Conference on "Innovative Sources to Finance Small and Medium-Sized Enterprises", February 2010, Dubai. 1

Introduction  Brief historical background  SA & SME Sector  Awqaf Investments  Prospects and Challenges  Recommendations 2

Brief historical background  Arrival of first Muslims  Banning and unbanning  Laws affecting Muslims  Socio-economic impact  Democratic era  Status quo of Waqf 3

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 4

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. 5

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

Promising SME Sectors in SA  Real Estate  Mining  Agriprocessing  Intellectual property development i.e. inventions in energy, pharmaceutical  Manufacturing  Services 7

Awqaf-Awqaf Collaboration  Property - infrastructure  Risk Finance Fund (Private Equity)  Microfinance  Islamic Merchant Bank  Asset finance 8

Awqaf – Awqaf Collaboration  Qard Hasan Loans  Joint Ventures  Partnerships  Syndications 9

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, qard hasan loans  Several promising SME sectors in SA  Several options for Awqaf-Awqaf Collaboration and Partnership 10