Research Article

Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia

Volume: 12 Number: 2 October 20, 2026
TR EN

Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia

Abstract

This paper's underlying aim is to design a strategy to develop an integrated Islamic-Crowdfunding-Cash-Waqf (ICFCW) Model for adopting IsMF services. Besides, it focused on exploring new channels for Islamic social finance towards fundraising with the employment of financial technology (FinTech). FinTech plays a central role in access to financial services and its use nowadays. This research targeted poverty alleviation by channeling funds through Islamic crowdfunding and cash waqf financial instruments for IsMFIs. Moreover, examining and validating the viability of the ICFCW model in Ethiopia is another focus of this study. Regarding the research methodology, a mixed-method design was employed. In particular, semi-structured interviews were conducted and analyzed using thematic analysis, and a case study was applied using the snowball sampling method. Accordingly, the analyzed survey data from the pilot case study revealed that the ICFCW model (equity-based financing) was ranked third, following PLS-based financing (Musharakah and Mudarabah) and Murabahah -based financing, which were ranked first and second, respectively. Additionally, the thematic analysis results show that the study findings, supported by many respondents, indicate a preference for the ICFCW model due to its novel approach to resource mobilization and its role as an alternative financial instrument, despite the low level of awareness of crowdfunding and cash waqf in the country. Thus, crowdfunding, particularly Islamic crowdfunding, is a relatively new concept in the Ethiopian financial industry. However, it has recently become popular for donation-based (charity) campaigns and is rapidly growing through social media platforms.

Keywords

Thanks

I would like to extend my sincere gratitude to the editorial team and reviewers for their invaluable cooperation and support throughout this journey. Your guidance and dedication have played a key role in the successful publication of this article. Thank you for being part of this meaningful academic endeavor.

References

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  2. Abdeldayem, M., & Aldulaimi, S. (2022). Developing an Islamic crowdfunding model: a new innovative mechanism to finance SMEs in the Middle East. International Journal of Organizational Analysis, (May). https://doi.org/10.1108/IJOA-02-2022-3159
  3. AbdulKareem, A. I., AbdulGaniyy, A., & Sadad Mahmud, M. (2022). Role of Islamic Finance in Supporting Economic Recovery in Nigeria Post-Covid-19 Pandemic. Li Falah: Journal of Islamic Economics and Business Studies, 7(1), 1–16. http://ejournal.iainkendari.ac.id/lifalah
  4. Abdullahi, A., & Othman, A. H. A. (2021). Financial inclusion enhancement through the adoption of Islamic microfinance in Nigeria. International Journal of Ethics and Systems, 37(3), 486–505. https://doi.org/10.1108/IJOES-02-2021-0040
  5. Adekoya, A. A. (2019). Crowdfunding and SME Financing in Nigeria- Threat and Opportunity. International Journal of Development Research, 09(09), 30091–30100. http://www.journalijdr.com
  6. Aderemi, A. M. R., & Ishak, M. S. I. (2020a). Crowdfunding as an Alternative Mode of Financing for Micro and Small Enterprises: A Proposed Qard-al-Hasan Contract. International Journal of Islamic Economics and Finance (IJIEF), 3(3). https://doi.org/10.18196/ijief.3235
  7. Aderemi, A. M. R., & Ishak, M. S. I. (2020b). Crowdfunding as an Alternative Mode of Financing for Micro and Small Enterprises: A Proposed Qard-al-Hasan Contract. International Journal of Islamic Economics and Finance (IJIEF), 3(3). https://doi.org/10.18196/ijief.3235
  8. Aderemi, A. M. R., & Ishak, M. S. I. (2023). Qard Hasan as a feasible Islamic financial instrument for crowdfunding: its potential and possible application for financing micro-enterprises in Malaysia. Qualitative Research in Financial Markets, 15(1), 58–76. https://doi.org/10.1108/QRFM-08-2021-0145

Details

Primary Language

English

Subjects

Islamic Microfinance

Journal Section

Research Article

Publication Date

October 20, 2026

Submission Date

July 27, 2025

Acceptance Date

April 8, 2026

Published in Issue

Year 2026 Volume: 12 Number: 2

APA
Shibu, A. A., & Gundogdu, A. S. (2026). Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia. Uluslararası İslam Ekonomisi Ve Finansı Araştırmaları Dergisi, 12(2). https://doi.org/10.54427/ijisef.1751928
AMA
1.Shibu AA, Gundogdu AS. Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia. IJISEF. 2026;12(2). doi:10.54427/ijisef.1751928
Chicago
Shibu, Adem Aman, and Ahmet Suayb Gundogdu. 2026. “Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia”. Uluslararası İslam Ekonomisi Ve Finansı Araştırmaları Dergisi 12 (2). https://doi.org/10.54427/ijisef.1751928.
EndNote
Shibu AA, Gundogdu AS (October 1, 2026) Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia. Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi 12 2
IEEE
[1]A. A. Shibu and A. S. Gundogdu, “Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia”, IJISEF, vol. 12, no. 2, Oct. 2026, doi: 10.54427/ijisef.1751928.
ISNAD
Shibu, Adem Aman - Gundogdu, Ahmet Suayb. “Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia”. Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi 12/2 (October 1, 2026). https://doi.org/10.54427/ijisef.1751928.
JAMA
1.Shibu AA, Gundogdu AS. Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia. IJISEF. 2026;12. doi:10.54427/ijisef.1751928.
MLA
Shibu, Adem Aman, and Ahmet Suayb Gundogdu. “Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia”. Uluslararası İslam Ekonomisi Ve Finansı Araştırmaları Dergisi, vol. 12, no. 2, Oct. 2026, doi:10.54427/ijisef.1751928.
Vancouver
1.Adem Aman Shibu, Ahmet Suayb Gundogdu. Integration of Islamic Crowdfunding, Cash Waqf, and Islamic Microfinance for Poverty Alleviation in Ethiopia. IJISEF. 2026 Oct. 1;12(2). doi:10.54427/ijisef.1751928

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