UGANDA:
After years of ongoing discussions at parliamentary level, Uganda’s
cabinet of ministers has finally approved the introduction of Islamic
finance in the republic. The government is reported to soon approve three
laws within the Financial Institution Amendment Act.
Maria Kiwanuka, the Ugandan finance minister, has urged all parties who
are in favor of introducing Islamic banking in the country to persuade
their respective members of parliament (MP) to pass the Islamic Banking
Bill 2014 into law. “What I can say is the cabinet has agreed to allow
this kind of banking. It was forwarded to the parliament committee
responsible and if the MPs pass the bill into law then we shall roll
out,” she said.
In furtherance to the introduction of Islamic banking, the Ministry of
Finance also heeded the lack of trained and skilled professionals as a
challenge that could impede the implementation of Shariah compliant
banking in the republic. Industry players have also expressed their
caution in this regard due to the foothold of conventional banking as
well as the lower economic power held by Ugandan Muslims.
Nonetheless, the prospects remain relatively promising with a 12% Muslim
population or approximately three million people. The government is
working together with the Islamic Chamber of Commerce, Industry and
Agriculture to introduce Islamic finance in the country. Should the
legislation allowing Islamic banking be passed, Uganda will join its
African counterparts such as Nigeria and Kenya in offering Shariah
compliant financial products in the region. Uganda will also be afforded
opportunities in the areas of mining, oil and gas, agro-industries,
export and import trade, science and technology as well as agriculture.
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