Developing a Waqf-Based model for modern healthcare services in Uganda

Abstract

Waqf, a pious endowment where a privately owned property is endowed for a charitable purpose in perpetuity and the revenue generated is spent for public welfare, is one of the greatest achievements of Islamic civilization. Over the centuries, public endowment has played a significant role in the provision of social goods (education, health etc), public goods (roads, bridges, and national security), commercial business, utilities (water and sanitation), religious services (building and maintenance of mosques and grave yards), helping the poor and the needy, creating employment and supporting agricultural and industrial sectors. This study has proposed a Waqf-based model for financing a construction and management of Waqf hospital and tower in Uganda. The overall aim of this model is to give the majority of the poor and the needy in Uganda affordable and better quality healthcare services. In the model, Uganda Islamic Endowment Corporation (UIEC) - a created Waqf institution, would raise fund for the construction of Waqf hospital and tower through seeking external donations, issuing Waqf certificates and Sukuk Al- Ijarah to donors and investors respectively. The hospital will offer better quality and affordable healthcare to the poor and the needy, and the tower will generate income to subsidise the costs of healthcare services. The study has used mixed research method (survey and interview) to explore the acceptability of the proposed model. Both the quantitative and qualitative findings of this study have revealed that Waqf stakeholders in Uganda have positive perceptions and attitudes towards the proposed Waqf-based model. In particular, various results have indicated that Waqf stakeholders will be more willing and able to support the construction of the proposed Waqf hospital and tower materially, financially, legally and morally. This is mainly because it is the best way to cooperate on social programme, to establish social justice and fulfill religious duties. Moreover, structural equation modeling results reveal that the intention of the Waqf stakeholders towards the model will be translated into actual financial and non-financial support. Overall, the stakeholders have accepted the model and it is expected that constructing the Waqf hospital and tower will be highly welcomed by the Muslim community in particular and the public in general. On the other hand results have shown that for the model to succeed, UIEC should create check and balance mechanism that will ensure transparency and accountability. The UIEC should be managed by independent board of directors who are knowledgeable, qualified, competent and honest, with high level of integrity, and above all have taqwa. The Ugandan government should provide all the necessary support to UIEC’s transparency and accountability mechanism to its stakeholders. Last but not least, the government should enact Waqf laws that will meet the requirements of Waqf institutions, similar to Waqf laws in Kenya, a neighbouring country.