Global Halaal Economy and Environment Opportunities for SA Exporters 17 October 2017 ICC – Durban South Africa Presented By Bilal Jakhura – CIPA, CSAA, BCompt, MBA(UCT) Center for Islamic Economics and Finance South Africa – www.ciefsa.org

Agenda Islamic Economy Overview Islamic Economy Drivers Halaal Food Economy & Certification Environment Halaal Food and other Export Opportunities for SA Thoughts on the Way Forward

Global Islamic Economy Overview

Global Islamic Economy Overview

Global Islamic Economy Overview

Islamic Economy Drivers 1. LARGE, YOUNG AND FAST-GROWING GLOBAL MUSLIM DEMOGRAPHIC:  One of the strongest drivers for the continued growth of the Islamic Economy sectors is the fast growing, young, and large Muslim population worldwide. The global Muslim population is expected to rise from 1.7 billion in 2014 to 2.2 billion by 2030 (26.4 percent). By 2030, 29 percent of the global young population (15-29) is projected to be Muslim (Pew Research Center’s Forum on Religion & Public Life) 2. LARGE AND FAST GROWING GLOBAL ISLAMIC ECONOMIES:  The 57 mostly Muslim-majority member countries of the OIC had a GDP (PPP based) in 2015 of $17 trillion which represented 15 percent of the total global GDP (PPP based) of $113 trillion in 2015.  Even in a climate of slow global economic growth, these economies are growing at a faster rate than the global economy.

Halaal Food Economy

Halaal Food Export Opportunities for SA Processed and Unprocessed Meats Success stories Confectionary (Sweets, Chocolates, Biscuits) Products Dairy Products Organic Foods Opportunities for SA Retail Supermarket Chains

Halaal Food Certification Environment SA Halaal Food Environment is well developed and various certification bodies exist. Well known certification bodies include ffg among others: SANHA NIHT MJC Varying Standards present a challenge Need for adherence to minimum certification and quality standards – Opportunity to Develop Halaal Export Requirements (Case Study – New Zealand – Ministry for Primary Industries) Greater International efforts for Standardization and Harmonization needed. Individual Country requirements Accreditation of local bodies by International Bodies / Halaal Bodies in the import countries. Path to Market – Local + International Halaal Certification

Halaal Food Export Opportunities for SA

Other Halaal Economy Export Opportunities for SA Islamic Tourism Halaal friendly hotels (Prayer rooms, toilets) Halaal Boutique Hotels Muslim Friendly Airports Strategic alliances/interactions with Tourism boards of OIC countries Halaal Finance and Investment Marketing SA Islamic Finance Instruments to Middle East and SE Asia Using SA as a gateway to investment into African countries Halaal Property Fund Better marking of SA’s Islamic Financial Products in Middle East and South East Asia (eg. Malaysian Pension Fund) Pharmaceuticals Halaal health, beauty and lifestyle products

Ideas on Way Forward Creation of Halaal Hub Initiative Regular interaction between SA business and OIC member missions in SA Trade missions to OIC countries – especially Middle East Focus on African Trade Opportunities – eg. Zambia, DRC (optimum logistics into Africa) Partnership between Business and Certification Bodies Formation of Halaal Export Forum to Develop Halaal Export Guidelines

References and Sources Graphics - Global Islamic Economy Report 2016/17  Ismail Abd Latif, Zainalabidin Mohamed, Juwaidah Sharifuddin, Amin Mahir Abdullah & Mohd Mansor Ismail (2014) A Comparative Analysis of Global Halal Certification Requirements, Journal of Food Products Marketing, 20:sup1, 85-101, DOI: 10.1080/10454446.2014.921869

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