ISLAMIC MICRO-FINANCE LINK BETWEEN ISLAMIC MICRO-FINANCE & MICRO-TAKAFUL

INTRODUCTION The world of microfinance is structured around two main axes: Banks, that manage the financing of the entire economy  through the support of investment and consumption, and; Insurance companies, that constitute in a way the back office of the financial sphere including banks which, without the support and assistance of the insurance and reinsurance companies, cannot resist the structural deficits that undermine them. The economic system nowadays is based on finance which itself cannot work without insurance. It is the lungs that allow the economic and financial body to breathe and flourish.  

ISLAMIC MICRO FINANCE ISLAMIC MICRO TAKAFUL DEFINITION DEFINITION A mechanism provide financial assistance to people excluded from the banking system. Islamic microfinance complies with principles of Islam and involves in projects halal (allowed by sharia). PRODUCTS Murabaha - is the Sharia-compliance contract the most commonly used to finance goods. Qard al hassan is a loan extended on a goodwill basis, and the debtor is only required to repay the amount borrowed Musharaka and mudaraba are contracts which share risks and benefits. Salam is an advance payment in exchange of a future delivery. So with all these financing tools. It should be noted that the Microfinance Institution is exposed to risks that could have negative consequences for its operation; as well as the potential beneficiaries of these financing. This necessarily requires a mechanism to manage all these risks. ISLAMIC MICRO TAKAFUL DEFINITION A mechanism to provide disadvantaged individuals or micro entreprises a sharia based protection at an affordable cost. PRODUCTS - Risks coverage - Sickness, death ,disability - Natural disaster, climatic changes - Fire or theft of assets - Loss of job … - Life insurance - Health insurance - Agricultural insurance Assets and property insurance… With the Islamic Insurance TAKAFUL more specifically the micro Takaful, the risks that the microfinance institute and its members will incur will be shared. So we can undoubtedly say that the micro Takaful is essential to the good functioning of the Islamic financial system. So its implementation is crucial before considering promoting Islamic microfinance banks or houses

CONCLUSION We can see that Islamic microfinance cannot go without the micro Takaful . The latter can serve as a lever for further penetration into the market, in compliance with the rules that govern this sector.

Presented by Dame MBAYE Founder and CEO of “OAC SA” (Brokerage in Insurance) Dakar, SENEGAL Mobile: 0022177-378-29-39 E-mail: dame@oac-assurances.org

IF ISLAMIC MICROFINANCE IS THE HOPE FOR THE POORS MICROTAKAFUL IS THE HOPE FOR ISLAMIC MICROFINANCE AS WELL ASSALAM WALEIKUM WARAKH MARULAH…..