework. We also suggest suitable mechanisms to extend finance via interest- free formula in conventional MFIs in Africa.
|