Government through the Microfinance Support Centre Limited has launched Islamic Financing in the western district of Kisoro district.
The Islamic Banking system, website like this also known as the sharia compliant finance follows the Islamic Shari’ah (law) which bars charging of interest.
During the launch that took place on Thursday in Kisoro district , physician the Microfinance Support Centre Limited handed out to Chahi Dukore Savings and Credit Co-operative Shs. 150 million for utilization by the members without interest, making it the first micro finance institution in the country to benefit from Islamic financing.
While handing the money to the SACCO members, the Chairperson Microfinance Support Centre Justine Bagyenda who is also charged with Bank Supervision at Bank of Uganda urged Ugandans to make good use of Islamic financing to invest in their ventures that will result into development.
Bagyenda said that Government has already secured funding from the Islamic Development Bank which will be accessed by financial institutions, registered groups, and companies’ once they apply and fulfill the requirements.
The Director of Microfinance Support Centre Limited John Peter Mujuni said that Islamic financing paves way for the sharing of net profit/loss and the risk involved in a proportional manner between the lender and the beneficiary. He says that, if a financier is expecting a claim on profits of a project, it is necessary that he/she should also carry a proportional share of the loss of that project.
Hajji Shafique sekandi The Kisoro district resident commissioner asked the members of the Saaco to utilize the funds to grow more potatoes, onions and produce more milk among others saying that they are on high demand in the district by the locals, factories and business people from all over the country and outside the country.