Raaiq Pandie CFP®, Dr Jasmine Kinsman CFP®
Abstract
Zakat is one of the five pillars of Islam, requiring eligible Muslims to make annual contributions to those in need. Proper knowledge of the Zakat calculation is essential to ensure compliance with this religious duty, which carries significant financial implications for Muslims. In South Africa, financial planning and advice professionals emerged as key figures capable of ensuring accurate Zakat payments due to their financial expertise. However, measuring financial planning and advice professionals’ capacity to do so necessitates a tool to assess their Zakat literacy. This study aimed to adapt the Badan Amil Zakat Nasional (BAZNAS) Zakat Literacy Index (ZLI), originally developed for Indonesia, a nation governed by Shariah law for application in the South African context, where Islamic finance functions within a broader conventional financial services framework. Using a qualitative desk research approach, the study revised the BAZNAS ZLI indicators to reflect South Africa’s unique demographic, cultural, legal, and financial landscape. A key outcome was the identification of general Zakat knowledge as a critical competency area for financial professionals serving Muslim clients. The resulting adapted ZLI provides a contextualized assessment tool capable of evaluating the Zakat literacy of financial planning and advice professionals. This tool addresses the distinctive Zakat practices and financial realities of South African Muslims, enhancing professional advisory services.