President Yoweri Kaguta Museveni has introduced Salaam Bank, the inaugural licensed Islamic Banking institution in Uganda. This establishment marks a significant milestone in the financial landscape of the country.
Islamic banking operates on principles derived from Islamic law. Unlike conventional banking, Islamic banking prohibits the payment and receipt of interest, instead focusing on profit-sharing mechanisms. These banks pursue returns on investments through Sharia-compliant avenues.
The President unveiled Salaam Bank during Ramathan dua prayers, organized by the Office of the National Chairman-NRM at Kololo Ceremonial Grounds. In his address, President Museveni extended wishes for a fruitful Ramathan to the Muslim community and invoked prayers for their protection.
Furthermore, President Museveni emphasized the importance of engagement in income-generating activities to enhance livelihoods. He highlighted sectors such as agriculture, manufacturing, services, and ICT as avenues for poverty alleviation, underscoring the government’s efforts to facilitate access to startup capital through various initiatives.
Acknowledging concerns regarding Islamic principles and financial programs like the Parish Development Model (PDM), President Museveni expressed willingness to address these issues in collaboration with Muslim leaders.
President Museveni reaffirmed the government’s commitment to non-discrimination, stressing equal treatment for all citizens regardless of religion or ethnicity. He cited examples of inclusivity, including Uganda’s reentry into the Organization of Islamic Cooperation (OIC) during his tenure.
Welcoming Salaam Bank to Uganda, President Museveni assured the institution of support for its operations in the country, acknowledging the potential of Uganda’s growing market.
The event saw the presence of foreign dignitaries, including the Minister of Foreign Affairs and International Cooperation of Djibouti, who conveyed greetings from Djibouti’s President and praised Salaam Bank’s aspirations for continental expansion.
Hajjat Hadijah Uzeiye Namyalo, ONC Manager, expressed gratitude to President Museveni for supporting the Muslim community and economically empowering them through the establishment of Salaam Bank.
In addition, Sheikh Erias Kigozi, Wakiso District Kadhi, thanked President Museveni for his leadership and vision in facilitating the creation of an Islamic bank aligned with Sharia law.
Board Chairman of Salaam Bank, Mr. Ibrahim M. Abdirahman, acknowledged President Museveni’s instrumental role in enabling the bank’s establishment and highlighted the significance of Islamic finance in promoting economic empowerment and inclusive growth.
The licensing of Salaam Bank follows legislative authorization and presidential approval, reflecting Uganda’s commitment to embracing diverse financial systems. The event garnered attendance from Salaam Bank officials, government representatives, and religious leaders, marking a pivotal moment in Uganda’s financial evolution.
