Uganda announces the upcoming opening of its financial market to the Islamic bank, which excludes the payment of interest, in order to widen access to funding sources.
To this end, the authorities have approved the regulations that the central bank has recently issued as part of a wider effort to promote the integration of the financial modality in this country of East Africa.
“The central bank will be open to requests from financial institutions to offer Islamic-compliant products,” Governor Emmanuel Tumusiime-Mutebile told the Ugandan Bankers Association.
Uganda’s decision to allow Halal finance comes after several African countries have shown their voices in recent years, such as Nigeria, Morocco and Senegal, as well as others who intend to do so. Kenya and Ethiopia.
Banks and other Islamic financial institutions operate according to religious principles that include the prohibition of paying interest and avoiding direct monetary speculation.
In December, the Ugandan Central Bank became an associate member of the Islamic Financial Services Council, one of the region’s leading regulators of industry.
