matia kasaija Islamic Bank in Uganda
Kasaija said in a statement that President Museveni has already accepted ICD's offer to partner with Government and Private Enterprises in Uganda. FILE PHOTO

Kasaija has said that the government of Uganda is committed to setting up an Islamic bank in Uganda in partnership with the Islamic Corporation for the Development of the Private Sector.

Finance Minister Matia Kasaija has affirmed the Government of Uganda commitment to establish an Islamic Bank in Uganda in partnership with the Islamic Corporation for the Development of the Private Sector ( ICD) and the Private Sector in Uganda.

This was revealed during the first meeting on the formation of the Islamic Bank in Uganda and the partnership offered by ICD to Uganda.

ICD is a multilateral development financial institution and member of the Islamic Development Bank group.

The meeting was also attended (virtually) by Ayman Amin Sejiny the Chief Executive Officer of ICD who expressed gratitude to President Yoweri Museveni and Uganda for accepting to partner with ICD to ensure that an Islamic Bank is established in Uganda.

In a statement, Minister Kasaija said President Museveni has already accepted ICD’s expression of interest to partner with Government and Private Sector Enterprises in Uganda.

He said the formation of an Islamic Bank will not only boost financial inclusion in the country but also increase access of the Private Sector to Capital and promote job creation.

“The Government looks forward to taking advantage of the long-term project financing, technical support and advisory services offered by ICD,” said Kasaija.

Ministry of Finance will be a shareholder on behalf of Uganda with 50% shares, ICD will have 33% shares while the Private Sector in Uganda will take 17%.

Meanwhile, the Private Secretary to the President, Dr Hillary Musoke said the formation of an Islamic Bank and long term project financing under this strategic partnership will greatly benefit and enable the youth to join and contribute to the industrialization and import substitution drive in the country.

“We are very excited and ready to support the expedited implementation of His Excellency the President’s directives regarding the strategic partnership with ICD,” Musoke said. 

This, however, comes at a time when the ministry has already released an economic report for March. The report shows the annual headline inflation increased in March 2021 to 4.1% from 3.8% in February 2021, largely driven by an increase in prices for some food crops and charcoal.

High-frequency economic indicators show continued improvements in economic activity during February and March 2021, while sentiments about doing business remain positive.