Brother Yassir Salim - Presenting in one of CIFCA's Monthly Islamic Finance Debate.
The development of Islamic microfinance in Tanzania remains limited, and during one of the Islamic Monthly Debates, this concern was highlighted. It was emphasized that Islamic microfinance is not only charactirised by requirements for compliance with Shariah principles but also the other key characteristic is upholding to social mission by empowering the poor and financially marginalized. To achieve this, instruments such as zakat, waqf, and sadaqah should be integrated to support individuals who may not initially qualify for financing. The commentator cautioned that “If Islamic microfinance does not serve the most vulnerable, then we must question whether we are truly aligned with the objectives of Shariah,”.
Several initiatives are underway to expand Shariah-compliant microfinance institutions and SACCOS across the country, aimed at enhancing financial inclusion for low-income and underserved communities. CIFCA has played an active role by providing technical guidance, Shariah support, and public awareness, helping emerging institutions build capacity and align their operations with Islamic ethical principles.
Some of the active Islamic SACCOS include:
- TAMPRO SACCOS (Dar es Salaam)
- TAMPRO Tanga SACCOS
- TAMPRO Dodoma SACCOS
- ITISWAM SACCOS (Korogwe)
- TAAWUN SACCOS (Mwanza)
We expect more will come and take advantage of regulations and market maturity.
