IN a landmark development for Uganda’s financial landscape, President Yoweri Museveni officially launched the national operations of Salaam Bank on Wednesday in Kampala. This move marks the country’s entry into the realm of interest-free commercial Islamic banking, a significant step towards fostering financial inclusivity and attracting Muslim investors.
During the launch ceremony, President Museveni highlighted the potential of Islamic banking to bolster Uganda’s financial sector significantly. He emphasised its role in attracting investments from the Muslim community, underlining the government’s commitment to fostering equal opportunities for all citizens, irrespective of religious or tribal affiliations.
‘I encourage you to fight poverty and create wealth,’ President Museveni urged attendees, underscoring the importance of economic empowerment for national development.
Addressing initial scepticism towards Islamic institutions in Uganda, President Museveni recounted his support for the establishment of Uganda’s Islamic University, which has since produced graduates across various disciplines, including non-Muslims. He reiterated his stance on embracing diversity and promoting inclusive economic policies, citing the establishment of Salaam Bank as a testament to this commitment.
‘Salaam Bank represents our dedication to ensuring financial services are accessible to all Ugandans, regardless of their religious beliefs. This initiative aligns with our vision of an inclusive economy,’ President Museveni affirmed.
Salaam Bank Uganda, a subsidiary of a Djibouti-based bank, received its Islamic banking licence from the Bank of Uganda in September the previous year, following parliamentary approval of legislation authorising Islamic banking practices. The bank’s launch represents a culmination of efforts to expand financial services in alignment with Islamic principles.
Sheikh Erias Kigozi, representing Uganda’s Muslim community, expressed gratitude to President Museveni for his leadership and support in facilitating the establishment of Salaam Bank. He commended the president for promoting religious tolerance and creating an enabling environment for Islamic financial institutions to thrive.
‘President Museveni’s commitment to inclusivity has opened doors for Muslims to participate fully in Uganda’s economy. Salaam Bank is a testament to this progress,’ Sheikh Kigozi remarked.
Djibouti’s Foreign Minister Mahmoud Ali Youssouf conveyed warm regards from President Ismail Omar Guelleh, emphasising the Salaam Group’s commitment to advancing financial inclusion across Africa. He praised Uganda’s efforts in fostering a robust financial system and expressed confidence in Salaam Bank’s contribution to the country’s economic growth.
‘We commend Uganda’s proactive approach to financial innovation and its efforts to accommodate diverse economic models. Salaam Bank’s launch heralds a new era of inclusive finance in the region,’ Minister Youssouf stated.
In his remarks, Salaam Bank Chairman Ibrahim M. Abdirahman highlighted the widespread acceptance of Islamic banking principles among Uganda’s population, including non-Muslims. He underscored the bank’s commitment to ethical finance and its role in promoting sustainable development objectives.
‘Salaam Bank is founded on principles of fairness and transparency, catering to the needs of all Ugandans. Our aim is to foster economic growth while upholding Islamic values,’ Chairman Abdirahman affirmed.
The launch of Salaam Bank comes amid favourable projections for the global Islamic finance industry, with S&P Global Ratings forecasting a 10 percent growth in 2023-2024. Despite economic challenges, Islamic banking continues to expand, driven by its adherence to ethical principles and growing demand for Sharia-compliant financial services.
With the inauguration of Salaam Bank, Uganda takes a significant stride towards financial inclusivity and sustainable economic development, signalling its readiness to embrace diverse financial models in pursuit of national prosperity.