Musharaka-Based Microfinance by BoK ? IV

Livestock production is an important component of the local economy in Sudan, providing food, employment, foreign exchange earnings, a source of wealth, and supply of inputs and services, such as draught power, manure and transport. The livestock subsector however, faces numerous constraints, including a heavy disease burden, low productivity exacerbated by drought and insecurity, the…

Salam-Based Microfinance by BoK ? III

Salam has traditionally been understood as a mode of agricultural finance. Indeed, as scholars point out, one of the reasons why salam is admissible as an Islamic mode, even while violating the basic Shariah rule of “do not sell what you do not have”, is because of its economic significance.  It provides a mechanism to…

Islamic Participatory Microfinance by BoK ? II (Abu Halima)

The Abu-Halima Greenhouses Project of IRADA, designed in 2011, uses a composite model of intervention that combines several “smart” factors and is designed to address several critical social issues including lack of food security, unemployment and poverty. It aims to open new economic opportunities for young university graduates with formal education in agriculture. The project…

Islamic Participatory Microfinance by Bank of Khartoum

The name is now familiar among Sudan’s poor, unemployed and recent pass-outs from universities. The Irada program of Bank of Khartoum is experimenting with new and innvovative models of intervention to make a dent on chronic social problems, such as, poverty and unemployment. As part of the Sudanese economic system, it operates as a Shariah…

From Zakat Beneficiary (Mustahiq) to Zakat Giver (Muzakki) – 1

A question that is often asked in the context of the role of zakat and indeed, of all forms of charity and philanthropy in poverty alleviation is: Aren’t we making the poor dependent on charity? Aren’t we discouraging the poor from doing hard work and becoming economically active and productive if we continue to dole out cash period…

A Model of Economic Empowerment

While Islam strongly encourages charity from the giver’s point of view, it seeks to minimize dependence on charity from the beneficiary’s point of view and restricts the benefits to flow to the poorest of poor and the destitute, who are not in a position to generate any income and wealth. A famous Hadith[1] not only…