Uganda legalizes ‘Halal Banking’

UgFlag[1]Last month, Ugandan parliament amended the Financial Institution Act and introduced Islamic banking that is consistent with the Islamic Shari’ah (law) and guided by Islamic economic.

Ugandan president Yoweri Kaguta Museveni has been advocating for Islamic banking model also known as Halal banking – where instead of a bank imposing interest (Capitalism Is Jewish Usury), it shares the profit or loss it accrues with clients.

In 2009, the Vatican had urged western banks to adopt Islamic banking system.

The ethical principles on which Islamic Finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service”. Osservatore Romano noted for instance that Western banks could use tools like Islamic Bonds known as sukuk or collateral, which involves aggregating assets and repackaging them into the form of marketable securities,” said Vatican newspaper Osservatore Romano.

On February 22, 2016, Baker Kasawuli, a Ugandan Christian finance expert claimed Islamic banking will boost country’s growing economy.

Islamic banking and transactions are guided by some of the most passionate principles. Some of the key tenets of Islamic Financing are that the lender and borrower should share assets as well as risks, that it should provide contractual certainty and that all the elements in the transaction must be ethical,” Kasawuli said.

Islamic Finance also provides for the Qard el-Hasana or a benevolent loan. This is a zero return loan that the Qur’an encourages believers to extend to “those who need them”. Generally used for development or social projects, lenders are allowed to only charge a service fee to cover the administrative and transaction costs of the loans,” Kasawuli added.

Conventional banks provide these products in same form. However, there is a huge difference in the detail of how all this pans out. Islamic Banking and Finance prohibits Riba (usury/ interest), Gharar (uncertainty) and underlines the fact that the lending-borrowing relationship must be based on risk sharing,” Kasawuli said.

Access to capital is very important for the commencement and growth of economic activity. But the form in which capital is provided is of paramount importance. Islamic finance is the embodiment of the type of capital that will help boost a growing economy like ours. It can inspire the new, first time entrepreneurs and provide a helping hand to the existing ones, many of whom are often auctioned off by our banks just as they are about to succeed!,” Kasawuli concluded.

Uganda is home to over 32 million (12%) Muslims. They have their own separate schools and associations. The country has many mosques. The largest mosque is in capital city of Kampala that was funded by Libyan leader Qaddafi who was removed because he became a threat to Israel.

Uganda was one of the British colonies offered to the World Zionist Congress as a homeland for the European Jewry. The offer was condemned by the Vatican and later dropped in favor of Palestine. Since its independence in 1962, Kampala has kept very close military and economic relations with the Zionist entity. Country’s former military dictator, Idi Amin Dada, like Panama’s dictator Noriega, received military training in Israel.

Ugandan president Museveni and Rwandan president Paul Kagame are Israel’s top African allies. Both have accepted thousands of African refugees from the Zionist entity in return for military aid.

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