ABSTRACT

Sub-Saharan Africa (SSA) is currently confronted with a significant infrastructure deficit, exacerbated by the adverse effects of the COVID-19 pandemic. As the deadline for the United Nations (UN) 2030 Sustainable Development Goals approaches, it becomes imperative to identify alternative funding sources for vital infrastructure projects in the region. Consequently, this research investigated the potential of sukuk, a form of Islamic finance, as an alternative means of financing infrastructure development in SSA. Drawing upon Lee's socioeconomic conditions theory, this study reveals that states in SSA can draw insights from the experience of Malaysia and adopt innovative sukuk-type bonds to generate the necessary funding for critical infrastructure. Additionally, the chapter evaluated the necessity of establishing a supportive framework to facilitate sustained private-sector investment in infrastructure.