Banca Islámica: un modelo de financiación alternativo para el desarrollo en África/Islamic banking. An alternative financing model for the development in Africa

Because Islamic Banking forbids transactions that may harm the society as a whole, it's presented as a viable alternative to fund a different development model, that fits more naturally with African traditions, far away from inappropriate profits and speculation, and being able to replace the current banking system. However, this model is in an early development phase, despite its potential to adapt to the needs of poor population, not only Muslims. So, to expand along the whole continent, Islamic banking has to create development strategies in operational efficiency and risk management without losing the authenticity of the Islamic model that makes it suitable. Also, national laws, institutional capacities and product diversity are key factors to develop and implement this model. In this article we affirm that Islamic banking can foster the development of Africa at local and regional level. Therefore, we will analyze its features and potential, the obstacles it faces to, and the performance of this banking model where it's used.