House of Zakat secures IDB funding for Islamic social finance

The Islamic Development Bank (IsDB) has announced a $120,000 (Shs 446.4 million) grant to House of Zakat and Waqf Uganda (HoZWU) for a campaign to build a sustainable Islamic social finance ecosystem in Uganda.

“The grant aims to upgrade and enhance the knowledge and skills of HoZWU, enabling it to better serve the Muslim community in Uganda. Recognising the urgent need for a comprehensive study to modernise its practices and integrate new technologies,” IsDB said in a statement.

Under the grant, House of Zakat and Waqf Uganda is expected to conduct studies to assess the current status of social finance initiatives and determine effective strategies for enhancement.
“By empowering House of Zakat and Waqf Uganda through this initiative, the project aims to foster the growth and prosperity of Islamic Social Finance across Uganda,” the state added.

This funding represents a significant step forward for House of Zakat and Waqf Uganda as it seeks to innovate and improve its service delivery to the community, ultimately contributing to the broader goal of social finance development in the region.
Islamic social financing mechanisms, such as Zakat among other forms of alms and charity including interest-free loans are considered to be key in the realisation of the Sustainable Development Goals (SDGs) as they aim at improving communal or individual well-being by giving monetary assistance.
House of Zakat and Waqf Uganda is a local Muslim not-for-profit organisation established to manage and administer Zakat (obligatory dues) and preserve Waqf (endowment) in accordance with the teachings of the Holy Quran, Hadith, consensus, and analogy. Its mission is to promote social wellbeing and Islamic development.