The Circular Economy and Sustainable Development in Africa: Islamic Finance and the Transformation of the Rice Value Chain in the Gambia

This research aims to study the use of Islamic blended finance as an alternative financing tool to attract private sector participation and create a win–win platform for farmers, developmental partners, and the private sector. Also, to review how the circular economy concepts of ‘reduce, reuse, and recycle’ can be introduced to prevent environmental pollution from rice by-products by converting potential waste into wealth, creating employment, and, most importantly, advancing the sustainable development goals (SDGs). Due to the limited literature on Islamic blended finance, the study employed an exploratory research approach by examining scholarly articles, policy guidelines, conference proceedings, academic journals, newspaper articles, books, websites, reports, etc. and innovative financial engineering to propose a sustainable funding model. Our findings reveal that rice by-products can be important tools for wealth creation and catalysts for SDGs, rather than land and river filling, causing environmental pollution and health hazards. The Regional Rice Value Chain Program (RRVCP) can undoubtedly achieve food self-sufficiency within the stipulated period if things remain as predicted. Integrating the circular economy component will create additional value and promote income generation and employment creation through further waste processing into poultry feeds, renewable energy, cement, and fertilizer, and, most importantly, spur the attainment of SDGs in the Gambia. This chapter is expected to contribute to the literature, especially on Islamic blended finance and products. The study has several policy implications for the sustainability of the Regional Rice Value Chain Development Program (RRVCDP) and the SDGs, especially for Islamic Development Bank (IsDB) and regional partners.