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Economic Brief - Islamic Finance: An Alternative Funding Source for the AfDB?
The global financial crisis threatens to engulf most part of the world – including Regional Member Countries (RMCs) of the African Development Bank (AfDB). Growth forecasts have been downgraded significantly in recent months save for a few African countries. Nagging questions being asked are: how deep and for how long these difficulties will continue, which countries will be most affected and what are the contagion transmission channels? What will this mean for long term efforts by agencies like the AfDB to promote growth and poverty reduction in Africa? Will the credit crunch turn into a development crunch, or are there alternative funding sources? How should all stakeholders respond? One area that requires careful thought and dialogue is Islamic finance.