The Dean of the Faculty of Economics and Management (FEM) at IPB University, Prof Irfan Syauqi Beik, was appointed as one of the speakers at the Islamic Finance Forum B20 (11/19). Prof Irfan provided input regarding the acceleration of sharia finance development on the African Continent.
Currently, it is in the hands of the South African government. One of the initiatives developed by South Africa in the series of G20 Summits is how to optimize the potential of sharia finance, including sharia social finance.
As part of the series of activities for the G20 Summit, the Islamic Finance Forum discussed a number of efforts to strengthen regulations and global cooperation related to sharia finance.
“I strongly welcome this initiative, considering South Africa is a Muslim minority country, but has an increasing awareness to develop the sharia finance industry, and has the potential to become a new sharia finance hub on the African Continent,” he said.
On that occasion, Prof Irfan also highlighted the importance of sharia finance. “With a funding need of USD 130–170 billion annually for infrastructure development to achieve the SDGs (Sustainable Development Goals) and to stimulate the economy to continue growing, the African Continent requires alternative efforts to meet these needs. The governments of African countries must continue to strengthen existing regulatory support, including the exploration of waqf,” said Prof Irfan.
In the discussion moderated by Ebrahim Patel (former Minister of Trade and Industry of South Africa), and attended by senior officials from G20 member countries and industry circles, it was agreed that discussions regarding sharia finance should become a regular agenda of the G20.
Moreover, the impact of sharia finance development is not only for the stability of the financial system, but also for the development of a fairer real sector economy. Among them is the role of sharia finance for the development of housing, transportation, logistics, energy, and the development of micro, small, and medium enterprises (MSMEs). (*/Rz) (IAAS/KMR)
