Published: June 20, 2012
South Africa is preparing to issue its debut sovereign sukuk, one of its treasury officials has told EMEA Finance.
The treasury is finalising the consortium to lead the process, Monale Ratsoma, the South African treasury’s chief director of liabilities, said in an emailed statement.
The sovereign aims to diversify its borrowing and set a benchmark to open the market for other South African entities.
Ratsoma says the government has yet to set any financial targets for this sukuk. “As a maiden transaction, we are looking to put our feet in,” he adds.
Last year the continent’s largest economy introduced tax neutrality laws and share-ownership rules to develop its Islamic finance market.
If sukuk is issued it would be the first such deal in sub-Saharan Africa, although Nigeria and Kenya’s governments are reported to be working on their own issuances.