(Ecofin Agency) - Lawmakers in Burkina Faso adopted a bill empowering microfinance companies operating in the country to offer Islamic finance solutions to their customers.

This new measure was taken on September 26 in amendment of law no. 023-2009/AN of May 14, 2009, which regulates decentralized financial systems. It outlines the modalities for microfinance institutions to engage in Islamic finance activities per the instructions of the Central Bank of the West African States, BCEAO.

According to the Finance and Budget Committee of the Transitional Legislative Assembly (ALT), the adoption of this bill will expand financing options for Burkinabe businesses and create a conducive environment for the development of new financial products.

Until now, only one microfinance institution was authorized to conduct Islamic finance-related activities in Burkina Faso –the Islamic Finance Group (IFG SA). The company officially launched this type of solution in early May 2023.

Let’s note that the conditions for the exercise of Islamic finance activities by decentralized financial systems of the West African Monetary Union were defined by the BCEAO in a March 18 directive.