In Chad, Islamic finance means the interest-free services that banks and microfinance institutions may offer with COBAC authorisation, under the regulation adopted in 2022 for the six CEMAC states, whose central bank is the BEAC.
A country where a bank account is still the exception
Chad has one of the lowest levels of banking in CEMAC: an analysis published in 2025 cited formal bank penetration below 3%, against more than 11% on average in the region. An interest-free offer could attract households that have stayed outside the banks.
Why religious conviction shapes demand
A large share of the population is Muslim and Arabic is an official language alongside French. Many traders and herders avoid interest-bearing credit and prefer rotating savings groups, savings held in livestock or family support to conventional bank counters.
A rural, informal economy that needs finance
Farming, herding and small trade employ most of the workforce, often with no kept accounts and no land title that could serve as collateral. Contracts backed by an asset or a harvest, rather than a balance sheet, fit this reality better than a conventional loan.
N'Djamena within the Islamic Development Bank network
Chad is a member of the Organisation of Islamic Cooperation and of the Islamic Development Bank group. The group finances Chadian public projects through contracts such as Istisna, Ijara or instalment sale rather than interest-bearing loans.
Why the rules are set at CEMAC level
Chad shares the Central African CFA franc with five other states, with the BEAC as central bank and COBAC as banking supervisor. Licensing an Islamic bank or window therefore depends on regional texts, not on a purely Chadian banking law.
What the 2022 COBAC regulation changes for Chadian banks
Since it took effect in 2023, the regulation allows Chadian banks and microfinance institutions to carry out Islamic activity, either as a dedicated institution or through a window. It requires prior COBAC authorisation and a committee responsible for checking product compliance.
An awareness workshop in N'Djamena in August 2023
On 10 August 2023, COBAC brought together banks, microfinance institutions, auditors and BEAC representatives in N'Djamena to present the framework. Licensing procedures, accounting standards, Islamic insurance, refinancing and taxation were among the topics discussed.
Tax questions still to be settled
A Murabaha requires the institution to buy the asset and then resell it to the client. Without specific relief, registration duties and taxes may be due twice, making the deal dearer than a conventional loan; this issue lies with the Chadian tax authorities.
What can a customer in Chad actually find?
The offer remains very limited and may change quickly. Before signing, ask whether the institution is among those authorised by COBAC for Islamic activity and which exact contract is used, since a marketing name does not guarantee compliance.
An Islamic bank project presented in 2025
In October 2025, the Nigerian group Finmal Finance presented to Chad's finance minister a project for an Islamic bank based on profit and loss sharing. Such a project still needs a COBAC licence before it can open to the public.
Salam and Murabaha for cotton, gum arabic and livestock
Salam allows a harvest to be paid for in advance and delivered later, which suits cotton or gum arabic producers. Murabaha finances stock or cattle purchases with a margin known at signing and no compounding penalty if payment is late.
Liquidity and refinancing, the missing link
An Islamic bank can neither place surplus funds on the interest-based interbank market nor refinance with the BEAC on the usual terms. Without regional Sukuk or a compliant liquidity facility, it must hold idle reserves that weigh on profitability.
Specialist external source
The BEAC website presents CEMAC monetary policy, regional financial statistics and the rules governing the liquidity of banks operating in Chad.