Museveni woos Islamic banks

KAMPALA.

President Museveni has urged Islamic banks to open businesses in Uganda and enable investors access interest-free loans.

President Museveni, who is on a three-day State visit to Qatar, told a delegation of 60 members of the Qatar Chamber and Qatar Business association at the Sheraton Grand Hotel in Doha, Qatar on Wednesday that high commercial bank interest rates pose a challenge to doing business in Uganda.

According to the statement issued by State House, Mr Museveni told the Qataris business community that Uganda plans to open an investment office in Doha, Qatar to avail investment information on trade and investment opportunities in Uganda.

“Uganda will open an investment office in Doha. It will also work on the promotion of tourism. It will be part of Uganda’s Embassy in Qatar. There is free entry and exit of investors in our country. Let the Islamic Bank come to Uganda and save investors from the challenge of high interest rates,” the President said.
Islamic Banking advances interest-free loans to viable projects.

In 2015, Parliament amended the Financial Institutions Act 2004 to lift restrictions for Islamic Banks and other conventional banks that would want to offer Islamic banking services and products.

President Museveni, in company of his wife Janet, told the meeting that Africa was close to Asia and, therefore, easy for the two continents to trade.

He reminded them that the African continent has a population of about 1.25 billion people, adding that the population is expected to increase to about 2.5 billion people in the next five years.

Available opportunities
President Museveni also told the Qataris that there are investment opportunities in the Uganda’s mineral sector.
“The areas where we need support and investment are the minerals development. We do not believe in exporting unprocessed minerals. You can invest in another iron ore processing industry since the one operated by the Chinese today produces only 300,000 tonnes of steel per annum,” he said.

Key issues discussed

President Museveni is on a three-day State visit to Qatar.
Meeting. The President met a delegation of 60 members of the Qatar Business association and briefed them about the business opportunities in Uganda.
Loans.

He told the businessmen to come and save investors from the challenge of high interest rates.
Other area.The President also informed the Qataris about the investment opportunities in the mineral sector.