Salaam Bank, formerly Top Finance Bank, has become the first financial institution in Uganda to be granted a license by the Bank of Uganda to offer Islamic Banking services. This followed the signing and handover of the operating license by the Deputy Governor, Bank of Uganda Michael Atingi-Ego to the Shareholders’ representative, Salaam Bank, Mr. Michael Mande, on Friday September 08th 2023.
Speaking during the event, the Deputy Governor Dr. Michael Atingi-Ego reaffirmed the government and indeed Bank of Uganda’s salient mandate to provide an enabling economic environment that facilitates both local investments and attracts foreign investors.
“As a strategically located regional economic hub, we have to keep in tandem with the global trends if we are to fully support the local investors and at the same time attract foreign investments. We have to observe and study what is taking place around us and tailor it to suit our local needs while meeting international demands. This is the reason why we are here today, to license the first Ugandan bank that will offer Islamic Banking services. The event today is a culmination of several consultative dialogues among the various stakeholders,” said Mr. Atingi-Ego.
Salaam Bank CEO, Mr. Michael Mande expressed gratitude thanking all stakeholders who participated in the meticulous process that enabled the creation of a legal framework for Islamic Banking to finally take off in Uganda.
“From the government through the Ministry of Finance, our regulator Bank of Uganda, the Parliament of Uganda and all sector players that made this possible, today marks a giant step for us all. Salaam Bank, may be the first to be licensed to offer Islamic Banking solutions in Uganda, but this victory is for every Ugandan,” said Mr. Mande.
He noted that while the occasion called for a major celebration, it also signified the work ahead for all the sector players.
“The baton is now in our hands. It’s time to walk the talk. We will soon complete our branch distribution plan and other service channels to ensure that we reach out to a wide range of customers as soon as possible because Islamic banking has long been awaited by so many across the country. At the moment we are offering limited services such as account opening but a few months from today we shall be fully operational. Salaam Bank is fully operating on Islamic Banking principles and open to serve everyone, equally,” clarified Mr. Mande.
He further revealed that the bank has recently been acquired by the Djibouti-based Salaam Africa Bank and renamed Salaam Bank. The Bank has started rebranding to the new identity.
The Parliament of Uganda diversified financial solutions operations with the enactment of laws that were eventually assented to by HE President Yoweri Museveni. The Financial Institutions (Amendment) Act, 2023, in particular, set the ball rolling for the commencement of Islamic banking in Uganda.
Islamic Banking is a financial system guided by the principles of Shariáh but the Bank of Uganda together with the Ministry of Finance, Planning and Economic Development will maintain the oversight role in its licensing and operation in Uganda.