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Waqf: Non-Interest Endowments for Community Development

Waqf is a Shariah-compliant endowment mechanism with enormous potential for financing education, healthcare, and infrastructure in Ghana.

Waqf (plural: Awqaf) is a voluntary, permanent endowment of assets for charitable or community purposes. Once dedicated as Waqf, an asset cannot be sold, gifted, or inherited — it is held in perpetuity for its designated purpose.

Types of Waqf

  • Khairi (Charitable) Waqf: Assets dedicated entirely for public benefit — mosques, schools, hospitals, water wells
  • Ahli (Family) Waqf: Assets whose income benefits the donor's family first, with any surplus going to charity
  • Mushtarak (Mixed) Waqf: Combines family and public benefit in agreed proportions

    • Waqf Assets

    Historically, Waqf was primarily land and real estate. Modern interpretations allow:

  • Cash Waqf (income from invested cash)
  • Shares in Shariah-compliant companies
  • Intellectual property
  • Agricultural land

    • Corporate Waqf in Ghana

    Several NIB banks in Ghana have established Corporate Waqf programmes, where a portion of bank profits are set aside for community development initiatives. This is an innovative structure in non-interest finance.

    Waqf and Infrastructure Finance

    Waqf has been used globally to finance:

  • University buildings and scholarships
  • Hospitals and clinics
  • Public libraries
  • Agricultural development
  • Affordable housing

    • For Ghana, a properly structured National Waqf Authority could unlock significant private capital for public infrastructure without government debt.

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