(Business in Cameroon) - Cyrille Ngnang, mayor of Bafoussam 1 in the West region, took part in the "Community Days of Islamic Finance-Cemac," held in Yaoundé from April 22 to 26. "We've come with four colleagues to understand how it works. The municipality has significant projects, but we lack financial resources. If Islamic finance can provide us with funds and repayment flexibility, it will benefit our community," he said.

The event held under the theme "Mechanisms for Inclusive and Sustainable Development Financing of Decentralized Territorial Communities (CTDs) in Cameroon” aims to raise awareness among CTDs about understanding and mastering the Islamic finance process, addressing challenges faced by local territorial communities while strengthening local community resilience.

Louis Silvain Belibi Noah, president of African Islamic Finance Consulting (AIFC), the organizer of the community days, states that Islamic finance offers an alternative for municipalities struggling to access traditional financial markets. He emphasizes the role of CTDs in local economic development within Cameroon's ongoing decentralization process. One fundamental principle of Islamic finance, he explains, is the separation of Islamic banking activities from conventional banking.

"Islamic finance is a globally recognized financial system that prioritizes human interests. The conventional system encourages lending money for interest, whereas Islamic finance encourages people to work, earn money, and share profits," says Louis Silvain Belibi Noah. Islamic finance encompasses transactions and financial products compliant with Quranic law, prohibiting interest and speculation, investment in illicit sectors (alcohol, tobacco, gambling, etc.), and adhering to profit and loss sharing principles.

Islamic finance in Cameroon is still in its early stages. Only a few institutions like Afriland First Bank, Ecobank, and CCA Bank offer Islamic finance services. However, the government plans to open multiple lines of Islamic financing totaling CFA3 billion with local credit and microfinance institutions under its National Inclusive Finance Strategy (SNFI) 2023-2027, developed by the Ministry of Finance (Minfi).