In abid to provide alternative sources of finance, President Yoweri Museveni has launched Islamic Banking service in the market place.
Islamic banking is a form of banking based on Islamic principles. Basically, in Islamic banking it is not allowed to pay and receive interest but rather it is based on profit sharing. Islamic banks focus on generating returns on investments through investment tools that are “Sharia” compliant.
Islamic banking is being spearheaded by Salaam Bank Group following Bank of Uganda granting management alicense last year.
President Museveni eiterated his call to believers to make sure that they take part in income-generating activities to improve their livelihoods.
“I welcome Salaam Bank to Uganda. This is a big market with a population of 48 million now and in the next 27 years, the population of Uganda will be 106 million. You are going to start right away to serve the people of Uganda,” Museveni said.
He assured Muslims that in the near future he will have a meeting with their leaders so that they discuss PDM and riba and how Muslims can benefit from the program without any limitations.
“If you convince me that the PDM and Emyooga money has some contradictions as per the Islamic teachings, then I will find a way how I send your money direct to this bank.”Museveni said.
President Museveni further said as the NRM, they don’t believe in discrimination, and they serve all Ugandans equally irrespective of their religions or tribes. He said such attribution has enabled the country to develop socially and economically.
“When Amin left, those of Lule dislodged Uganda from the Organization of Islamic Cooperation (OIC) saying that the majority of Ugandans are not Muslims but when we took overpower, we readmitted the country back to OIC. I told them that some of my people are Muslims so they must belong to such an organisation and it was also not a taboo to belong to OIC even if you are not a Muslim. We believe in politics of interest not identity,” he said.
“When the Islamic University in Uganda was beginning, some people were against it. I said no, leave it to operate. Now, it has produced so many graduates of different professions including non-Muslims. When they told me about Islamic banking, I told them I have no problem with it. I said we should let them operate and that is why we have Salaam Bank now.”he stressed
The Minister of Foreign Affairs and International Cooperation of Djibouti who led the Djiboutian delegation to Uganda, Mr. Mahmoud Ali Youssouf, extended warm greetings of the President of Djibouti, H.E Ismaïl Omar Guelleh to President Museveni.
Mr. Ali Youssouf underscored the inspiring ambition of the Salaam Group to broaden the scope of its activities all over the continent including Uganda which he said has a safe and solid financial institution.
The ONC Manager, Hajjat Hadijah Namyalo thanked President Museveni for economically empowering Muslims through granting them an Islamic Bank.
“Your Excellency, you are a true definition of a God-sent leader who feels empathy for us the poor. Your Excellency, we are all gathered here because you love us and we love you too and for a particular purpose, you are ready to empower us,” Hajjat Namyalo said.
The Wakiso District Kadhi, Sheikh Erias Kigozi who spoke on behalf of Muslims, thanked President Museveni for being a hero, a patriot, a parent and a visionary leader with a mission and an ambition.
“We thank you for being a good leader who thought of us Muslims and made it possible for us to have our own bank in line with the Sharia law,” he said.
He also commended President Museveni for fighting and protecting the property of Muslims in the country.
“We also thank you for reappointing our fellow Muslims like Hajjat Rukia Nakadama, Hajjat Minsa Kabanda, among others to Cabinet.”Kigozi said.
The Board Chairman of Salaam Bank, Mr. Ibrahim M. Abdirahman informed the President that he signed the Islamic bank regulations into law at a time when the Islamic community really needed it.
“Indeed, you have been a true friend of this community. This licence for Salaam Bank was handed over to us on the 8th of September 2023, which was the birthday month of Your Excellency, Mr. President, we sincerely thank you for supporting us wholeheartedly. The establishment of an Islamic Bank marks a significant milestone in Uganda’s journey towards economic empowerment and inclusive financial growth,” he said.
“Islamic finance offers among others, Shari’a compiled bonds from which the government can raise capital for various infrastructure and projects. We are hopeful that the government of Uganda will embrace this opportunity because of its immense benefits.”
In September last year, Bank of Uganda granted its first Islamic banking license to Salaam Bank Uganda Ltd, a subsidiary of a Djibouti-based bank after Parliament passed legislation to authorize Islamic banking, which President Museveni signed into law in August 2023.
