African markets are gradually opening to Islamic finance, buoyed by governments' debut sales of sovereign sukuk and legislative efforts to make the sector more attractive for companies across the region.

The agreement will also allow cooperation in structuring capital market deals including Islamic bonds, the institutions said in a joint statement.

The Ivory Coast and Niger are exploring the possibility of debut sukuk issues, after Senegal and South Africa tapped the market for the first time last year.

Afreximbank, which was founded by African governments and other investors in 1993 and focuses on trade finance, will seek to participate in syndicated transactions and investment funds alongside the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD).