Senegal has officially launched the Islamic Microfinance Development Fund (FDMI), a major initiative aimed at expanding access to finance for small businesses and underserved communities. Announced on April 21 by Microfinance Minister Alioune Dione, the fund seeks to mobilize CFA200 billion (approximately $357.6 million) over the next five years to support around 300,000 projects, particularly in rural areas.
The FDMI is designed to channel Sharia-compliant financing into small and medium-sized enterprises (SMEs), as well as organizations within the social and solidarity economy. According to Abdou Diaw, head of the fund, the initiative will not only provide funding but also help structure and streamline financial flows to better serve these sectors.
The new fund replaces the earlier Islamic microfinance program “Promise,” which was launched in 2018 with support from the Islamic Development Bank. That program focused on empowering small businesses, women, and young entrepreneurs through Islamic finance models based on profit- and risk-sharing principles.
Its transition into a formal fund introduces stronger governance, improved oversight, and the potential for broader regional expansion. This shift reflects Senegal’s commitment to strengthening its Islamic microfinance ecosystem and increasing its impact on economic development.
Islamic finance presents significant opportunities to improve financial inclusion in Senegal, where nearly 94% of the population is Muslim. Despite this, Islamic banking assets accounted for only about 8.3% of the country’s total banking sector in 2024, according to the International Finance Corporation.
The launch of the FDMI aligns with Senegal’s broader efforts to develop the Islamic finance sector. The country introduced a legal framework for waqf (Islamic endowments) in 2015 and has issued several sovereign sukuk bonds, with a fourth issuance planned this year. These steps are helping to build a more inclusive financial system and support long-term economic growth.