This October 2023 report by CDG evaluates the potential for integrating Zakat—a key pillar of Islam—into Somaliland’s social protection system. Conducted with UNICEF support, the study examines Zakat’s role in poverty alleviation and economic empowerment. Key findings include:
Zakat Sources: Individuals, businesses, and cooperatives contribute significantly to Zakat. However, a lack of structured systems limits optimal collection and distribution, creating untapped potential.
Management Challenges: Current management practices lack transparency, leading to distrust among contributors. Efforts to establish a formal framework, including a Zakat office under the Ministry of Religion, aim to increase accountability and efficiency.
Integration into Social Protection: Integrating Zakat with Somaliland’s social programs could provide consistent support to those in debt, the poor, and other vulnerable groups. Learning from Zakat frameworks in other Muslim countries offers valuable insights.
Recommendations: Suggestions include creating an independent Zakat committee, implementing accountability measures, and raising public awareness. Improved organization and a clear legal framework are essential to maximizing Zakat’s impact on poverty reduction.