KAMPALA, UGANDA – Salaam Bank Ltd has emerged as the Best Green and Real Estate Financing Institution in Uganda for 2024/2025, underscoring the bank’s commitment to sustainable finance and responsible investment.
Salaam Bank Limited, launched in Uganda last year, is the first commercial bank and financial institution to offer Islamic banking in the country, ushering in what financial experts say is a new era of financial possibilities rooted in ethical principles.
The prestigious award, conferred by Public Opinions, recognises Salaam Bank Ltd’s exemplary performance in delivering Sharia-compliant financial solutions that promote environmental sustainability and economic growth.
Mr. Michael Mande, Managing Director and Chief Executive Officer of Salaam Bank Ltd, attributed the bank’s success to its customer-centric approach and innovative financial products.
“Our focus on green financing and real estate financing has enabled us to provide tailored solutions that meet the evolving needs of our customers while promoting sustainable development,” he said.
At its launch on March 27, 2024, presided over by President Museveni, the Salaam Bank Ltd Chairman, Mr. Ibrahim Abdirahman informed the public that the bank is open to serving all faiths but with strict adherence to ethical values that protect humanity.
“The bank does not fund activities that harm humanity and the environment,” said Mr. Abdirahman, adding that the bank will offer the government a chance to benefit from Sharia-compliant bonds (Sukuk), from which it can raise capital for various infrastructure projects without incurring interest-based debt
“Sukuk attracts investments from individuals and institutions seeking Sharia-compliant financial instruments from the international market, thereby attracting direct foreign investment into the country” he said.
Salaam Bank Ltd’s dedication to responsible investment and sustainable finance has earned it a reputation as a trusted and innovative financial institution.
The bank’s Sharia-compliant financial products and services, including green financing and real estate financing solutions, have been designed to support the United Nations Sustainable Development Goals (SDGs) and Uganda Vision 2040.
Salaam Bank Ltd launched its operations in 2023 as the country’s first Islamic financial institution, after getting linsenced by the Central Bank of Uganda, offering a range of Shariah-compliant products and services including savings accounts, home finance, asset finance, personal finance, and business finance.
President Yoweri Museveni, on March 27, 2024, presided over the national launch of the Bank, which was attended by thousands of Ugandans.
Basically, in Islamic banking, it is not allowed to pay and receive interest, but rather, it is based on profit sharing.
Islamic banks focus on generating returns on investments through investment tools that are “Sharia” compliant.
Salaam Bank Ltd received an islamic commercial banking licence on September 8, 2023, and the licence was personally handed over by acting Bank of Uganda governor Dr. Michael Ating-Ego
While handing over the license, Atingi-Ego said that the Central Bank was committed to providing oversight and support to Salaam Bank as it embarks on this new journey.
“Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector,” he noted.
The Salaam Bank Ltd operations in Uganda have since allowed Ugandan nationals to enjoy 100% Islamic financial products, allowing the introduction of quality products and services to Ugandan banking.
The bank is a Ugandan subsidiary of Salaam African Bank of Djibouti, who acquired Top Finance Bank in August 2023.
According to its website, its launch in Uganda followed the expansion in Asia, particularly in Malaysia, as well as in Ethiopia and neighbouring Kenya.
The issuance of the license in Uganda followed the signing of the Financial Institutions (Amendment) Act 2023 in January 2024 by President Museveni, which paved the way for the introduction of Islamic Banking in the country.
Salaam Bank Ltd was last year been named the Best New Islamic Bank in in 2023 at the prestigious Islamic Finance News (IFN) Global Awards 2024.
This coveted global award recognizes the bank’s commitment to providing innovative and customer-centric Shariah-compliant financial solutions, as well as its significant contributions to the growth and development of the Islamic finance industry in Uganda.
Public Opinions, a renowned organisation that promotes responsible investment and excellence in various industries, presented the award to Salaam Bank Ltd.
The recognition is part of an initiative to promote responsible investment and sustainable finance in Uganda, in association with the Office of the Minister of State for Investment and Privatization, Ministry of Finance, Planning and Economic Development.
Salaam Bank Ltd will be featured in the Uganda Development Champions Journal for Certified Responsible Investments, a publication that showcases organisations that have demonstrated a commitment to responsible investment and sustainable finance.
