IslamicFinance.de

Uganda’s Muslim leaders have condemned the “ignorance” of church leaders trying to block Islamic banking legislation in the majority-Christian nation. Earlier this year, parliament amended a finance bill to introduce Islamic insurance. However, church leaders led by Archbishop Stanley Ntagali, head of the country’s Anglican church, has urged President Yoweri Museveni to reject the legislation. Nsereko Mutumba, spokesman for the Uganda Muslim Supreme Council, said the church leaders were just ignorant of the Quran, it has nothing to do with ISIS, Boko Haram or any other group claiming to kill non-Muslims. The Bank of Uganda is currently establishing a sharia advisory board to regulate and supervise Islamic banking.

The introduction of Islamic finance could be boon to development in Africa, say experts. Beyond the religious aspect, Islamic finance has been identified by many experts as a way to avoid the risks associated with speculation. Global ratings agency Standard & Poor’s (S&P) said in a recent report that new regulations and fiscal incentives could accelerate Islamic finance development in Africa, which could help the continent fund its infrastructural needs. Aware of the challenges, the African Institute of Islamic Finance has launched several initiatives aimed at developing the Islamic Finance sector. Besides, Ivory Coast is about to issue its first Sukuk in the amount of 350 billion CFA francs (roughly $700 million) with the support of the IDB.