Sudanese, S/African pay more Zakah than Nigerians – Report
Nigeria is behind Sudan and South Africa in Zakah collection in 2013, a report by the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank Group yesterday revealed.
IRTI released the report during a conference on “Awqaf, Zakah and Ethical Microfinance as tools for Empowerment”, organized by the South African National Zakah Fund (SANZAF) in Pretoria, South Africa.
The report which was the second edition in the series estimated the annual zakah potential in Sudan, Nigeria and South Africa at about USD 1,843.51 million, (N362 billion) USD 8,776.45 (N1.7 trillion) and USD 178.87 million (N35 billion) respectively.
However, the actual collection in 2013 was USD 220 million, (N43 billion) USD 3 million (N591 million) and USD 100 million (N19.7 billion) respectively.
This edition of the ISFR focuses on the Sub-Saharan Africa, outlining the regional trends and prospects as well as proposing policy recommendations for the Islamic social finance sector, which includes zakah, waqf and Islamic microfinance.
It analyzed the regulatory environments and practices in six selected countries namely, Sudan, Nigeria, Kenya, Mauritius, South Africa and Tanzania.
Findings show that Sudan, Nigeria and South Africa can easily generate adequate resources for poverty alleviation through zakah, while Islamic social finance also has great potential for curbing poverty in the three other countries studied.
Key recommendations include enhancing the legal frameworks for Islamic social finance; institutionalizing zakah collection and distribution; offering unique microfinance products for smallholder farmers; and allowing waqf creation by non-Muslims.
In his comments on the report, IRTI Director General, Prof. Mohamed Azmi Omar said, “By focusing on SubSaharan Africa, we hope that this issue of the ISFR will satisfy a long-felt need for adequate and relevant information that will help towards instituting an enabling environment for the Islamic social finance sector in the region.”
Dr. Mohammed Obaidullah, who is the leader of the IRTI team that produced the report, represented the DG at the launching.