Uganda to Host Islamic Finance Convention
Kampala — The Sub-Saharan Islamic Finance Convention 2016 will take place in Kampala on May 10th and 11th.
There are two basic principles behind Islamic banking. The sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest.
to a statement, the purpose of the Convention is to create a strong platform for the growth of the industry that will not only help to establish Uganda as an exciting investment destination but also attract the support and enable the development of the broader Sub-Saharan market.
Africa is one of the world’s largest untapped growth markets for Islamic finance, spanning Islamic banking, Takaful, Sukuk and capital market activities.
This is the result of both positive trends – a rapidly growing population, increased consumer spending and robust GDP growth across the continent – and economic need. Africa has a huge infrastructure deficit and governments need new tools for raising capital.
Limited access to finance is a developmental challenge for Africa and many SMEs, individuals and entrepreneurs eschew the mainstream banking system. Islamic finance can become an appealing and important source of capital for small companies and individuals – and is well positioned to be a catalyst for driving financial deepening in Africa.
Population growth, increased consumer spending power, and the role of Islam in Africa’s demographic makeup, mean that Islamic finance is playing an important role in the economic trajectory of the continent.
Africa’s challenges, notably infrastructure financing and the need for wider access to financial services, also provide an opportunity for the Islamic finance industry to grow. Africa is now home to over 250 million Muslims, projected to grow to over 385 million by 2030.
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