By Frank Kamuntu
HE Yoweri Kaguta Museveni has officially launched the national operations of Salaam Bank in Uganda, the first Islamic bank in Uganda.
This was at an event held at Kololo ceremonial grounds organized by the Office of the National Chairman (ONC) headed by Hajjat Hadijah Namyalo proudly known as Chief Muzzukulu.
The same event saw the Muslim fraternity gathering in thousands for Duwa Prayers, in fact, it is these numbers that left Museveni smiling ear to ear commending Hajjat Namyalo and her ONC team for massive mobilization and uniting bazzukulu.
”Hajjat Namyalo and your team you are doing an incredible job, am very happy. Thank you for bringing together all these masses of bazzukulu,” thrilled Museveni noted.
Hajjat Namyalo in her remarks informed the President that for long, Muslims had yearned for a financial system/mechanism that doesn’t contradict their religion’s principles and now that they have Islamic banking officially legalized in Uganda, they are ready to support Museveni in 2026 and beyond.
”Mr President sir, you answered the key prayer of Muslims in Uganda the day you signed a law backing Islamic Banking in Uganda, all these thousands of bazzukulu gathering here today have come to thank you and they have since joined other bazzukulu across the country to order you sir, to stand again in 2026, omalako jajja sigala ku ballot,” Namyalo appealed to the President.
Salaam Bank Uganda, a subsidiary of a Djibouti-based bank, received the licence at the central bank late last year after the Ugandan parliament passed legislation to authorize Islamic banking, which President Museveni signed into law in August 2034.
The legislation removed the requirement to establish a “central sharia advisory council”, which the Bank of Uganda had opposed.
In his remarks, Museveni said he will soon meet elders of Muslims in Uganda and they analyze for him how the current government programs like the Parish Development Model contradict with some principles of their religion, and if he is convinced, the government will introduce pro-Islamic programs.
“I welcome you Salaam Bank to Uganda. This is a big market. The population of Uganda is 48 million now,” the President said adding; “In the next 26 years, the population of Uganda will be 106 million, so allow more Islamic banks to come here.”
Islamic Banking refers to the banking services that follow Islamic principles, which bar the charging of interest on a loan (RIBA). Instead, it provides for the lender to take interest in the beneficiary project and at the end of it, share in the profits or losses of the project.
Apart from the reduced risk of failure to pay back, enterprises get an additional advantage of expert or technical contribution by the lender who ensures the success of the credit.
It’s against the above background that Museveni noted; “Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector by bringing more Muslims to the money economy.”
I welcome Salaam Bank. Uganda is a big market with a population of 48 million, and in the next 27 years, the population will be 106 million.
Therefore, Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector by… pic.twitter.com/Tb4Is3qnro
— Yoweri K Museveni (@KagutaMuseveni) March 27, 2024
