The performance of Islamic microfinance in Mauritania: an empirical analysis of the PROCAPEC case (2019–2023)

Abstract

Islamic microfinance has progressively emerged in Mauritania as an ethical alternative to conventional financing, particularly for populations excluded from the formal banking system on religious or socio-economic grounds. This article empirically assesses the financial and social performance of PROCAPEC, the country's pioneering mutualist Islamic microfinance institution. Drawing on a longitudinal study (2019–2023) of three representative savings and credit cooperatives (CAPECs) — Arafatt Centre, Nouadhibou Nord, and Néma — combined with an institutional analysis of the whole network, we adopt a qualitative, descriptive approach based on semi-structured interviews, document analysis, and quantitative performance indicators. Findings confirm growing social outreach (membership multiplied 5.7-fold between 2007 and 2023), sustained savings mobilisation (MRU 947.9 million at end-2023), and a resilient credit portfolio. Full Shariah compliance, based predominantly on Murabaha contracts, strengthens institutional legitimacy. However, digital lag, weak diversification of participatory contracts, and persistent urban–rural asymmetry constrain financial inclusion, calling for technological innovation, Shariah-compliant financial engineering, and the integration of Islamic social finance instruments.