As Africa seeks to diversify its funding sources, Bahrain is positioning itself as a financial hub capable of connecting Gulf capital to the continent’s needs. Banks, Islamic finance institutions, investment funds and development bodies are mobilizing to structure solutions tailored to African projects.
Islamic finance is the first lever of this dynamic. A Standard Chartered report reveals that only 6% of global sukuk capital reaches South Asia and Africa, even though Islamic finance assets approach $6 trillion.
Bahrain, a pioneer in the sector with a proven regulatory framework, is ideally positioned to bridge this connectivity gap.
In May 2026, UNIDO launched the IFETAA program in Vienna, in partnership with the Bahrain Investment Promotion Office the first initiative dedicated to channeling Islamic finance toward African and Arab SMEs.
Designed with the Africa Finance Corporation and the Union of Arab Banks, the program aims to ease the conventional interest rates of 15–20% that stifle small businesses, favoring participatory instruments tied to the real economy.
Bahraini banks and funds are also expanding across Africa. iibGroup obtained authorization from the Ethiopian government to open a representative office in Addis Ababa a first for an international financial institution since the sector’s reforms.
The group, already present in Djibouti and Cape Verde, is supporting the Ethiopia-Djibouti trade corridor and infrastructure financing, including the future international airport.
In October 2026, Bahrain’s finance minister held structured discussions with Egypt to direct capital toward infrastructure, logistics and green hydrogen, mobilizing guarantees from the International Finance Corporation.
These initiatives are not without challenges. Gulf investments in Africa often favor large energy and mining projects over community needs for water and sanitation. But the trajectory is clear: Bahrain is not merely exporting capital it is building financial bridges.
For African project promoters, this gateway represents a concrete opportunity to diversify financing that has become scarce and costly.
