The infrastructure gap, generally understood as the "investment required to enhance basic infrastructure to a level that is consistent with the sustainable development goals and projected growth levels", is nowhere more pronounced than in sub-Saharan Africa. The Boston Consulting Group/Africa Finance Corporation report of May 2017 states that the sub-Saharan Africa infrastructure gap amounts to about $100bn in yearly infrastructure investment. Countries in this region are losing 2.1% of annual GDP growth due to inadequate infrastructure. Economic and social development, poverty alleviation and advancement towards the UN sustainable development goals, the ultimate drivers of infrastructure development, are fundamentally aligned with the faith-based ethical principles underlying Islamic finance. Traditional project finance techniques deployed in infrastructure financing are also compatible with the recognised Islamic modes of financing. The shariah prohibition on accrual of interest o...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.