2023-09-11 11:18:00
(Ecofin Agency) – While 14% of Ugandans are Muslim, Islamic banking products might contribute to the financial inclusion of people who shun conventional banks for reasons linked to their religious beliefs.
The Ugandan Central Bank announced, in a press release published Friday September 8, the granting of an Islamic banking license to the Djiboutian group Salaam African Bank.
« We believe that Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector “, declared the deputy governor of the Bank of Uganda, Michael Atingi-Ego, quoted in the press release.
This Islamic banking license is the first of its kind that the East African country’s banking system regulator has granted to a bank since the adoption of a law relating to Islamic finance last June.
In Uganda, where around 14% of the population is Muslim, Islamic banking products might contribute to the financial inclusion of people who shun conventional banks for reasons linked to their religious beliefs.
Salaam African Bank entered the Ugandan market in August 2022, through the acquisition of Top Finance Bank, as part of a broader expansion strategy in East Africa.
The Djiboutian banking group already has subsidiaries in Kenya, Ethiopia and Malaysia.
Also read:
06/07/2022 – Uganda: banks called upon to train their staff in digital finance
07/13/2020 – Uganda: pressure from the Central Bank forces commercial banks to lower their interest rates
05/21/2021 – The Islamic bank Salaam African Bank buys a microfinance structure in Kenya
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