Mobilizing Zakat for sustainable old-age poverty: Potential evidence from Morocco

Résumé

Abstract

This paper provides an exploratory assessment of the potential role of Zakat as a charitable and redistributive mechanism in addressing old-age poverty in Morocco, in a context of demographic ageing, labor market informality and limited contributory pension coverage.

The study adopts a mixed-methods, deductive design combining a qualitative and descriptive analysis of the Moroccan pension landscape, a conceptual examination of Zakat grounded in the Islamic moral economy literature, and an exploratory quantitative simulation based on secondary data from the World Bank and the Moroccan High Commission for Planning (HCP). Potential Zakat resources and redistribution scenarios are estimated through the equation B = αZ/N.

The estimated annual Zakat collection in Morocco is equivalent to approximately 1.67% of GDP. Under conservative allocation scenarios, the average monthly income of elderly poor individuals could rise from about USD 193 to USD 491, while the cost of a Zakat-based charitable pension fund is estimated at only 0.33% of GDP, well below the potential Zakat mobilization capacity.

The paper offers one of the first simulation-based assessments of a Zakat-based charitable pension fund for Morocco, reconceptualizing Zakat as a non-contributory old-age income support instrument that complements, rather than replaces, existing pension systems.

In the absence of an institutionalized Zakat fund in Morocco, the simulations rely on secondary data and simplifying assumptions; results are indicative orders of magnitude rather than predictions.

The findings inform policymakers on the financial feasibility, governance requirements and institutional design options of Zakat-based old-age income support in Morocco and comparable African contexts.

Keywords : Old age poverty – Islamic Economics – Zakat institution – Sustainability – Morocco