Uganda – Government approves Islamic Banking regulations

The Central Bank will soon publish the new Islamic Banking regulations recently approved by the government of Uganda.

Islamic Financial Services Board (IFSB) is a prominent body in establishing standards for Islamic Banking. In December, the Central Bank became an associate member of IFSB, according to The Standard.

Governor Emmanuel Tumusiime-Mutebile in a speech at Uganda Bankers’ Association said the Bank will encourage applications from financial institutions to offer sharia-compliant products.

Countries such as Kenya, Uganda and Ethiopia hold a minority of Muslim population, and yet, are focused on expanding the sector with proper financial access. In recent years, Nigeria, Morocco and Senegal were inclined towards interest-free banking. Now Uganda has joined the list to develop the Islamic Banking sector in Africa.