Assessing the role of Islamic microfinance: a women empowerment case study:

Aja Fatou Senghore

doi:10.13135/2421-2172/7939

Aja Fatou Senghore Academic

DOI: https://doi.org/10.13135/2421-2172/7939

Keywords: Economic empowerment, Women empowerment, Islamic microfinance, Women vegetable producers, Gambia

Abstract

The main objectives of this paper are three-fold. First, to identify the barriers to financial independence of female vegetable producers in the Gambia. Second, to assess the potential use of Islamic financing modes as enablers that can capacitate women in the Gambia’s horticultural sector. Finally, it proposes an inclusive financing mode to empower women in the country’s horticultural sector. To achieve these three objectives, different methodological approaches were used, drawing on various data collection techniques, including primary and secondary data collection methods. The results from the study indicate that lack of irrigation and storage facilities, access to markets and farming inputs (seeds, fertilisers) are the main challenges women encounter in their gardening activities. The study further found that the benefits of accessing and using microfinance services are impeded by these challenges, thereby preventing women vegetable producers from upscaling their horticultural activities. However, it is established in the paper that microfinance has great potential for promoting the financial independence of women in the Gambia, particularly women who engage in the horticultural sector. Based on these findings, the paper recommends using Parallel Salam Contract to tackle the problems of irrigation, storage facilities and market access. Murabahah/Musawamah contracts are also suggested to tackle the issue of the lack of farming inputs used by women in the horticultural sector. We further recommend that Islamic financial institutions educate the public about their business activities and for the regulators, including the Central Bank of the Gambia, to establish a Central Shari’ah Board to ensure the unification of fatwahs in the emerging Islamic finance sector in the Gambia, thereby ensuring transparency in the activities of the financial institutions participating in this sector and thus encourage more investors to partake in this burgeoning part of the Gambian economy.

References

Addae, J. (2015). Effect of Microfinance on Women’s Empowerment. Journal Of Arts And Social Sciences, 13(8), 1–15.

African Development Bank (2011). Islamic Banking and Finance in North Africa – Past Development and Future Potential (Oxford: Oxford University Press).

AfDB. (2018). African Economic Outlook. Online]. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-

Alsagoffn et.al. (2016). Empowering the poor through Islamic microfinance: Experience of the Bank of Khartoum in Value Chain Project Financing in Sudan, Jeddah: IRTI.

Al-SHAMI, et.al. (2016). The Effect of Microfinance on Women’s Empowerment: Evidence from Malaysia. Asian Journal of Women’s Studies, 22(3), 318–337.

Ahmad, H. (2002. Financing microenterprises: an analytical study of Islamic microfinance institutions. Islamic Economic Studies 9 (2), pp.27-64. https://search.emarefa.net/detail/BIM-108626.

Alsop, R., & Heinson, N. (2005). Measuring Empowerment in Practice: Structuring Analysis and Framing Indicators. New York: World Bank.

ANR. (2015). ANR Policy Report, Agriculture and Natural Resources Policy, Banjul: The Republic of The Gambia.

Cattaneo, L. B., & Chapman, A. (2010). The Process of Empowerment A Model for use in Research and Practice. American Psychologist, 65(7), 646–659.

CBG. (2019). Central Bank of The Gambia. Central Bank of The Gambia. www.cbg.gm/finance_systems/banking.htm

CBG. (2017). Central Bank of The Gambia. Central Bank of The Gambia. www.cbg.gm/about/history.htm

Doss, C. R. (2006). The Effects of Intrahousehold Property Ownership on Expenditure Patterns in Ghana. Journal of African Economies, Volume 15, 149–180.

Drammeh, S. (2017). The opportunities and Barriers in the Education of Women in The Gambia. Mendel University in Brno Faculty of Regional Development and International.

Elsheikh, S., & Elamin, E. S. (2013). Women’s Economic Empowerment and Poverty: Lesson from Urban Sudan. The Business and Management Review, 194–199.

Ernst, & Young. (2014). The promise of microfinance and women’s empowerment: What does the evidence say? London: EY.

GBoS. (2012). Gambia Bureau of Statistics and GAMJOBS, The Gambia Labor Force Survey, Banjul.

Izzani, U., & Kassim, S. (2018). Empowering Women Through Islamic Microfinance: Experience Oo BMTBeringharjo. JEBI. Journal Ekonomi Dan Bisnis Islam, 90–102.

Gummerson, E. and Schneider, D. (2013). Eat, Drink, Man, Woman: Gender, Income Share and Household Expenditure in South Africa. Social Forces. Vol. 91, No. 3 (March 2013), pp. 813-836.

Kaberr, N. (2001). Reflections on the measurement of Women’s empowerment; In Discussing Women’s Empowerment-Theory and Practice. Swedish International Development Cooperation Agency, 3, 17–57.

Karim et.al. (2008). Islamic Microfinance: An Emerging Market Niche, Washington, D.C. World Bank

Obaidullah, M. (2008). Introduction to Islamic Microfinance. India. International Institute of Islamic Business and Finance (IBF).

OECD (2020). How Islamic Finance Contributes to Achieving the Sustainable Development Goals. OECD Policy Paper. Paris:

OECD Publising. Retrueved July 23, 2023, from https://www.sdgphilanthropy.org/system/files/2020-07/OECD_Islamic%20Finance.pdf

OECD (2011). Women’s Economic Empowerment. OECD Issues paper April. Paris: OECD Publishing. Retrieved July 21, 2023, from https://www.oecd.org/dac/gender-development/47561694.pdf

Plaza, F. (2015). Gambia-horticulture-key-area-of-growth /www.freshplaza.com/article/2135520/gambia-horticulture-key-area-of-growth/

Saad, N. M., & Duasa, J. (2010). Determinants of economic performance of micro-credit clients and prospects for Islamic microfinance in Malaysia. ISRA International Journal of of Islamic Finance. 113–130.

Sanyang, S. E., & Huang, W. C. (2008). Micro-financing: Enhancing the Role of Women’s Group for Poverty Alleviation in Rural Gambia, World Journal of Agricultural Sciences, 4(6), 665–673.

Shirazi (eds) et.al. (2014). Microfinance and women’s empowerment: a case study of Pakistan’s microfinance institutions. Islamic Microfinance for Sustainable Development. Jeddah: IRTI,IDB, 85–99.

Supersonics Company Limited, (2015). Annual Report and Financial Statements for the period ended 31st December, Banjul: Supersonics Gambia Limited.

Supersonics Company Limited. (2017). Annual Report and Financial Statements for the period ended 31st December, Banjul: Supersonics Gambia Limited.

Supersonics Company Limited, (2016). Annual Report and Financial Statements for the period ended 31st December , Banjul: Supersonics Gambia Limited.

The Government of The Gambia. (2018). The Gambia national Development Plan 2018-2022, Banjul: The Gambia.

https://gambia.un.org/en/98394-national-development-plan-2018-2021