OVERVIEW OF ISLAMIC FINANCE EDUCATION IN TANZANIA

The current economic reality of tougher regulations, technological advances, demographic shifts, digital lifestyles and work style revolutions, is putting greater emphasis on establishing a larger pool of competent Islamic Finance professionals to meet the increasing market share of the Islamic Financial Services Industry (IFSI). According to Malaysian Islamic Finance Center report on Human Capital Development, Islamic Finance contributes 11% of total employment to the IFSI worldwide, with an estimation of one (1) million professionals required by 2020.

A report on Global Islamic Finance Education 2013 by Yurizk indicates that, whilst the Asian region hosts about 43% of the global Islamic Finance education and knowledge service providers, Malaysia ranks behind Pakistan as the second highest Islamic Finance education provider with over 86 institutions offering Islamic Finance education, of which 48 are academic institutions. Malaysia ranks highest amongst 38 providers for professional development programmes including certification, training, seminars and workshops. These notable institutions include Islamic Banking and Finance Institute Malaysia (IBFIM), International Islamic University Malaysia (IIUM) and the International Centre for Education in Islamic Finance (INCEIF). Besides academic programmes, a number of professional-based and certification programmes are offered to cater to the needs of the IFSI.

Malaysia is also recognised to be at the forefront of research with the setting up of the International Shariah Research Academy to promote applied research in the area of Shariah and Islamic Finance. The Academy acts as a repository of knowledge for Shariah views and undertakes studies on contemporary issues in the IFSI.

Experience has shown that involvement of various stakeholders such as Islamic Finance Service providers, regulators, academic institutions, professional associations, consulting firms among others are key ingredient to create synergy required to boast Islamic Finance education.

Currently in Tanzania, there are not less than six financial institutions that offer Islamic financial services as well as three academic institutions which offer Islamic Finance courses from certificate level to post-graduate level. Bank of Tanzania Training Institute has being offering short term training courses but it has not been very consistent in doing so every year. Professional associations like Tanzania Banker's Association (TBA) are yet to integrate Islamic Finance subject in their professional courses.

Zanzibar University (ZU).

This is the first University on the Isles. It is a private institution sponsored by Darul Iman Charitable Association (DICA).The main campus is situated at Tunguu area, in the Central District, some 19 kilometers from Zanzibar Town.

The university offers certificate, diploma, degree and MBA programmes in Islamic Banking and Finance. Related to Islamic Finance course, the University offer Bachelor's degree of Law and Shariah. It well known that Islamic Finance backbone is its strict adherence to ethics, rules and principles derived from Shari'ah.

Zanzibar Institute of Financial Administration (ZIFA).

ZIFA was established by Presidential order 2nd of July 1998 for the purpose of training as many middle cadre accounting and finance professionals to address the scarcity of manpower in those profession for the Government of Zanzibar and private sector. The Institute is located at Chwaka village, scenic fishing village in Central District 30 kilometers from Zanzibar town.

The institute uses an integrated approach where by Islamic Banking is part of the core module for Higher Diploma in Banking and Finance leading to a degree in Banking and Finance.

Muslim University of Morogoro (MUM).

The Muslim University of Morogoro was founded by the Muslim Development Foundation (MDF) on 23 rd October, 2004 by a Charter proclaimed by MDF, proprietors of the University. The University is located to the north of the magnificent Uluguru Mountains, some 4 km from the centre of Morogoro Municipality, about 100m off the Morogoro-Dodoma highway and just about 10-minutes walk from the main bus terminal.

The university offers certificate and diploma courses on Islamic Banking and Finance. Furthermore, the university offers certificate, diploma and degree of law with Shari'ah. Her Bachelor of Business Studies has optional specialized field of study on Islamic Banking and Finance.

Issues and Challenges in Developing Human Resources in Islamic Finance

Despite much effort spent on Islamic Finance education and training, there remains numerous challenges to be addressed, particularly in integrating education and training with the requirements of the Islamic Finance industry, as well as streamlining leaning standards between academic and training programmes.

The courses for Islamic Finance have been developed by the academia through either research or personal experience of the trainers with limited practical knowledge or understanding of the industry practices. This creates a gap in terms of fulfilling the competency requirements of the Islamic Finance industry in the country. This situation is not unique to Tanzania but exists even in countries where Islamic Finance has reached advanced level. The current scenario requires closer collaboration between the academia and Islamic Finance industry practitioners as well as adoption of reputable standardized curriculum such as Financial Accreditation Agency (FAA) learning standards in Islamic Banking, Islamic Insurance and Islamic Capital Markets.

The aforementioned challenges point to one conclusions that although some of the challenges are specific and local in nature, they are to a certain degree universally intertwined. For instance, education and training could be received by Islamic Finance professionals in Tanzania but such professional is not able to practice across jurisdictions with different interpretation of Shariah principles. Hence, a global approach presents a more practical solution in addressing the issues.