Regulatory Framework For Member-Owned Islamic Microfinance Institutions (MIMIS) In Sub-Saharan Africa (SSA)

Member-owned Islamic microfinance institutions have been toasted to be
the alternative means of financial inclusion among the Muslims who are
voluntarily excluded from participating in the traditional member-owned
microfinance institutions because of the interest they charge. This novel idea
is still new and little is known about its operations and regulations guiding its
operations. This paper surveys the practices of the common member owned
Islamic microfinance in Sub-Saharan Africa with a view of recommending a
regulatory framework for its operations based on these practices. This paper,
thus, proposes a number of regulations for the operation of both Islamic
Saving Groups and Financial Cooperative. It is hoped that these proposed
regulations will assist the operators, policy makers and donor agencies to
chat a way of improving the financial inclusiveness of the poor who are
excluded from benefiting from the available member-owned microfinance
institutions with a view to lift them out of poverty.