The global Islamic finance sector, now valued at over USD5 trillion and spanning more than 80 countries, presents a significant yet underexplored opportunity for African corporates seeking diversified, ethical, and sustainable sources of capital. According to a new Standard Chartered report, Islamic Banking for Corporates: Broadening Horizons, the sector could unlock access to USD5.5 trillion in assets, projected to reach USD7.5 trillion by 2028.
Despite this growing potential, the report highlights a persistent corporate knowledge gap, with 65 per cent of firms interested in Shariah-compliant finance reporting limited understanding or prior exposure. This lack of familiarity, Standard Chartered argues, has become an increasingly expensive opportunity cost for businesses across emerging markets — including Africa — where Islamic finance is gaining traction as a mainstream investment and trade mechanism.
Khurram Hilal, Chief Executive of Group Islamic Banking at Standard Chartered, noted that the global expansion of Islamic banking has transformed it into one of the fastest-growing sources of capital, yet awareness among corporates has not evolved at the same pace. “Corporates that develop Islamic finance capabilities can access specialised capital pools worth trillions, benefit from competitive pricing in oversubscribed markets, and tap into ESG-aligned financing mechanisms,” Hilal said.
Beyond the financial sphere, Islamic finance shares deep philosophical alignment with environmental, social, and governance (ESG) principles. Both frameworks emphasise transparency, fairness, ethical conduct, and environmental responsibility. In 2024, sustainable Sukuk were oversubscribed by an average of 4.3 times, compared with 3.1 times for conventional Sukuk — signalling heightened investor appetite for assets that combine Shariah compliance with sustainability imperatives.
Africa’s growing Halal economy, valued at approximately USD2.2 trillion globally, stands to gain significantly from this momentum. From agribusiness to logistics, African enterprises are increasingly seeking access to Shariah-compliant finance as part of regional integration along the South-South trade corridors, which now account for nearly a quarter of global trade. According to Standard Chartered, Islamic finance underpins USD5.7 trillion worth of trade flows across the Gulf Cooperation Council (GCC), Southeast Asia, South Asia, and Africa.
Crucially, this financial model is not merely about faith-based transactions but about economic inclusion and risk-sharing. As digital innovation reshapes global banking, technologies such as tokenised Sukuk, blockchain settlements, and AI-enabled Shariah screening tools are transforming the sector. These tools are expected to reduce issuance costs, improve transparency, and enhance cross-border governance — areas that remain critical for African economies navigating the complexities of decolonising finance and expanding intra-African trade.
Standard Chartered, through its Islamic banking arm Standard Chartered Saadiq, is currently the only international bank offering a global Islamic banking franchise, operating across more than 30 markets and having arranged over USD200 billion in Islamic financing to date. Initiatives such as Halal360 — designed to facilitate Islamic trade finance and supply chain solutions — have already begun to connect African exporters to high-growth markets across the Middle East and Asia.
As boardrooms across Africa and the Global South increasingly integrate sustainability and ethical finance into their strategies, Islamic finance offers a pathway not only for financial growth but also for greater alignment with cultural and ethical frameworks long embedded in African traditions. The future of finance, the report suggests, may lie in rethinking access, participation, and purpose — where capital not only flows efficiently but also equitably across regions long marginalised in global finance.
