Financing female entrepreneurs in the informal sector in Comoros through zakat and WAQF: a proposed model

Purpose Female entrepreneurs in the informal sector in Comoros play an important role in the country’s economic development. However, they face challenges, particularly the lack of access to loans due to high interest rates and collateral requirements. This study aims to explore the potential of zakat and waqf as Islamic social finance instruments to finance female entrepreneurs in Comoros. In addition to that, this research proposes a model that integrates zakat and waqf funds with Mudarabah and Qard Hasan contracts for female entrepreneurs. Design/methodology/approach Using a qualitative approach, data were collected through a semi-structured interview and focus group discussions with seven Islamic social finance experts in Comoros. Findings The findings show that zakat and waqf can serve as effective tools to finance female entrepreneurs while promoting Shariah-compliant economic empowerment and alleviate the challenges faced in the conventional system. Furthermore, experts expressed strong support for the model, highlighting its alignment with the socio-economic objectives and its potential for long-term impact. Practical implications Recommendations are discussed to enhance the applicability of the proposed model. Social implications The study promotes Shariah-compliant economic empowerment of female entrepreneurs, which can contribute to inclusive and sustainable socio-economic development in Comoros. Originality/value This research contributes to the literature on Islamic social finance by addressing a practical financing gap in a developing economy. The research also contributes theoretically by linking zakat and waqf to gender-inclusive economic empowerment and practically by providing a feasible framework for supporting female entrepreneurs, with implications for enhancing financial inclusion and sustainable socio-economic development.