CIFCA Profile 2023

When and how was CIFCA established?

The Center for Islamic Finance, Compliance and Advice (CIFCA) was established in the year 2010 to foster the growth of Islamic Banking and Finance in Tanzania.

The idea was formally rigorously discussed in 2008 when a group of Muslim intellectuals, sheikhs and Shariah scholars met at the Muslim University of Morogoro to discuss the potentialities, the need for, challenges and the best strategies for promotion of Islamic Banking and Finance in Tanzania.

The Center aims to promote financial inclusion in Tanzania and be the most comprehensive advice and knowledge support provider for the Islamic Financial Industry.

Why was CIFCA established?

The Center was established as a think tank of strategies to overcome challenges that were identified to face the Islamic Banking and Finance in Tanzania, that included:

• Lack of legal and regulatory framework for Islamic financial issues.
• Lack of Central Sharia’h Supervisory Board (SSB) to oversee and Guide individual SSBs working with financial institutions
• Inadequacy Supervision of Islamic Financial Institutions by the SSBs
• Lack of coherent relationship between Bank of Tanzania and Islamic Financial Institutions.

Without a proper supervisory framework, Islamic Financial Institutions may shapes and forms. surface in Tanzania in all

• Some may appear virtually identical to their conventional counterparts, while others might be markedly different;
• Some may be driven by sharia considerations, while others may be using religion simply as a way of attracting customers.

Other operational issues that CIFCA aims to address

Other operational challenges facing the Islamic banking and finance in Tanzania include:

• Lack of provider(s) of Arbitration and Advisory Services to assist those involved in shariah disputes (though so has been reported).
• Lack of qualified organs for Attesting, Rating and Confirming Products and Services to Islamic Sharia Standards and Principles.
• Lack of Qualified and Competent People to Work with the Islamic Finance Industry
• Lack of Adequate Number of Qualified and Competent People to Supervise Islamic Financial Institutions (SSB Members)
• Lack of Qualified Researchers and Consultants in the Field of Islamic Finance.

Stakeholders and the Public / Ummah are unaware of the meaning and rationale of Islamic Finance, how Islamic Finance differs from Conventional Finance and how does it operate and its possibility to ensure justice and spearhead development.