Yom Institutes of Economic Development

Joint Masters Program with

Debre Markos University

The Role of Zakah On Poverty Reduction In Addis

Ababa Ethiopia

By: Lula Mohammed

Advisor: Habtamu Adane(PHD)

Co-Advisor: Asmare Workneh

MSc Thesis Submitted to Debre Markos University and Yom Institute of Economic
Development

A thesis submitted to the Department Project Management of Debre Markos

University and Yom institute of economic development, in partial fulfillment for the
requirements of Masters of Science Degree in Project Management and Planning.

December, 2018
Addis Ababa, Ethiopia
 DECLARATIONS

I Lula Mohammed, registration number/I.D. number GRS\509, do here by declare that this thesis
is my original work and that it has not been submitted partially; or in full, by any other person
for an award of degree in any other university /institutions.

Submitted By:

Full Name Lula Mohammed Signature__________________ Date 10/01/18

Approved By:

This Thesis has been submitted for examination with my approval.

Name of Advisor Dr Habtamu Adane Signature_______________ Date ___________

2
 APROVAL

The undersigned certify that they have read and hereby recommend to Debre Markos University
and Yom Institute of Economic Development to accept the Thesis submitted by Lula
Moahmmed and entitled “The Role of Zekah On Poverty Reduction in Addis Ababa Ethiopia” in
partial fulfillment of the requirements for the award of a Masters Degree in Project Management
and Planning.

Submitted By:

Full Name Lula Mohamed Mahimmud Signature__________________ Date_____________

Approved By:

Name of Advisor Dr Habtamu Adane Signature___________________ Date_______________

Name of Internal Examiner_________________ Signature_______________ Date___________

Name of External Examiner________________ Signature _______________Date____________

Name of Head of Department______________ Signature ________________Date___________

3
 ACKNOWLEDMENTS

First of all, I would like to thank ‘Almighty Allah’, the most gracious, the most merciful, who
made it possible for me to begin and finish this work successfully.

I also would like to thank you for my husband Mohamednur sualih, my sister Semira Afendi and
her husband Jemal Ahmed and the whole family and friends particularly Rumana Said I am
highly grateful to them for their advice, encouragement, and support.

I am also thankful to my colleague Sosina Obse for her information to join YOM,
encouragement and support. I would like to convey my special thanks to Kedja Mohammed for
her help, encouragement and cooperation during the data collection.

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 Table of Content

ABSTRACT____________________________________________________________________X

CHAPTER ONE__________________________________________________________________1

INTRODUCTION________________________________________________________________1

1.1. Background of the study_______________________________________________________1

1.2. Statement of the problem______________________________________________________2

1.3. Objective of the study_________________________________________________________4

1.3.1. General objectives__________________________________________________________________4
1.3.2. Specific objectives__________________________________________________________________4

1.4. Research Questions___________________________________________________________5

1.5. Hypothesis of the Study________________________________________________________5

1.6. Significant of the Study_________________________________________________________5

1.7. Scope of the Study____________________________________________________________6

1.8. Limitation of the Study_________________________________________________________6

1.9. Organization of the Paper______________________________________________________6

CHAPTER TWO_________________________________________________________________7

INTRODUCTION________________________________________________________________7

2.1. Theoretical literature review______________________________________________________7

2.1.1. Poverty____________________________________________________________________________7
2.1.2. Zakah_____________________________________________________________________________7
2.1.3 Zakah and poverty alleviation___________________________________________________________8
2.1.4. Religion and development____________________________________________________________10
2.1.5 Islamic Economics___________________________________________________________________11
2.1.6 Conventional definitions and approach of poverty_________________________________________12

2.2 Empirical literature review_______________________________________________________13

2.3 Conceptual frame work__________________________________________________________14

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CHAPTER THREE_______________________________________________________________16

REASERCH METHODS___________________________________________________________16

3.1. Introductions_________________________________________________________________16

3.2 Data Source, Data Collection and Techniques________________________________________16

3.3 The process of data collection_____________________________________________________16

3.4 Sampling______________________________________________________________________16

3.5 Data Analysis__________________________________________________________________17

CHAPTER FOUR________________________________________________________________18

RESULT AND DISCUSTION_______________________________________________________18

4.1 Introduction___________________________________________________________________18

4.2 Actors________________________________________________________________________18
4.2.1 Remitters__________________________________________________________________________18
4.2.2 Beneficiaries_______________________________________________________________________22
4.2.3 Non Beneficiaries____________________________________________________________________25

CHAPTER FIVE_________________________________________________________________28

CONCLUSIONS AND RECOMMENDATIONS__________________________________________28

5.1 Conclusions____________________________________________________________________28

5.2 Recommendations______________________________________________________________29

Reference____________________________________________________________________30

6
LIST OF TABLES

Table 1: Work plan

Table 2: Characteristics of zekah Remitter

Table 3: Characteristics of zekah recipient and who deserve zekah but not receive

Table 4: Characteristics of source of income and perception of zekah on non beneficiary

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LIST OF APPENDEXES

Appendix 1: Amharic Beneficiaries Questionnaire

Appendix 2: Amharic Remitter Questionnaire

Appendix 2: English Beneficiaries Questionnaire

Appendix 2: English Remitter Questionnaire

8
LIST OF ACRONYMS/ABBREVATIONS

GNP: Growth National Product

IFAD: International Fund for Agriculture Development

IMF: International Monetary Fund

ILO: International Labor Organization

MDGS: Millennium Development Goal

NGO: None Government Organization

PBUH: Peace be up on him

PRS: Poverty Reduction Strategy

UN: United Nations

UNDP: United Nations Development Program

SWT: Subahne Watala

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ABSTRACT

Recent interests in poverty alleviation activities have gone beyond normal mechanisms to
include religious dimension in their undertakings. In response to such initiatives, the main
objective of this research was to explore the extent to which the religious practice, Zakah,
contributes to poverty alleviation in the city of Addis Ababa. Its findings are based on primary
data from questionnaires for both side of remitter, beneficiaries and none beneficiaries and
secondary data from related books, Quran and Hadith. By analysis of obtained data proposed that
initial assumption that role of Zakah to eliminate poverty. However, it also found that it has some
limitations that might affect its potential. In general, it concludes that Zakah does contribute to
poverty alleviation in Addis Ababa and further suggests some ways of revising the practice so as
to boost its role as a poverty alleviation tool.

______________________________________________________________________________

Key words: Zekah, poverty, religious

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 CHAPTER ONE
INTRODUCTION
1.1. Background of the study

Poverty is a problem as old as the human existence itself. This has been a cause of concern in
every society and throughout the history. During current era poverty came under public interest
and has been a focus of international community. It is one of the most enveloping and dangerous
problems faced by humanity today. Millions of human souls on this planet are living under
extreme poverty and very inhuman conditions which is quite alarming.

The World Bank estimates that approximately 3 billion people are living in poverty and 46 mil-
lion more people will come under the income level of US$1.25 a day due to the recent global
economic meltdown and slow economic growth rates (Ali and Hatta 2014; World Bank 2010)

As per the United Nations Development programmer’s Human development Report 2015
Ethiopia is amongst the poorest countries in the world, with a very low human-development
ranking, or 174th out of 188 countries about 23 million Ethiopians live in conditions
substantially below the basic poverty line and food insecurity remains a major challenge.

In general Poverty is a serious economic, social, and political issue all over the world particularly
in the developing world. Parties from various organizations, such as the United Nations (UN),
Islamic relief and World Bank are working hard to eradicate poverty with all kinds of activities.

As per the Quran and Hadith the five pillars of Islam help to bring income equalities to all levels
of society together through zekah. It is a religion that has a theoretical framework at guides its
followers to observe and adopt as a system of life. It provides a basic of guidelines of living
one’s life and within this, there is a very detailed concept of ethical and social behavior which
clearly shows that concept of sustainable development has a role in Islam. It understands of the
above that represent the unique characteristics of the Islamic economic system as opposed to the
conventional economy. One of the uniqueness of the Islamic economic system is the requirement
to pay zakah it translated as purification and growth. Muslims are obligated to pay zakah, one of
the five pillars of Islam. It provides as one important instrument to solve social economic
problems. In fact, Zakah has benefits for consumption and also have benefits for productivity,

1
which give capital ability to attempt independently and improve quality of life of recipients
(Mohammed, 2007; Lewis, 2001).

1.2. Statement of the problem

Poverty is irritation at individual as well as community level. It threats to humanity at whatever

levels it exists. The World Bank (2008) defines poverty in terms of basic needs. It implies a state
whereby the resources at the disposal of an individual are insufficient to meet his basic needs:
food, shelter and clothing. It is also translated to mean powerlessness, indicating lack of the
ability to express one’s view locally and nationally. People are referred to as poor when their
estimated standard of living is below the poverty line, i.e. less than one dollar per day (Mukhtar,
2008). Briefly, poverty means lack of basic needs and services such as food, clothing, beddings,
shelter, basic healthcare and education.

The World Bank estimates that approximately 3 billion people are living in poverty and 46
million more people will come under the income level of US$1.25 a day due to the recent global
economic meltdown and slow economic growth rates (World Bank 2010)
Most of the developing nations experience widespread poverty, which often leads to diseases,
epidemics, starvation and death. In the past few decades, millions of people were hungry as a
result of famine in such countries like Ethiopia, North Korea, Somalia and Sudan. The World
Bank estimates that approximately 3 billion people are living in poverty and 46 million more
people will come under the income level of US$1.25 a day due to the recent global economic
meltdown and slow economic growth rates (World Bank 2010). Around 27-28% of all children
in developing countries are estimated to be underweight or stunted. Africa accounts for 90% of
the death rate due to malaria (UNDP, 2007). Based on the enrolment data, about 72 million
children of primary school age in the developing world were not in school in 2005; 57% of them
were girls (MDGS’ report, 2007).
As per Ethiopian e-jornal indicates that Ethiopia is one of the poorest countries in the world
where low income and productivity, weak capital accumulation and investment, high levels of
unemployment and underemployment are the main features of the economy. The agrarian based
subsistence economy has been subject to the vagaries of natural forces and it could not achieve
sustained economic growth or structural transformation. When an economy finds itself in such a
situation, chronic poverty and vulnerability defines life for the majority of the population. It

2
takes structural change and fundamental reforms to enable economic agents realize their eco-
nomic potentials and improve their productivity and generate improvement in living standards.
(Ethiopian E-Journal Vol5,No1,2013)

Poverty alleviation has been one of the foremost objectives of the development programs in
many developing countries of the world for the last several decades. Considerable researches
have been carried out on the issue of poverty alleviation and its long run social economic effects
in developed as well as in developing countries. The concern of the world over the issue of
poverty alleviation is revealed in the two international reports published by IFAD (2001) and
ILO (2003). Poverty as a global disease can take economic, social, political and environmental
dimensions. Each dimension is mutually linked to the other. Lack of enough income to feed,
shelter and educate oneself may translate into such social ailments as deprivation, frustration,
discrimination, illness and illiteracy. The implication of all these is political powerlessness and
invisibility (AbdulQadir, 2004)

Zakah is an important institution in the socio-economic framework of Islam (Kusuma and

Sukmana 2010; Muhamat et al. 2013) which is being underutilized for poverty reduction in many
poor Muslim countries, though, is considered as third pillar of Islam. The main objective of
zakah is to achieve socio-economic justice (Wahab and Rahman 2011). It is considered as an
effective divine tool for alleviation of poverty because Islam which a part is to be paid every year
to the poor as their right. There is a minimum amount of property to be owned in order to qualify
as payer of zakah. It will be payable only if one owns the property beyond that limit. This limit is
called nisab(beik and Baga, 2011). Nisab is a minimum amount that becomes due to be paid
every year.

Previous study argues that zakah can assist a country to alleviate poverty as well as enhance the
standard of living of the poor and the needy. Zakah has been described as an instrument of
poverty alleviation and this is proven true as it is properly managed and efficiently distributed
among the poor and the needy. It is further argued that zakah is used to generate income and
make the recipients become more economically self-reliant (cited in Anita., 2011). The finding
of the study carried out by Ahmad Fahme., (2013) in Kelantan, Malaysia, shows that zakah
positively contributes to alleviate poverty among the poor and the needy in Kelantan. According
to Obaidullah (2012), zakah is a powerful instrument of poverty reduction in Islam and truly the

3
early history of Islamic societies show the possibility of broad alleviation of poverty with the use
of zakah. The sunnah of Prophet Muhammad (pbuh) has clearly mentioned that “Indeed Allah
(s.w.t) has made zakah obligation on the wealthy Muslims that can alleviate poverty. It is not
possible for the poor to suffer hunger or lack of clothes unless it is caused by tight-fisted wealthy
Muslims …” (cited in Obaidullah, 2012). as a result, it can be deduced from this sunnah that with
proper distribution of zakah, the problem of poverty can become history in a Muslim society.
Similarly, the more the availability and well distribution of zakah is, the lesser the level and
incidence of poverty

Bello (2009) and Akgunduz (n.d.) argue that zakah and waqf are both necessary tools in Muslim
society or country to ensure socioeconomic balance and to resolve the problem of social
disorder. They further stress that poverty and related socioeconomic problems facing a given
society, especially the Muslim society, can only be eliminated through the adoption of Qur’an
injunctions that are related to giving zakah, social assistance and mutual help, almsgiving,
observing due daily prayers, abstaining from usury and interest. With proper implementation of
most of the teachings of Islam, it is believed that poverty problem in particular and the
socioeconomic problems in general, would be alleviated in Muslim societies.

Zekah has also functioning for all obligatory Muslium sociality in Addis Ababa for every year,
unfortunately we couldn’t find researches done so far on the role of Zakah on the lives of the
Beneficiaries in case of Addis Ababa. So the objective of this thesis is to address this issue.

1.3. Objective of the study

1.3.1. General objectives

The general objective of the paper is to evaluate the contribution of Zakah towards poverty
alleviation in Addis Ababa

1.3.2. Specific objectives

 To examine the role of Zakah in reducing poverty.

 To assess the practice of zakah in Addis Ababa
 To know the use of the Zakah money by beneficiaries in Addis Ababa

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1.4. Research Questions

The main research question the study to be answer is:-

1. Is there a significant relationship between the amounts of zakah Money received and the
level of poverty reduction among the poor Muslim in Addis Ababa Ethiopia?
2. The following sub questions are meant to be pathway to answer the main research
question:
3. How is the role of Zakah on alleviating poverty in Addis Ababa?
4. What are the challenges in eradicating poverty through Zakah?
5. Who are the actors involved in the practice of Zakah? How is the money collected and
distributed?
6. How is targeting of beneficiaries conducted?
7. What is the Zakah money used for and who are the beneficiaries?
8. Who has made it out of poverty and How?

1.5. Hypothesis of the Study

There is a significant relationship between the Amount of zakah money received and the level of
poverty reduction among the poor Muslim in Addis Ababa Ethiopia

1.6. Significant of the Study

I have not come across such a study and thus no documentation is found in Addis Ababa.
Development Practitioners haven’t seen beyond its religious significance and thus its potential
for poverty alleviation has not been thought about. On the other hand, the fact that Zakah has
been practiced in the country centuries before and is still trained

The study assumes the role of zakah in tackling of poverty is very relevant and important. Thus,
the ultimate objective of this study is to examine from an empirical point of view, the roles that
could be played by zakah in reducing poverty in Addis Ababa, Ethiopia thus My paper will
serves as a head way in incorporating side lined issues into the development agenda of the
country and further, it serves as a document for further study in related area.

5
1.7. Scope of the Study

This paper covers the assessment of the role of zekah to eliminate poverty in the city of Addis
Ababa for the actual sample size of 219 in the main area of Around Lebu ,Asco , kazanchis for
all kinds of households like married, unmarried, widow and single due to time shortage I
couldn’t access all the city of Addis Ababa.

1.8. Limitation of the Study

The title is very huge and need to further investigation but due to scarcity of time and money I
couldn’t do in details. Collecting data is very difficult, since people in Addis Ababa is not open
to give such kinds of information specially for the remitter side , the beneficiary also the
intention to have some donation while you go to fill the questionnaires and fill shamefulness to
be recipient.

Some of those limitations were overcome and the necessary information was collected with both
remitters and beneficiaries by exercised effort in finding people who have relationship with
beneficiaries and remitters thus I managed to build rapport with the beneficiaries and remitters .
This way I can able to gain their trust. Finally, I carefully reached to various informants from
different walks of life in an attempt to triangulate information I obtained

1.9. Organization of the Paper

The remaining paper is divided into five chapters and organized as follows:

The purpose of the second chapter is laying a theoretical background by presenting a section on
religion and development followed by a brief overview of Islamic economics. Further, it
discusses the concept of poverty beside with the definition of zekah.

The third chapter defines the research method and key words of the research. The forth chapter is
detailed presentation of data gathered through questionnaires. It builds the image of the practice
of Zakah in Addis Ababa, briefly introduces beneficiaries and remitters ends with an image of
chain of Zakah in the city.

Finally the fifth chapter summarizes the preceding discussions, suggests ways to revise the
practice of Zakah as well as identify issues for further exploration.

6
 CHAPTER TWO
INTRODUCTION
Poverty has been the focus for over centuries by various people from different walks. It is a
complex and multi dimensional phenomenon which has never been defined in a definite manner.
As a result, the development ground has expanded to incorporate various components. In
representation of this fact, this chapter briefly discusses the relationship between religion and
development followed by presentation of Islamic package of poverty alleviation which is zekah.
Other concepts central to the paper are discussed to clarify their usage in the following chapters
of the paper.

2.1. Theoretical literature review

2.1.1. Poverty

At first, it is important to eliminate poverty to achieve the development which is one of the
Millennium Development Goals. So, we have to understand poverty. There are many and varied
definitions of poverty that have been put forward by international agencies, government
institutions and also by poor people themselves. According to the World Bank (2001), poverty is
a multidimensional phenomenon, encompassing inability to satisfy basic needs, lack of control
over resources, lack of education and skills, poor health, malnutrition, lack of shelter, poor
access to water and sanitation, vulnerability to shocks, violence and crime, lack of political
freedom and voice. Traditional approaches to measuring poverty have focused on income and
consumption expenditure (World Bank 2001). Further, the definition of poverty is based upon
monthly income, employment and consumption / expenditure patterns’ (Representative of an
international NGO, Anuradhapura)

2.1.2. Zakah

Zakah is one of the five pillars of Islam on which stands the structure of Islam. It is not
considered a favor that is given to the poor by rich. It is the right of the poor on the wealth of the

7
rich. Thus, one who pays zakah actually “purifies” his wealth by separating from it the portion
that belongs to the poor. Zakah benefits not only the one who receives it but also the zakah payer
himself. Some scholars describes the beneficial effects that zakah brings to the individual and his
wealth. In brief, these effects are that Zakah is as a reminder that wealth belongs to Allah,
purifies the soul from miserliness, trains one to give, trains one to acquire divine characteristics,
an expression of thankfulness to Allah, stimulates personality growth, improves ties of mutual
love, purifies wealth, and brings growth to wealth. Therefore, zakah plays a key role in bringing
about such as an ideal society, for it not only helps the needy and allows an ongoing circulation
and distribution of capital from the rich to the poor sectors of the community, but at the same
time it builds a relationship of compassion and appreciation between one another among its
members.

2.1.3 Zakah and poverty alleviation

Poverty has become an economic, social, and political issue all over the world particularly in the
developing and third-world nations including many of the Muslim countries. Parties from
various organizations, such as the United Nations (hereafter, UN) and World Bank are working
hard to eradicate poverty with all kinds of activities, programs, services, and policy
developments. In 2000, the UN organized an event that gathers the leaders of the nations to sign
the “Millennium Development Declaration”. On that day, these world leaders pledged to work
together to achieve the “Millennium Development Goals” by the year 2015, where one of the
objectives is to significantly reduce the number of extreme poverty and hunger globally (United
Nations, 2012). Similarly, a year before, International Monetary Fund (hereafter, IMF) and
World Bank introduced the Poverty Reduction Strategy (henceforth, PRS) that outline a
comprehensive country-based strategy to significantly reduce poverty. In general, it is believed
that governments and markets alone are unlikely to solve the poverty problem. Therefore, it is
crucial for other parties consisting of general societies, non-profits and non-government
organizations to actively participate in encouraging economic growth and welfare, thus
alleviating poverty. Generally, poverty is measured in monetary terms, based on the income
levels or consumption per capita or per household. In 2008, the World Bank has redefined the
international poverty line at $1.25 a day instead of $1 a day, based on the purchasing power

8
parities (World Bank, 2008). Based on this new figure, it was suggested that those who earned
less than $1.25 a day are categorized under absolute poverty.

Furthermore, according to a UN declaration, poverty is defined as:

“lack of basic capacity toparticipate effectively in society. It means not having enough to feed
and clothe a family, not having aschool or clinic to go to; not having the land on whichto grow
one’s food or a job to earn one’s living, nothaving access to credit. It means insecurity,
powerlessness and exclusion of individuals, households andcommunities. It means susceptibility
to violence, and it often implies living on marginal or fragile environments, without access to
clean water or sanitation”. (UN Statement, June 1998)

On the other hand, Islam defines poverty based on an individual failure to fulfill any of the five
basic human requirements of life that is based on MaqasidSyariah: i) religion, ii) physical self,
iii) knowledge, iv) dignity, and v) wealth (Hassan, 2010). Islam, being a religion of balance,
views poverty as social and ideological problems. It is considered as social problem because the
effects are felt in the society as a whole.

Moreover, it is also an ideological problem as it affects the performance of one’s socio-religious

obligation towards the community and Islam, and may even lead to kufr. Furthermore, a hadith
reported that Prophet Muhammad (pbuh) has sought Allah’s refuge from poverty.

"O Allah! I seek refuge with You from laziness and geriatric old age, from all kinds of sins and
from being in debt; from the affliction of the Fire and from the punishment of the Fire and from
the evil of the affliction of wealth; and I seek refuge with You from the affliction of poverty, and I
seek refuge with You from the affliction of Al-Mesiah Ad-Dajjal. O Allah! Wash away my sins
with the water of snow and hail, and cleanse my heart from all the sins as a white garment is
cleansed from the filth, and let there be a long distance between me and my sins, as You made
East and West far from each other." (Hadith – SahihBukhari)

Therefore, it was suggested that poverty cannot be alleviated through income redistribution only,
but it needs to include a holistic approach. Hassan (2010) and Sadeq (1997).

9
2.1.4. Religion and development

Religion is a fundamental dimension of human existence (Karner and Aldridge 2004: 26) and
has a holistic approach to life as it comprises of various dimensions like „rituals, doctrines,
ethics, social, political and material‟ (Ibid2004: 7). Reaffirming the importance of religion,
Marshall and Keough (2004:1) emphasize that religion is the “most pervasive and powerful force
on earth”. Basing their argument on the real time practices of Africa, TerHaar and Ellis (2006:
364) refer to religion as „resource‟ of society which has to be used as it plays vital role in
development and is central to the daily lives of most people in the world (Marshall and Keough
2004: 1).

Development, on the other hand, can be literally taken to be „well being‟ or „improvement‟.
However, these expressions by themselves are debatable as they refer to different aspects within
cultures (Gasper 2004: 14). Ambiguity in relation to its definition goes in line with what the term
development consists of. It raises the question if it is only material advancement, something else
or may be combination of different elements (Ibid).

Recognition of the multidimensional nature of development, practitioners delved into various

dimensions of development.

Economic definition of development and incorporation of other vital elements has revealed the
positive roles religion can play in the development arena. Religion and development have been
in isolation as they focus on two different aspects of nature. The prior is primarily concerned
with peoples spiritual wellbeing while the latter is engaged with material well being. Such a
practice led to the development practice to walk separate from religion and thus secularism was
promoted by development institutions. The other challenge in incorporating religion into
development is the problem of interpreting religious values into economic terms (Marshall and
Keough 2004: 2) which is important for the materialistic view of development. The gulf between
religion and development was, however, bridged by increased interest in faith based
organizations, which inherently are engaged with humanitarian activity since time immemorial
(Marshall and Saanen 2007: 3-4). They explain that significant changes emerged with the actions
of faith based organizations following the disastrous result of structural adjustment polices.
Subsequent to the SAP action was the “global Jubilee 2000 movement‟ which put pressure on

10
secular organizations to modify their approach to poor countries. This resulted in engaging
religious leaders in policy discussions. The significant achievement of faith based organizations,
as a result, led to incorporating the unacknowledged role of religion. This does not mean that one
is subsumed into the other but that they have established collaborated effort in dealing with
common missions. One of the major communal points of concern is poverty (Marshall and
Saanen 2007: 4). In dealing away with poverty, Marshall and Keough (2004: 9), argue that
looking into religion and development as separate and distinct feature is a total mistake. Rather,
they explain how the two concepts are intermingled in the action of „heart, soul and hand‟.
TerHaar and Ellis (2006: 355) attest this argument by explaining that the two elements have so
much in common that development is being redefined with expressions materialized from
religious stance. Tyndale (2006: 153-154) explains that religion is an everyday life where by
human beings cannot be solely spiritual like angels or purely live materialistic lives.

2.1.5 Islamic Economics

The concept of development in Islam, like many other religions, is based on the recognition of
human’s material and spiritual needs which are interrelated. Thus from Islamic perspective,
development process is said to be complete when it fulfils both these needs. Chapra (2000)
argues moral and conventional economies are interdependent since in the absence of the previous
anomaly rises which is an impediment for the later. Spiritual development consists of recognition
of purpose of “ones creation, ones duty towards God, other human beings, all other creatures and
natural environment” (Ersoy 2009: 97). Increased spiritual development, hence, is reflected in
beneficial use of resources, not only for oneself but for others too.

In response to the incomplete hegemonic economic order coined by the West, religious scholars
encountered the need to look for alternative economic order that targets both material and
spiritual development. As a result, Muslim economists developed “Islamic economics” which is
based on Islamic principles (Tripp 2006: 109). Chapra (2000: 23,29) explains the fundamental
difference between Islamic and conventional economics emerges from their respective view of
the world. The Islamic view of the world is based on consideration of „brotherhood and moral
values‟ while the conventional view is value- neutral and materialist‟. The rational of Islamic
economics is that individuals base their economic decisions on the basis of the Islamic laws
derived from the fundamental book and teachings of the religion (Weiss 2002: 9). He describes

11
this is one of the distinct features which reflects moral dimension. The second stance of Islamic
economics is prohibition of transactions on the basis of interest. Thirdly, it is concerned with the
institution of Zakah and social welfare (Tripp 2006: 19,Weiss 2002: 15). Islamic banking is
monetary policy tool while Zakah serves as fiscal policy instrument. The institution of Zakah is
mainly engaged in redistribution and thus is a direct tool of poverty alleviation.

Poverty alleviation is one of the hallmarks of Islamic economics. This is so due to the fact that
poverty, in Islam, is seen as an evil that might drag down one to disbelief (Ahmed 2004:
21,Alhabshi 1991). This refers to the material as well as spiritual needs. Thus, the remedies
extended to overcome poverty, if not to prevent it, are crafted in a manner the individuals satisfy
both the material and spiritual needs. The Islamic system, primarily urges each individual to
fulfil the necessities of his life by working and making a living. However, when it is beyond the
capacity of that person, it is the responsibility of each and every individual to lift up the
underserved one. The primary strategy is enabling the poor and the needy use their skills to earn
a living independently. This applies to the bodily abled ones but for „incapables‟, stipend for
their yearly needs is met (Alhabshi 1991). The main source of fund for such an activity is built in
the institution of Zakah. The Islamic approach towards poverty, thus, has a unique feature in that
it specifically defines the targets and provides the procedure in overcoming it (Chaudhry and
Maik 2005).

2.1.6 Conventional definitions and approach of poverty

The concept of poverty is rich with words as there is a wealth of literature which delineates it
overall from different angles. For this reason, it seems, development studies dealing with poverty
related issues are witnessing evenly increased features in defining poverty. As a bench mark in
defining poverty, various authors have taken varied indicators ranging from general to specifics.
In the prior case for instance, poverty has been defined in association to „lack‟ or “deficiency‟ of
acquiring human needs (Wratten 1995: 12). In other instances, indicators like income or
consumption level are taken while still in other perspectives non materialistic definitions are
employed in understanding poverty (Ibid, Abdella, 2008:44). Evolution of the concept of poverty
can be traced back to the pre twenties when poverty was solely defined as an economic
phenomenon (Oster et al. 1978: xiv). Over the twenties, however, the concept was broadened to
include various components which are non-economic as well. Maxwell (1999: 2) traces the

12
changes as in decades. In 1960s, he explains, macro level indicators like GNP were taken as
measures. In the 70s, on the basis of recognition of the ILO work, poverty came to include issues
of quality of human life standards like health, education and related public services. Major shifts,
however, were witnessed in the 80s when the non monetary components were mainly
incorporated to the definition of poverty. Different professionals came into throw various
concepts like powerlessness, isolation, gender and others which resulted in implementing widely
varied strategies and approaches to combat poverty. UNDP’s definition of poverty in the 1990s
is relatively comprehensive as it delineates poverty at a multi dimensional level by considering
human condition as the central point of analysis. In response to the varied conceptualizations and
respective measurement, the development arena has been going through rigorous theories and
strategies in search of the “right‟ tool to tackle poverty.

2.2 Empirical literature review

In the previous studies MF. Fazeela (2014) have explained that Zakah has influenced to increase
the income of 35% of people and 31% of people have got employment as well as the poverty of
10% of people has reduced by Zakah at Sammanthurai, Sri Lanka.

According to Kahf (2004), implementation of zakah can provide micro financing to the poor.
Zakah can be given out to the poor for consumption purposes to avoid diversion of funds from
production. The combination of micro financing and zakah funds will make it easier for the poor
to break out of the poverty cycle (Kahf, 2004, p.19). In addition, Islam establishes zakah as a
compulsory charity tool that can be used on eight purposes. Among them, five are meant for
poverty eradication such as the poor, the needy, the debtors, the slaves (to free them from
captivity), and the travelers in need. Other heads are the administrative cost of zakah, 'those
whose hearts are made inclined' (to Islam), and in the way of Allah. Although eight heads for
spending Zakah revenue have been mentioned in the Qur'an, there is general agreement that the
first priority in the use of Zakah funds has to be accorded to the alleviation of poverty through
assistance to the poor and the needy (Hassan, M. K., 2006, p.16).

Further, another survey conducted by Ismail Hossain (2013) shows, that Mosque Based Zakah
Management is the easy and appropriate for Zakah collection and distribution and it also reveals

13
 that by applying this Mosque ased Zakah Management, Bangladesh will be poverty free country
within a short period of time.

In another previous study related to the Zakah, the authors, SyauqiBeik I, et all (2012) explained
that the positive effects of zakah distribution programs in reducing poverty incidence, the depth
of poverty and the severity of poverty in Indonesia.

Another research conducted in Bahrain shows that, zakah can eliminate poverty in Muslim
countries and achieve the desired justice in the distribution of income (H.H. Abdelbaki, 2013)

2.3 Conceptual frame work

Fig 1: Conceptual frame work

ZEKAH REMITTER BENEFICIARY

(Problem)
-Direct material -The poor (Needy) -Finding and getting
support - Orphans remitters
- Direct cash flow -Widow -Zekah money is only
-Cash flow as seed -Aged yearly base
money -Disabled -Zekah money is too
small
-

-Direct material
Poverty Reduction support
- Direct cash flow
-Cash flow as seed
money

-Create income -
equality
-Eliminate poverty

Source –prepared based on previous literature listed above and the assumption of this study

14
Figure one gives the conceptual framework of the paper. It shows how the zekah money flows
and reached to the beneficiary. The main part, which is important for the study, is the purpose of
zekah. The beneficiary of zekah used for the poverty alleviation tools.

Second the remitter give zekah money to use the poverty reduction tools like cash flow as a seed
money and then the problem of the beneficiary that couldn’t able to use zekah money for poverty
reductions. In addition to that is the flow of zekah reached the respective beneficiary and fulfill
its target.

15
 CHAPTER THREE
REASERCH METHODS
3.1. Introductions

The main purpose of this research was to see the relationship between Zakah and income of the
beneficiaries in Addis Ababa, to do that this chapter clearly identifies the data source, data
collection and techniques, process of data collection, sampling and data analysis techniques.

3.2 Data Source, Data Collection and Techniques

The data important for the research work were collected from both primary and secondary data
source. Primary data were generated through questionnaires and secondary data were obtained
from relative books, other research books, Quran and Hadith

To meet the objective of the research the study uses simple random sampling techniques by
selecting the site purposively where poor Muslims are gathered together like lebu special name
tegetatami, kasanchis and other mosque area to get the beneficiaries. On the other hand to find
the remitter use special area likes merkato, teklehimanot and other business areas.

3.3 The process of data collection

Before the actual data collection process, a personal visit was made to most of the mosque in
Addis Ababa and some Muslim areas, during this time, informal discussion were made with
some peoples regarding zekah and its benefits which help to develop questionnaires for the data
collections.

3.4 Sampling

According to personal visit and informal discussion were made, the total sample size was 270
and it was selected on the basis simple random sampling technique. Questionnaires given to 140
beneficiaries and collected 138, 30given to the obligatory Zakah payers and collected only 17
and 100 from who deserve -zekah but not receive and collected only 67.

16
3.5 Data Analysis

Different analytical techniques were applied for analysis of both qualitative and quantitative
description. For the quantitative part, STATA was applied to make the analysis more accurate.
Descriptive statistics were used for the important part of the analysis.

Analysis of the qualitative data collected through the techniques were summarized and reviewed
for consistency checks and completeness. In the process of the Analysis, it was attempted to look
the information was summarized under each key variables. Moreover, tables were used to
display the analysis.

17
 CHAPTER FOUR
RESULT AND DISCUSTION
4.1 Introduction

This chapter presents the current way of handling zekah in Addis Ababa on the bases of
information gathered through questionnaires both from beneficiaries, none beneficiaries and
remitters. It addresses the objective of the study through interpretations of tables by indicating
each variable based on the result of questionnaires.

4.2 Actors

The money from the source to its destination, I found that the actors are individual contributors
(remitters), who deserve zekah but not receive (none beneficiaries) due to lack of information
that has remitter and the beneficiaries (zekah receivers). These actors and their respective
activities in relation to the practice of Zakah in the city are discussed in the subsequent sections.

The characteristics of both actors are presented in table two and thee below using descriptive
statics in form of frequency distribution and percentage to analyze and interpreted the data
simultaneously. That is the demographic characteristic of the 241 respondent who has zekah
recipient and who deserve but not receive, and remitters were presented and examined in an
attempt to gain an insight in to their features in relation to poverty alleviation in the area of the
study.

4.2.1 Remitters

Remitters are obligatory zekah payers, most remitters are individuals who give their obligatory
zkeah directly for different beneficiary in small amount of money for each in yearly bases some
of them given to their close relatives in the form of cash or as a seed money for start their own
business and as if they can able to change their lives for long run and they can also able to pay
zekah on the next zekah period.

18
 Table 2: Characteristics of zekah Remitter

S.No Variables Frequency Percentage (%)

Age
1 25-35 7 43.75
36-55 9 56.25
Total 17 100
Gender
2 Female 9 56.25
Male 7 43.75
Total 16 100
Marital Status
Married 16 100
3 Single 0 0
Widowed 0 0
Divorced 0 0
Total 16 100
Time of distribute
Yearly 15 93.75
4
Semi annually 1 6.25

Total 16 100
To whom to give ?
Needy(poor) 12 75.00
Disable 1 6.25
5
Aged 1 6.25
Widow 1 6.25
Orphan 1 6.2
Total 16 100
6 How do you select?
Owen observation 13 81.25

19
 Other peoples indication 3 18.75
Total 16 100
Why these people?
They are liable to receive zekah 3 18.75
7 They are unable to work 2 12.5
They need to support 7 43.75
Must pay obligatory zekah 4 25.00
Total 16 100
Do you follow up after you give the
zekah money? 6 37.5
8 Yes 10 62.50
No

Total 16 100
How do you rate recipients?
Live same 5 31.25
9
Positively change 10 62.50
Negatively change 1 6.25
Total 16 100
Why they live same, Positively or
negatively changes?
No Comment 1 6.25
10
Zekah money is small 3 18.75
Zekah is used for investment 9 56.25
Zekah is used for consumption 3 18.75
Total 16 100
What is the potential of zekah in
poverty alleviation?
11 Little potential 13 81.25
High potential 2 12.50
No potential 1 6.25

20
 Total 16 100
Who does the calculation for you?
Professional staff 4 25
12
I do it my self 10 62.50
My relatives 2 12.50
Total 16 100

Source: Own Survey 2018

Understanding from the analysis of table 2 the findings disclose that most of the remitters are
elder age between 36 up to 55,9 (56.25 percent) of the remitter on the other hand the majority of
gender of the remitters are female , 9(56.25 percent) and all marital status of remitters are
married there is no single and others, suggests that the majority of zekah remitter in Addis
Ababa is married elderly women.

Based on descriptive statistics most of the remitter 15(93.75 percent) of remitter give their
obligatory zekah in yearly biases, on the other hand the majority 12(75 percent) of the remitter
give their obligatory zekah to needy (poor). Most of the remitter 13(81.25 percent) use their own
observation to select to whom to give their obligatory zekah money, based on their criteria of
that They need to support 7(43.75 percent), Must pay obligatory zekah4(25.00 percent), They
are liable to receive zekah 3(18.75 percent) and They are unable to work 2(12.5 percent).

The descriptive statistics show that the majority of the remitter 10(62.50percent) were not follow
the beneficiary after they give their obligatory zekah to them whether they used for consumption
or any other poverty reduction purpose like education and investment. This implies that remitter
doesn’t aware of the purpose of zekah money. On the other hand most of remitter 10(62.50
percent) rate the recipient as they change positively they lives due to majority9 (26.25 percent) of
remitter responded the reason why were zekah is used for investment purpose.

In addition to that most of remitter 13(81.25 percent) answer that for the question of potential of
zekah for poverty alleviation were fire potential. On the other way out of 16 respondent 10(62.50
percent) of the remitter calculate the zekah money by themselves. If they do it by professional
staff its potential will be high.

21
4.2.2 Beneficiaries

Beneficiaries are who liable to receive zekah from the obligatory zekah payers who has poor
(needy), disable, orphans, aged and deters.

Table 3: Characteristics of zekah recipient and who deserve zekah but not receive

S.No Variables Frequency Percentage (%)

Age
17-25 31 15.20
26-35 66 32.35
1 36-45 52 25.49
46-55 27 13.24
56-65 11 5.39
65-80 17 8.33
Total 204 100
Gender
2 Female 117 57.35
Male 87 42.65
Total 204 100
Marital Status
Married 83 40.69
3 Single 59 28.92
Widowed 53 25.98
Divorced 9 4.41
Total 204 100
Family Size
4 1-6 186 91.18
6 and above 18 8.82
Total 204 100
5 Source of income
Daily labor 56 27.45
Lower employee 37 18.14
Par time house made 28 13.73
Small retailers 26 12.75
Begging 18 8.82
Support from relatives 16 7.84
No source of income 9 4.41
Baking Injera 6 2.94
Retire 6 2.94

22
 Religious activities 2 0.98
Total 204 100
Zekah money received
6 Yes 137 67.13
No 67 32.87
Total 204 100
From who receive zekah
7
Different individual 15 11.03
Single individual 121 88.97
Total 204 100
How regular receive
8 Yearly 128 94.12
Quarterly 8 5.88
Total 204 100
The purpose on which zekah money was
used
Daily Consumption 62 30.39
Education 50 24.50
Startup business , supporting and expanding 43 21.10
9
already existing work 18 8.82
Medical 13 6.37
Payment of debt 10 4.90
Rent 8 3.92
Maintain house
Total 204 100
Perception of Zekah from both recipient
and non recipient
10 Positively change their lives 176 86.27
No change 27 13.24
Negatively change their lives 1 0.49
Total 204 100
Respondant’s probability being zekah payer
for next zekah period
11 No 36 17.65
Yes 31 15.20
No answer 137 67.16
Total 204 100
Source: Own Survey 2018

23
Reading between the lines (from the analysis of table 3), the finding reveals that most of the
zekah recipient are younger people between the age of 26 and 35, that is 66 (32.35 percent) of
the respondent on the other hand, the sex status of the respondents revels that 117(57.35 percent)
of them were female suggesting that majority of zekah recipient in Addis Ababa were female.

The result of marital status shows that 83(40.69 percent) of the respondent are married, 59(28.92
percent) were single, 53(25.98 percent) were widow and only 9 (4.41 percent) are divorced this
implies that majority of respondents marital status were married. On the other hand family size
of the respondent show that 186 (91.18 percent) of them have between one and five, suggesting
that zekah alleviates poverty more on its recipients with less family size than that those with
more family size, looking at their source of income of the respondent it can be seen that 56
(27.15 percent) of the respondent are daily laborer, 37(18.14percent) are lower employees like
security gourd, messenger and cleaners, 28(13.73 percent ) are par time house made, 26(12.75
percent) are small retailer the remaining 57 (27.93 Percent) are beggars, support from relatives,
religious activities and no source of income at all.

Majority of the respondent received zekah money in their respective remitters. When asked
whether they have received zekah money, 67 (32.87 percent) indicated “no” and 137(67.13
percent indicated “yes” out of this 137 respondent, 121(88.97 percent) received zekah money
from single individuals, the remaining 15(11.03 percent) respondent received zekah money from
different individuals in a small amount of money from each. Based on how regular they receive
zekah money, 128(94.12 percent) of respondent received zekah money on yearly bases and the
rest 8(5.88 percent) respondent received on quarterly based.

The implication of zekha based on the data above in Addis Ababa that most of the beneficiaries
receives zekah money in yearly bases from a single individuals and there is luck of formal zekah
management system to collect and distribute the zekah money in proper way so that some of the
respondent 67(32.87 percent) have deserve zekah money but they never receive due to lack of
information from who they receive the zekah money. This implies that it reduce role of zekah on
poverty alleviation.

The descriptive statics discovered that majority of the respondent 62(30.39 percent) zekah
money used for daily consumption due to the amount disbursed as zekah is too small to start
business, on the other hand 50(24.50 percent) used for education and 43(21.10 percent) used for

24
startup business, supporting and expanding existing works which is for investment purpose, and
the remaining 49(24.02 percent) used for different purpose like medical, payment of debt, house
rent and maintain and repaired old houses.

Majority of the answer from the above descriptive analysis implies that zekah has a role of
poverty alleviation in Addis Ababa as the majority (62.02 %) of respondent use the money for
education, investment(start up business, supporting and expanding already existing small
business), medical, payment of debt , house rent, and maintain and repaired old houses.

4.2.3 Non Beneficiaries

None beneficiaries are who deserve zekah from obligatory zekah payers like beneficiary who has
poor(needy), orphans, aged, disabled, widow and deters, unfortunately due to lack of information
about remitter they never receive zekah. They characteristics are listed in the table below based
on their source of income, perception of zekah and how will used zekah Birr if they will receive
in the future.

Table 4: Characteristics of source of income and perception of zekah between beneficiary and
non beneficiary

Variables Beneficiary None Beneficiary

S.No
Percentage (%) Percentage (%)
Source of Income
Daily labor 30.66 20.90
Lower employee 11.68 31.34
Par time house made 13.87 13.43
Small retailers 11.68 14.93
1 Begging 13.14 -
Support from relatives 8.03 7.46
No source of income 4.38 4.48
Baking Injera 3.65 1.49
Retire 1.46 5.97
Religious activities 1.46 -
Total 100 100
Perception of Zekah
Positively change their lives 91.97 74.63
2
No change 7.30 25.37
Negatively change their lives 0.73 -

25
 Total 100 100
Purpose of zekah for non beneficiaries if
they receive
Daily Consumption 45.25 0
Education 21.90 29.85
Startup business , supporting and expanding 8.029 47.76
already existing work
Medical 9.49 7.46
Payment of debt 9.49 0
Rent 5.11 4.48
Maintain house 0.73 10.45
Total
Source: Owen Survey 2018

The table indicated above (table four) is the comparison between beneficiary and non beneficiary
depends on their source of income. When we see percentage of daily laborer’s are more for
beneficiaries (30.66%) than none beneficiaries (20.90%), where as percentage of lower employee
for beneficiaries(11.68%) are less than from non beneficiaries(31.34%) in addition to that
percentage of small retailers for beneficiaries(11.68%) are less than from non
beneficiaries(14.93) the percentage of the other source of income were almost similar except
bagger and retire there is no bagger from non-beneficiaries and there is more retire non
beneficiaries than beneficiaries. From this premises we can say that if non beneficiaries can able
to receive zekah they can change their lives simply for instant there is more small retailer none
beneficiaries if they support through zeka they can use the zekah money for supporting small
retailers and they can improve their business which is means of poverty reduction.

In addition to that the majority of respondent about perception of zekah from non beneficiaries
were positively changes the recipients live which is 74.63 percent, and the remaining 25.37
percent of respondents are no change for the lives of recipients, no respondent for negatively
changes the recipient’s lives. This is also an indication of positive impact on zekah for reduction
poverty.

Surprisingly when we see the usefulness of zekah if the non- beneficiaries were receive zekah
no one will use for consumption purpose where as 47.76 percent of respondent will used for

26
investment, 29.85 percent will used for education, 10.45 will used for medical, 4.48 percent will
used for rent and 10.45 will used for modification of house

From the above indication we can say that if non beneficiary receive zekah they can uplift from
poverty due to no one will use it for consumption rather they will use zekah money for
investment, education, medical rent and modification of house both are means of alleviation
poverty.

27
 CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
In this chapter, summarize the paper by reacting on research question and suggesting ways of
improving the practice. The objective was to assess the extent to which the religious practice,
Zakah, contributes to poverty alleviation in the city of Addis Ababa, driven by the assumption
that it has a potential to do so. In order to meet the objective, the chain of Zakah from source to
destination was followed. Hence, the chain consists of three actors namely contributors,
beneficiaries, and non beneficiaries.

5.1 Conclusions

Based on the result of simple descriptive statstics, it can be conclude that most of the remitter
had given their obligatory zekah to different individuals like poor (needy), disable, widow,
orphans and aged depends on the remitter interest or other persons indicators to whom to give in
the form of cash, seed money and sometimes as direct material support like rice in yearly bases.

Mostly the perceptions of the remitter are zekah positively changes the beneficiary and while
they follow after give the beneficiary used the money for initial investment and change their live
so that we can say zekah has role of poverty alleviation in the city of Addis Ababa.

Looking in to the role of the second actors, source of income of beneficiaries are daily laborer,
part time house made, baking injera, security guard, small retailers and beggars. Those
beneficiary receive the money and used for daily consumption, education, creating own small
business, medical, modification of house, payment of rent, payment of debts and supporting their
current work.

When we look out from the non beneficiaries’ side daily laborer small retailer and lower employ
and when we ask them if they receive zekah what will do most of the respondent says that they
will used for investment, education, medical house rent and modification of old houses it
indicates that they will use zekah money for means of poverty reduction purpose but not
consumption.

In addition to that the perceptions of zekah in both actors are positive and it indicated that zekah
as great role of alleviating poverty in the city of Addis Ababa. In fact I couldn’t found any proper

28
management of zekah in the city during my study even some of them calculate zekah without
knowledge and some of them they just give zekah for the intention of they must give their
obligatory zekah without knowing for whom to give. Finding the respective person is very
difficult and they give to their cloth relatives or neighbors and they give a piece amount of
money for different individual it doesn’t able to go beyond daily consumptions and it will create
yearly expectation of to receive zkah from similar or different individuals. They also doesn’t
know exact amount of zekah money due to lack of knowledge of calculation zekah money.

5.2 Recommendations

There should be formal and centralized zekah management system in the city in order to meet the
purpose of zekah mentioned in the quean and Hadith which is to avoid inequality.

Every obligatory zekah payers (remitter) should give their zekah money to the mosque or
centrally created formal institution rather than give directly to the beneficiaries. And then those
mosques or formal institute should have the right to calculate, collect and distribute zkeah
money by finding and selecting prospective beneficiary by identifying the beneficiary type if
they poor(needy),disable, widow, orphans and aged in order to provide money depending on how
will spent zekah.

Based on the type of beneficiary zekah should provide through giving some sort of orientation
or training in order to spent the money for an investment purpose, education, or any other
purpose to use lifting of poverty in the city.

The mosque or institution should provide zekah money for investment purpose as if the
beneficiary should able to pay zekah by next years, also provide the zekah money in monthly
bases for school payment, rent payment or daily consumption purpose for those beneficiary can’t
able to work due to aged, patient or any other reasons.

29
 Reference

Ali, Y. (1982). The Holy Qur’an: English Translation of the Meanings and Commentary.

Almadinah Al-Munawwarah: King Fahd Holy Qur’an Printing Press.

Abdel Baki H.H(2013), " The Impact of Zakah on Poverty and Income Inequality in Bahrain"

Karner, C. and A. Aldridge (2004) ‘Theorizing Religion in a Globalizing world’,

International journal of politics, Culture and Society 18(1):532

Marshall, K. and L. Keough (2004) Mind, Heart and Soul in the Fight Against Poverty.

Washington World Bank

TerHaar, G. and s. Ellis (2006) 'The Role of religion in Development: Towards a New

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Marshall, K. and M.V. Saanen (2007) Development and Faith: Where Mind, Heart and Soul

Work Together. Washington D.C: The World Bank

Marshall, K. and L. Keough (2004) Mind, Heart and Soul in the Fight Against Poverty.

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scholarship. The Politics of Islamic Finance, pp.17-36.

Hassan, M. Kabir (2006). “The Role of Zakah in Poverty Alleviation in Bangladesh”, Paper
Presented at a conference in Dhaka, November 24-26, 2006.

Anita, M. S., (2011). A Robust ZakahSystem: Towards a Progressive Socio-Economic

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Obaidullah,M.(2012).Zakah Management for Poverty Alleviation. Islamic Research and Training

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31
Annexe 1 Zekah Beneficiary Questionnaire- English

This research paper is prepared to assess the impact of zekah on poverty alleviation in Addis
Ababa Ethiopia. Therefore, collecting related information about zekah beneficiary and
remittance is necessary. In this part, your reliable information plays a significant role for the
paper. I will appreciate it if you could give appropriate response to the questions. Any
information obtained in connection with this study that can identify with you will remain
confidential. In any written reports or publications, no one will be identified and only group data
will be presented.

1. Age________________
2. Gender
1) Male 2) Female
3. Education level _________________
4. Marital Status
1) Single 2) Married 3) Widow 4) Divorced
5. If your answer is 3 for the above question how long your husband or wives die?____
6. How long have you been in this area of settlement? _________________
7. How many family sizes do you have?____________
8. What is your source of Income?

1) Your daily and retune activity 3) Support from relatives

2) support from Zekah payers 4) Bagging in the street
9. If your answer for the above question is number 2, in what form does the support
come?
1) Direct cash flow 2) means of starting your own work 3)other______________
10. If your answer for the above question is number 1, how do you collect the money?
1) Monthly 2) quarterly 3) Semi Annually 4) yearly
11. From who have you received the zekah?
1) A single individual 3) Different individuals
2) Organization (PLC ,share comp or sole) 4) Others_____________
12. How do you spend the money?

32
 1) Daily consumption 3) Children’s school expense
2) Doing your own business 4) Payment of debts 5)Other_________________
13. If your answer for the above question is 1, what is the reason for using it for con-
sumption?
1) The money is small 3) I have no other income
2) I don’t know how do I use it 4) other
14. Do you know anyone getting zakah money?
1) Yes 2) No
15. If your answer for the above question is yes, how they spent the money?
1) Daily consumption 3) Children’s school expense
2) Doing their own business 4) Payment of debts 5) Other_____________
16. What is your perception of Zekah
1) Dependency development 2) Help for futurity 3) other_____________

Thank you!

33
Annex 2 Zekah Remitters Questionnaire

This research paper is prepared to assess the impact of zekah on poverty alleviation in Addis
Ababa Ethiopia. Therefore, collecting related information about zekah beneficiary and
remittance is necessary. In this part, your reliable information plays a significant role for the
paper. I will appreciate it if you could give appropriate response to the questions. Any
information obtained in connection with this study that can identify with you will remain
confidential. In any written reports or publications, no one will be identified and only group data
will be presented.

1. Age________________
2. Gender
1) Male 2) Female
3. Marital Status
1) Single 2) Married 3) Widow 4) Divorced
4. How do you distribute the zekah money
1) Distribute to different individual by small amount of money
2) Given to a single individuals as a cash flow
3) Given to a single individual as Initial capital
4) Collect form other friends add mine and given to a single individual as
initial capital
5. When do you distribute the zekah money?
1) Monthly 2) Quarterly 3) Semi Annually 4 ) Yearly
6. To whom do you distribute the zekah money
1) Needy(Poor) 2) Disable 3) Aged 4) Widow
7. How do you select to whom to give?
1) Other peoples indication 2) My own observation 3)Other________
8. Why these people?
1) They are liable to receive zekah 3) They need to support
2) They are unable to work 4) I must pay my obligatory zekah
5) Other______________

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9. How much your average amount of zekah money in each year?______________
10. Do you follow up after you give the zekah money?
1) Yes 2) No
11. How do you rate recipients?
1) lives-same 3) positively changes
2) negatively changes 4) Other_____________
12. Why they live same, Positively or negatively changes Depending on your answer
for the above questions
1) The zekah is small and not enough for change
2) The zekah is create dependability for them and dislike to work
3) They use the zekah for initial capital and investment
4) Other_________________
13. What is the potential of zekah in poverty alleviation?
1) No Potential 2) Little Potential 3) High Potential
14. The trend of distribution of your close friends or relatives?
1) Given to a single individual
2) Distribute to different individual for small amount of money
3) Collect and give in a single individual for investment purpose
4) Others______________
15. Who does the calculation for you?
1) Professional staff 3) I do it my self
2) My relatives 4) Other external body ______________

Thank You!

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 Annex 3 ዘካ ተቀባይ

ይህ የመመረቂያ ፁሁፍ ዘካ በድህነት ቅነሳ ላይ ያለዉን አሥተዋዖ ይዳስሳል፡፡ ለዚህም ከ

ዘካ ተቀባይ ና ከ ዘካ ሰጪ ያለዉን አጠቃላይ መረጃ ለማስባሰብ ከረሰዎ የምናገገኘዉ
መረጃ እጅገ ጠቃሚ ሰለሆነ የሚከተሉትን ቃለ መጠይቅ እንዲሞሉልን በትህትና
ስንጠይቅ መረጃዉ ከርስዎ እንደተገኘ አንደማይታወቅ ልንገልተፅልዎ እንወዳለን፡፡
ለሚያደርጉልን ቀና ምላሽ በቅድሚያ እናመሰግናለን፡፡

1. እድሜ———--———

2. ዖታ

1)ሴት 2) ወንድ

3. የትምህርት ደረጃ ———--———

4. የጋብቻ ሁኔታ

1)ያላገባ 2) ያገባ 3) የሞተበት 4) ፍቺ

5. ስንት የቤተሰብ ብዛት አለዎ?———--———

6. የጥያቄ 4 መልስዎ ባል ወይም ሚስት የሞተበት ክሆነ ከሞተ ወይም ከሞተች ምን

ያህል ግዜ ሆነ?———--———

7. አዲስ አበባ ምን ያህል ጊዜ ቆዩ?———--———

8. በምን ይተዳደራሉ?

1)የቀን ስራ በመስራት 2) ከዘካ በሚገኝ ገቢ 3) ከ ዘመድ በሚገኝ ገቢ 4) በልመና

5)ሌላ ———--———

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 9. ለጥያቄ ሥምንት መልስዎ ከ ዘካ የሚገኝ ከሆነ ፡ በምን መልኩ ዘካን ይቀበላሉ?

1)በጥሬ ገንዘብ 2) ለ ስራ ማስኬጃ 3)ሌላ ———--———

10. ለጥያቄ ዘጠኝ መልስዎ በ ጥሬ ገንዘብ ከሆነ መቸ ነዉ ገንዘቡን የሚቀበሉት

1)በየወሩ 2) በየሦሥት ወሩ 3) በግማሽ አመት 4) በየአመቱ

11. ዘካን ከማን ይቀበላሉ?

1)ከ አንድ ግለሰብ 2) ከ ተለያዩ ግለሰቦቸ 3) ከ ድርጅት 4) ከ ሌሎቸ———--

———

12. የዘካን ብር ለምን ያዉሉታል?

1)ለ እለት ጉርሴ 2) ለ አነስተኛ ንግድ መነሻ

3) ለልጀች ትምህርት ቤት ክፍያ 4) ለ እዳ መክፈያ 5) ለሌላ ጉዳይ

———--———

13. ዘካ የሚቀበል የሚያዉቁት ሰዉ አለ?

1) አለ 2) የለም

14. ዘካ የሚቀበል የሚያዉቁት ሰዉ ካለ፡ የዘካዉን ብር ለምን የሚያዉለዉ ይመስለወታል?

1)ለ እለት ጉርሴ 2) ለ አነስተኛ ንግድ መነሻ

3) ለልጀች ትምህርት ቤት ክፍያ 4) ለ እዳ መክፈያ 5) ለሌላ ጉዳይ

———--———

15. ስለዘካ ያለወት አመለካከት ምንድን ነዉ?

1) ሰዉን ጥገኛና ጠባቂ ያደርጋል

2) የሰሙን ህይወት ይለዉጣል

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 3) ሌላ———--———

አመሰግናለሁ!

Annex 2 ዘካ ሰጪ

ይህ የመመረቂያ ፁሁፍ ዘካ በድህነት ቅነሳ ላይ ያለዉን አሥተዋዖ ይዳስሳል፡፡ ለዚህም ከ

ዘካ ተቀባይ ና ከ ዘካ ሰጪ ያለዉን አጠቃላይ መረጃ ለማስባሰብ ከረሰዎ የምናገገኘዉ
መረጃ እጅገ ጠቃሚ ሰለሆነ የሚከተሉትን ቃለ መጠይቅ እንዲሞሉልን በትህትና
ስንጠይቅ መረጃዉ ከርስዎ እንደተገኘ አንደማይታወቅ ልንገልተፅልዎ እንወዳለን፡፡
ለሚያደርጉልን ቀና ምላሽ በቅድሚያ እናመሰግናለን፡፡

1. እድሜ———--———
2. ዖታ
1)ሴት 2) ወንድ
3. የትምህርት ደረጃ ———--———
4. ዘካን እንዴት ያከፋፍሉታል?

1) ለ ለተለያዩ ሰዎች ትንሽ ትንሽ ብር እሰጣለሁ 2) ለ አንድ ግለሰብ በብር እሰጣለሁ

3) ለ አንድ ግለሰብ ስራ መጀመሪያ እሰጣለሁ 4) የኔን እና ሌሎች ጓደኞቸን ሰብስቤ

ለ አንድ ግለሰብ ስራ መጀመሪያ እሰጣለሁ

5) ሌላ———--———

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 5. በምን ያህል ግዜ ዘካን ያወጣሉ(ይሰጣሉ)?

1)በየወሩ 2) በየሦሥት ወሩ 3) በግማሽ አመት 4) በየአመቱ

6. ዘካን ለማን ይሰጣሉ?

1)ለድሃ 2) ለአካል ጉዳተኞች 3) ለአዛዉንቶች 4) ባል/ሚስት ለሞትብተ

5) ሌላ———--———

7. ዘካ ተቀባይን እንዴት ይመርጣሉ?

1) በሰዎች ጥቆማ 2) በራሴ እይታ 3) ሌላ———--———

8. ለምን እነዚህን ስዎች መረጥክ?

1) ዘካ ስለሚገባቸዉ 2) እርዳታ ስለሚገባቸዉ 3) መስራተ ስለማይችሉ 4)

የዘካ ግዴታየን ለመወጣት 5) ሌላ —--—

9. በአማካኝ ባአመት ምን ያህል ዘካ ያዎጣሉ?———--———

10. ዘካ የ ሰጣሃቸዉን ሰዎች ተከታትለህ ታዉቀለህ?
1) አዉቃለሁ 2) አላዉቅም

11. ዘካ ተቀባዩን እንዴት መዘንከዉ(አሉታዊ ወይም አወንታዊ ለዉጥ)?

1) ለዉጥ የለለዉ ኑሮ እንደሚኖሩ 2) በ ዘካ ብር ለዉጥ ሲያመጡ

3) ዘካን በ መቀበላቸዉ የተረጅነት ስሜት ሲሰማቸዉ 4) ሌላ———--———

12. ለምን አልተለወጡም? ለምን አሉታዊ ወይም አወንታዊ ለዉጥ አመጡ?

1) ያገኙት ብር አነስተኛ በመሆኑ 2) የ ዘካ ብር ተረጅነትን ስላዳበረ

3) የዘካ ብር አነስትኛ ስራ እንዴጀምሩ ስለረዳቸዉ 4) ሌላ———--———

13. ዘካ ድህነት ቅነሳ ላይ ምን አስተዋፆ አለዉ?

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 1) ምንም አስተዋፆ የለዉም 2) ከፍተኛ አስተዋፆ አለዉ 3) መጠነኛ

አስተዋፆ አለዉ

14. ጓደኞችህ፣ ዘመዶችህ፡ ወይም ሌላ የምታዉቃቸዉ ሰዎች ዘካን እንዴት ያከፋፍላሉ?

1) ለአንድ ግለስብ ይሰጣሉ 2) ለተለያዩ ሰዎች ያከፋፍላሉ

3) ሰብስበዉ ላነድ ግለስብ ለስራ መጀመረያ ይሰጣሉ 4) ሌላ———--———

15. የዘካን ሂሳብ ማነ ይሰራልዎታል?

1) ባልሙያ 2) እኔ 3) በ ዘመድ አሰራዋለሁ 5) ሌላ———--———

አመሰግናለሁ!

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