Moro groups finalize plan to help develop Shari’ah-compliant microfinance in Mindanao

Three Moro organizations finalize their respective plans to help develop Shari’ah- compliant microfinance in Mindanao in their common will to help alleviate the target poor Bangsamoro communities from poverty.

The three groups namely Katiyakap, Inc., Kadtabanga Foundation and Federation of United Bangsamoro Women Multi-Purpose Cooperative, drafted their action plans during the culmination of their study tour in Indonesia from April 22 to May 1.

Katiyakap pioneered implementation of Shari’ah-compliant micro-financing in Socsargen area while Kadtabanga and FUBWMPC did the same in Maguindanao area. 

They acquired funding assistance from the Peace and Equity Foundation, an organization espousing social enterprise as a tool for poverty alleviation in the country.

PEF also sponsored the study of the three groups in Indonesia which included the representatives from the Bangsamoro Development Agency and Ulama sector.

The Kadtabanga staff said they will focus on operations manual development, resource mobilization, orientation with non-performing clients, and will discuss venturing on insurance mechanism and agricultural financing through Mudharabah (profit sharing) scheme.

The FUBWMPC will strengthen networking with other agencies and resource mobilization. It will also heighten advocacy on Islamic financing and support legislation for the institutionalization of Zakat.

Similarly, Katiyakap will find ways to improve its operation and engage in resource mobilization in order to cater more clients who wanted to get rid of interest-based financing which is forbidden in Islam.

The three organizations agreed to help in the institutionalization of National Shari’ah Advisory Council, an entity that will issue Fatwa on matters about Islamic banking and finance.

The BDA representative, Julhaina Kadon, was very thankful to be part educational tour where she learned the operation, technicalities, and benefits of Islamic financing particularly in improving the lives of poor Muslims.

Three Indonesian organizations, Dompet Duafa, Beringharjo at Tamzis Baitulmal wat Tamwil engaged in charitable undertakings and Islamic financing, shared their expertise and experiences.