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…

Ensuring Shariah Compliance in Microfinance with New Modes: Case of Istijrar

About a decade ago, I came across a financial mechanism being used by Muslim Commercial Bank of Pakistan for financing cotton purchases. The New Horizon magazine had carried a 50-words brief write-up on it as an example of a new financial instrument. However, the brief description of the instrument was enough to whet my appetite…

Tackling the Cost and Affordability Issue in Microfinance: The RDS Experiment by IBBL

The high cost of microfinance has been a subject an intense debate in the industry. Some well-known MFIs in Latin-America are perceived to engage in profiteering. The leading critics of the Latin-American providers themselves charge a price, which is perceived to be too high by others. Indeed, there is little agreement on whether MFIs should charge…

Empowering Communities through Zakat: The Dompet Dhuafa Experiment

An alternative approach to poverty alleviation that is of more recent origin than the mainstream microfinance models is the community-driven-development (CDD) approach. CDD is a grant-based intervention. It approaches the poor as partners in the development process, rather than mere recipients, and builds on their institutions & resources. Its key elements include: (i) focus on…

From Conventional to Islamic: Experience of Centre for Women’s Co-Operative Development (CWCD)

“And covet not that whereby Allah has made some of you excel others. Men shall have a share of that which they have earned, and women a share of that which they have earned. And ask Allah of his bounty. Surely Allah has the perfect knowledge of all things” (4:32) It was easy to inform…

An Islamic Microfinance Program without an “Islamic” Label

It is a long-standing debate among contemporary Islamic banking and finance scholars and professionals. Should Islamic banking and finance should carry the “Islamic” label? A country with an avowedly Islamic identity resisted the “Islamic” label for the distinct model of banking and finance on the ground that this would amount to an indirect admission that…