Islamic Specialized FinTech for Inclusive and Sustainable Growth in Sub-Saharan Africa

The COVID-19 health and economic crisis has worsened the rising inequalities in Africa and mounts more pressure on the continent’s already dwindling resources. In addition, the SDGs funding gap in the region compounds concerns for growth and sustainable development. Before the pandemic, the diffusion of technology in Africa, specifically the emergence of financial technology (FinTech), induced growth. This growth was not equitably distributed across socio-economic divides, excluding some groups from enjoying the dividends of digital transformation. For the Muslims in Africa, this exclusion is augmented by the scarcity of Islamic Finance (IF). With 30% (339 million) of the region’s people identifying as Muslims, there is an urgent need for inclusive growth models that serve all groups’ financing needs to accelerate the SDGs agenda. This study investigates the extent to which specialized fintech solutions have addressed SDG goals by solving multi-dimensional problems faced by Africa’s most vulnerable people. We find that their key strength lies in delivering services through a single mobile platform accessible to all regardless of their education, income level, geographical location, gender, and age. The study proposes the use of specialized FinTech models as an effective way for innovating IF products fit for increasing financial inclusion for the predominantly unbanked Muslims in Sub-Saharan Africa. The study then identifies the challenges that hinder the growth of these innovations and proffers recommendations to ensure that investment in the digital economy leads to inclusive growth and sustainable development for Africa.