Museveni Launches First Interest Free Bank to Fight Poverty

Uganda’s President Yoweri Kaguta Museveni has launched the country’s first-ever interest free commercial Islamic bank with an intension to curb poverty in the country.

The event took place during Ramadan dua prayers organized by the Office of the National Chairman-NRM at Kololo Ceremonial Grounds on March 27, 2024.

“I welcome Salaam Bank to Uganda. This is a big market with a population of 48 million now. In the next 27 years, the population of Uganda will be 106 million. You are going to start right away to serve the people of Uganda,” he said.

Speaking during the event, President Museveni wished the Muslims a fruitful Ramadhan and prayed that God protects them.

He also reiterated his call to believers to make sure that they take part in income-generating activities. 

Additionally, he noted that this was the only way to improve their livelihoods.

“Where I come from in Ntungamo, we don’t entertain laziness. As a norm on that side, every person must have what he/she does like rearing animals, growing crops, fishing, manufacturing and artisanship.

Therefore, when I got an opportunity to lead Uganda, I started to encourage you to fight poverty and create wealth,” he said.

Also Read: Museveni Son Who Threatened to Take Over Nairobi Appointed Military Chief

“We said there are four ways through which a person can fight poverty. The first sector is commercial agriculture, then manufacturing, the third sector is services like transport, hotels, among others and finally ICT.”

Banking laws in Islam

In Islam, all banking services are strictly based on Islamic principles. Islamic banking does not allow paying and receiving interest but rather it is based on profit sharing. Islamic banks focus on generating returns on investments through investment tools that are “Sharia” compliant.

Museveni however assured Muslims that soon he will have a meeting with their leaders so that they discuss Parish Development Model (PDM) and riba and how Muslims can benefit from the program without any limitations.

“If you convince me that the PDM and Emyooga money has some contradictions as per the Islamic teachings, then I will find a way how I send your money direct to this bank.”

Museveni welcomes interest free bank

President Museveni welcomed the bank to Uganda and assured them of support to smoothly run their operations in the country.

The Minister of Foreign Affairs and International Cooperation of Djibouti who led the Djiboutian delegation to Uganda, Mahmoud Ali Youssouf, extended warm greetings of the President of Djibouti,  Ismaïl Omar Guelleh to President Museveni.

The ONC Manager, Hajjat Hadijah Uzeiye Namyalo thanked President Museveni for loving and always supporting Muslims in the country.

She also thanked the President for economically empowering Muslims through granting them an Islamic Bank.

“Your Excellency, you are a true definition of a God-sent leader who feels empathy for us the poor. Your Excellency, we are all gathered here because you love us and we love you too and for a particular purpose, you are ready to empower us,” Hajjat Namyalo said.

History of Islam in Uganda

President Museveni further said as NRM, they don’t believe in discrimination, and they serve all Ugandans equally irrespective of their religion or tribe. He said such attribution has enabled the country to develop socially and economically.

“When Amin left, those of Lule dislodged Uganda from the Organization of Islamic Cooperation (OIC) saying that the majority of Ugandans are not Muslims but when we took overpower, we readmitted the country back to OIC,” he said.

“I told them that some of my people are Muslims so they must belong to such an organization. It was also not a taboo to belong to OIC even if you are not a Muslim. We believe in politics of interest not identity.”

Also Read:  Museveni Shares Tips on Being Successful Politician

He also recalled how the establishment of the Islamic University in Uganda was met with resistance.

“When the Islamic University in Uganda was beginning, some people were against it. I said no, leave it to operate. Now, it has produced so many graduates of different professions including non-Muslims. When they told me about Islamic banking, I told them I have no problem with it. I said we should let them operate and that is why we have Salaam Bank now.”