1. CREATION OF THE 1ST ISLAMIC MICROFINANCE INSTITUTION IN SENEGAL
8TH GLOBAL ISLAMIC MICROFINANCE FORUM, DUBAI, NOVEMBRE 2018
CREATION OF THE 1ST ISLAMIC MICROFINANCE INSTITUTION IN SENEGAL
Presented by Madame Oulimata DIOP
General Manager of the Waqf High Authority, Sénégal

2. SUMMARY
1- PRESENTATION OF THE PROJECT
2- FINAL OBSERVATION

3. PRESENTATION OF THE PROJECT
A. Title and location of the projet
Title of the project: Creation of the 1st Islamic Microfinance institution in Sénégal
Location of the projet : Nationwide
B. Bénéficiaries
They are the vulnerable targets of the Senegalese population (women, young people) who make up the majority of the population and who do not have access to credit.
C. Project Holder
The Waqf High authority(WHA)

4. PRESENTATION OF THE PROJECT
D. Description of the project
    Islamic microfinance does not exist in Senegal yet, where there is no Islamic microfinance institution, while 95% of the population are Muslim.
        The supply of micro-credit for the poor is made up only of traditional structures that practice usurious interest rates of 20% to 23%, this situation accentuates the poverty of the poor sections of the population, especially women who turn to these institutions to finance income-generating activities and install them in a cycle of chronic indebtedness.
        With this situation in mind, the Government of Senegal and the Islamic Development Bank (IDB) signed a framework agreement protocol on September 7, 2012 for the creation of the first Islamic microfinance institution in the country.

5. PRESENTATION OF THE PROJECT
D. Description of the project
This project for the creation of the 1st Islamic micro finance institution aims to develop a range of Islamic financial products and services to promote the empowerment of vulnerable targets of the Senegalese population (women, youth) and allow their financial and economic inclusion.
The Islamic microfinance institution will be a public limited company with a share capital of 5 billion CFA francs.
   The Islamic microfinance institution has the corporate name "Bouchra" which means luck.

6. PRESENTATION OF THE PROJECT
E. Involved Actors
STATE OF SENEGAL
Islamic Development Bank (IDB)
Islamic Bank of Senegal (IBS)
Union of Mutuals of the Parternership for the Mobilization of Savings and Credits (UM-PAMECAS)
Waqf High Authority (WHA)
Sovereign Strategic Investment Fund (SSIF/FONSIS)
Insurers

7. PRESENTATION OF THE PROJECT
F. Share Capital : 5 billion CFAF

8. PRESENTATION OF THE PROJECT
G. State of progress
Fixing of the share capital;
Closing of the shareholders’ round table;
And elaboration of most of the elements that must constitute the
applicatioin file for approval.
Completed deliverables
The draft statuts of the future Islamic Microfinance Company;
The graphic chart with the logo and the name of the Company;
The organization chart of the General Management and a typical agency;
The standard contracts for the distribution of Islamic products;
The description of the management and information system;
The business Plan;
The policies and administrative, financial and accounting procedures manual;
The leaders and staff training plan;
The shareholders’pact;
The recruitment of the General Manager is being finalized.
The last step is the release of the capital from the prospective shareholders to
constitute the Company.

9. BUSINESS PLAN : AGENCIES DEVELOPMENT NETWORK

10. BUSINESS PLAN : EVOLUTION OF THE CREDIT AND DEPOSIT liabilitiES

11. Business plan : EVOLUTION of the financial products

12. Business plan : EVOLUTION OF THE RESULTS AND SELF-FINANCING CAPACITY

13. BUSINESS PLAN : Evolution OF THE SHAREHOLDERS’ FUND

14. Balance sheet management
BUSINESS PLAN : Evolution OF THE PROFITABITY INDICATORS, BALANCE SHEET MANAGEMENT, PORTFOLIO QUALITY
INDICATORS A1 A2 A3 A4 A5
STANDARD
Profitability
Return on assets
-3% 1% 3% 4%
> 3%
Profitability of shareholders’ fund
-4% 9%
15%
> 15%
Operational self-sufficiency
84%
103%
124%
138%
136%
> 130%
Profit margin
-18%
14%
19%
> 20%
Balance sheet management
Asset liquidity ratio
34%
25%
22% 5%
> 5%
Capitalization ratio
70%
48%
35%
26%
20%
Portfolio quality
Portfolio classified as risky 2%
Provision rate for outstanding debts
30%
40%
45%
50%
> ou = 40%
Debts loss rate
0,12%
0,16%
0,20%
0,22%
<2%

15. PRESENTATION OF THE PROJECT
H. Expected Impacts
Promotion and development of Islamic Finance in senegal ;
Development of the supply of Islamic financial products and services adapted to the needs and conditions of the disadvantaged sections of the population;
Strenghthening the financial inclusion of the poor;
Creation of a lever to finance the empowerment of poor targets.

16. PRESENTATION OF THE PROJECT
Financing needs
The Waqf High Authority, solicits a donation to contribute up to 10% of the share capital of the 1st Islamic microfinance institution in Senegal.
It also seeks a refinancing fund for the institution that will be created to enable it to have resources to start its microcredits activities.

17. FINAL OBSERVATION
The participation of the Waqf High Authority in this project will enable it, through the monetary waqf, to fight against poverty through the empowerment of the poor.

18. THANKS
MADAME OULIMATA DIOP, GENERAL MANAGER OF THE WAQF HIGH AUTHORITY, SENEGAL