3rd African Islamic Finance Summit" - Tanzania

Mr. Muhammad Zubair Mughal, Chief Executive Officer, AlHuda CIBE, while talking to the media said that increasing trend of Islamic finance events in Africa is evidence, that Africa is moving forward in this industry. This is quite a wrong conception that Islamic finance is only taking its roots in North African countries e.g. Tunisia, Morocco, and Algeria, etc., rather its potential exists in the whole of African continent. Islamic banking and finance is growing rapidly in Nigeria, Libya, South Africa, Kenya, and Morocco, while Egypt, Sudan, Tunisia have already taken good initiatives in the mentioned field. He said that there is also a rising trend of Islamic banking and finance in Senegal, Mauritania, Uganda, Tanzania, Ghana and Ethiopia.

Analyzing Islamic financial industry of Africa, he added that, according to estimates the total volume of Islamic finance in Africa is 78 Billion USD, which is less than 5% share of global Islamic finance industry. Out of that, Islamic Banking has 81% share, Islamic Fund 7 %, Sukuk 5 %, Takaful 6%, and Islamic microfinance has only 1% share in the African Islamic Finance Industry. While more than 96 Islamic banks, 29 Islamic Funds, 31 Islamic Microfinance Institutions and more than 41 Takaful companies are working over there.

He also emphasized that the increasing trend of poverty in Africa can be reduced by utilizing Islamic Microfinance methodology and the multilateral organizations e.g. African Development Bank, Islamic Development Bank, GIZ, IFAD and World Bank. These can play a pivotal role in this direction to achieve the goal of poverty alleviation and social development. Current economic conditions have further highlighted the need for Islamic banking and finance and African region would definitely take advantage of it.

It is to be noted that AlHuda Centre of Islamic Banking and Economics (CIBE) is an international organization, working for the promotion of Islamic banking and finance. It is working for education, training, advisory and consultancy with having footprints in UAE, South Africa, Uganda, Pakistan, Tanzania, Somali land, and Nigeria.

(Zawya / 03 May 2016)

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Tanzania: Needy People to Reap From Zakat

THE Wakf and Trust Commission Zanzibar authorities have started giving out tithes (Zakat) to the needy, as promised during the establishment of the Zakat.

No details were given on how much the commission collected and given to the needy, including assistance to the widows and children in schools. Zakat is a form of obligatory- compulsory, or, more recently, voluntary- alms-giving and religious tax in Islam.

As one of the Five Pillars of Islam, Zakat is a religious obligation for all Muslims who meet the necessary criteria of wealth. "Use the Zakat for the intended goal of getting you out of the difficulties," Sheikh Hassan Ali Kombo from the Commission told the beneficiaries and Ms Amina Hassan one the receivers expressed gratitude.

The Commission for Wakf and Trust Properties is a self-managed state institution established by Act No. 2 of 2007. The functions of the Commission includes managing: Wakf property; Trust property; and Estate of deceased Muslim.

The Commission also takes care of Islamic matters with regard to inheritance, Hijja (Pilgrimage), Sadaka (Charity) and Zakat (Tithes).

Furthermore, in the process of managing properties, the Commission administer tenancy agreements, collection of rent/debt; and estate management, development and maintenance of Wakf and Trust Properties.

(All Africa / 16 March 2016)

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Tanzania: NBC Expands Islamic Banking Products in Zanzibar

Zanzibar residents have something to celebrate following the introduction of more than 10 Islamic banking products that fit to businessmen, government employees and other people.

Speaking during an Iftar organized by the National Bank of Commerce (NBC) to its customers during Holy Month of Ramadhan at the weekend in Zanzibar, NBC Bank Head of Islamic Banking, Mr Nassir Masoud said people in the Isles have reasons to celebrate.

He said the establishment of Islamic banking inside the NBC as a product have made them to adhere to their Islamic creed based on the Quran.

He said NBC established Islamic banking product at NBC five years ago and encouraged a number of new customers in the Isles who were seeking to have and purchase new Islamic products offered by the bank.

"NBC will continue to offer most and affordable Islamic banking products in Zanzibar in order to make sure that we meet customer satisfactions and to boost the growing financial market in the country", he said.

He underscored that NBC has taken into consideration all of its customers such as employees, small and other medium business people by also introducing Islamic Affluent Current Account.

(All Africa / 13 July 2015)

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Tanzania: Islamic Insurance Services in the Pipeline - Tira Study

Dar es Salaam — Tanzania may have Islamic insurance services in the market if an on going study gathers enough evidence on the potential for demand and supply for the services in the country.

The Islamic insurance, Takaful, is based on Sharia - Islamic religious law - whereby members contribute money into a common pool to guarantee each other against loss or damage on the principles of mutuality and cooperation.

This would be the alternative to conventional insurance services. Almost a half of the Tanzanian population is Muslim.

The 2010 insurance annual market performance report released recently shows that the Tanzania Insurance Regulatory Authority (Tira) is conducting a study on viability of the introduction of Islamic insurance products and associated regulatory framework.Tira is collaborating with the Association of Tanzania Insurers (ATI).

The study also seeks to carry out a comparative study of Takaful insurance regulatory frameworks of selected jurisdictions where both Takaful and Conventional Insurance operations are regulated, with the view to identifying regulatory models that may be feasible for Tanzania.

"The study will also identify legislative and operational gaps as far as introduction of Takaful Insurance and associated regulatory framework in Tanzania is concerned and propose legal and regulatory initiatives to eliminate the gaps to be identified," reads the report in part.

Tira is also conducting a study on the awareness, perception, and use of insurance services by investors and business entities in Zanzibar.In 1985, Muslim jurists met in Jeddah, Saudi Arabia for seven days to discuss all types and forms of conventional insurance and resolved that "the commercial insurance contract is prohibited (Haraam) according to the Shariah."

The jurists also recommended that alternative contract which conforms to the principle of Islamic dealings is the contract of cooperative insurance (Takaful), which is founded on the basis of charitable donation and Shariah compliant dealings.

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Alfalah Consulting - Kuala Lumpur:
www.alfalahconsulting.com 
Islamic Investment Malaysia:
www.islamic-invest-malaysia.com