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Uganda: Benefits from the OIC

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Points of Essence:

  • Uganda will see an Islamic bank set up within 2-3 months’ time which is a collaboration between  the Islamic Development Banking and Uganda’s National Bank of Commerce.
  • Apart from that, the ICD, which is the finance arm of the Islamic Development Bank will also set up its operation in Uganda. ICD normally caters for small and medium enterprises.

Tuesday, 5th August, 2008

Olive Kigongo says the OIC was a success” Olive Kigongo says the OIC was a success”

THE Uganda National Chamber of Commerce and Industry (UNCCI) recently hosted the Organisation of the Islamic Conference (OIC). James Odomel talked to the UNCCI president, Olive Kigongo

QUESTION: What have Ugandans achieved from hosting OIC?
A lot has been achieved. The forum ran for three days and from day one, there was a lot of networking. Information was exchanged and many presentations were made by Ugandan institutions like the Uganda Investment Authority and the Capital Markets Authority. The foreign participants got interested particularly in coffee. This was after the keynote address by the President who is an advocate of value-addition to our produce.

Which delegations showed interest?
Delegations from Pakistan, Oman and Saudi Arabia expressed interest in coffee, mining and real estate. Talks are going on between Bugisu Coffee Growers Association and Star Coffee on one hand and the Islamic Development Bank on the other hand for assistance in promoting and processing of coffee.

Also, a memorandum of understanding was signed between a company in Bangladesh and a Ugandan company. Also, a Pakistan engineering company called Mirza Associates Engineering Services (PVT) is interested in the construction sector.

Some people don’t advertise their deals and there are more deliberations taking place.
As as a follow up to the OIC, Honourable Isaac Musumba has led a delegation of Busoga business people to Jeddah for talks with the Islamic Development Bank for possible financing. The benefits are enormous in terms of joint ventures and financing.

Are there any joint ventures in banking?
The Islamic Development Banking has teamed up with the National Bank of Commerce. They are in the process of opening up the Islamic bank here. It is complicated so they have to do a lot of training, studies and sensitisation. The bank will be opened in two to three months. The deal has already been signed.

There is also ICD, which is the finance arm of the Islamic Development Bank. They participated in the forum and held a presentation. They are coming here to meet central bank officials to see how they can set up an institution. ICD normally caters for small and medium enterprises, so we are excited about that.

Tell us about the Kuwait fund to the OIC low developed countries
In April, I attended the Islamic Economic Forum in Kuwait. During the presentations, one of the things that was mentioned was the Hunger Fund, which is supposed to be accessed by the OIC members especially low developed countries like Uganda. We can access some of this money to promote agriculture, which is more essential, not only for our consumption but also for export. I request the Government to consider it carefully because we have to work with them to access this money.

What does it take to access this money?
It can be accessed through the Government. I request the Government to do it jointly with the private sector since we are stakeholders.

Why has the Government taken long to request for the money?
It is not too long. It was announced in April so it is about three months ago. We are going to access it. This will make us a garden of the Gulf countries since our backbone is agriculture.

Were there some shortcomings during the OIC?
Yes, there were many problems. We received the funds two days to the opening. That was late. Also, the campaign took too long for people to understand. It was only towards the real function that people responded. We were overwhelmed by the numbers. It turned out to be colourful.



Written by Suapi Shaffaii

August 6, 2008 at 3:30 am

Posted in General Issue

Tagged with ,

One Response

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  1. i would like to Know where the islamic bank is located.And i case of any inquiry, what contact.
    Thank you


    January 11, 2009 at 5:19 am

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