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The conference held in Dubai on February 16-17, 2010, explored innovative sources of financing for small and medium-sized enterprises (SMEs) with a focus on Awqaf investments in South Africa. Discussions covered the historical context of Muslim integration, challenges faced by the SME sector, and case studies of successful Awqaf models. Attendees learned about the potential for growth in promising sectors like real estate, mining, and agriprocessing, emphasizing the need for supportive infrastructure and financial services, including interest-free loans and partnerships.
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Conference on "Innovative Sources to Finance Small and Medium-Sized Enterprises", 16-17 February 2010, Dubai. AWQAF INVESTMENTS AND THE SME SECTOR IN SOUTH AFRICAModels, Case Studies, Prospects, & Challenges
Introduction • Brief historical background • SA & SME Sector • Awqaf Investments • Prospects and Challenges • Recommendations
Brief historical background • Arrival of first Muslims • Banning and unbanning • Laws affecting Muslims • Socio-economic impact • Democratic era • Status quo of Waqf
SA & SME Sector • SA Economy • Major Challenges in SA • SME Sector status quo • Govt support & institutions • Challenges • Muslims in the SME sector • Potential for growth
Models of Waqf Investments in SA • Private-Public Charitable Trusts • Community – Private Partnership (Non Corporatised) • Community – Private Partnership (Corporatised) • Masjid Community Based; • Community Based Public Awqaf Foundation.
Case Studies of Waqf Investments in SA • Hajee Ahmed Mahomed Lockhat Wakuff 1933 • Waterval Islamic Institute 1934 • Rustenburg Mosque Plaza 1989 • Nurul Islam Plaza Ltd 1996 • Juma Masjid Trust 1890 • National Awqaf Foundation of South Africa 2001
Promising SME Sectors in SA • Real Estate • Mining • Agriprocessing • Intellectual property development i.e. inventions in energy, pharmaceutical • Manufacturing • Services
Awqaf-Awqaf Collaboration • Property - infrastructure • Risk Finance Fund (Private Equity) • Microfinance • Islamic Merchant Bank • Asset finance
Awqaf – Awqaf Collaboration • Qard Hasan Loans • Joint Ventures • Partnerships • Syndications
Conclusion • SA Waqf Economy still in infancy stage • Muslim SME sector needs support to grow into Blue Sky companies • Muslim SME sector needs infrastructure, financial services eg interest free credit, qardhasan loans • Several promising SME sectors in SA • Several options for Awqaf-Awqaf Collaboration and Partnership