Salaam Bank Ltd has been named the Best Green and Real Estate Financing Institution in Uganda for 2024/2025, highlighting its commitment to sustainable finance and responsible investment practices.
Launched in Uganda in 2023, Salaam Bank is the country’s first commercial bank to offer Islamic banking, marking a significant milestone in the country’s financial landscape. Experts have praised this as the beginning of a new era in banking that integrates ethical principles with financial solutions.
The prestigious award, presented by Public Opinions, recognizes Salaam Bank’s outstanding contributions in providing Sharia-compliant financial products that foster environmental sustainability and economic development.
According to Mr. Michael Mande, Managing Director and CEO of Salaam Bank, the bank’s success lies in its customer-focused approach and its ability to offer innovative, sustainable financial products. “Our emphasis on green and real estate financing has allowed us to offer tailored solutions that meet the evolving needs of our customers while promoting sustainable development,” he said.
During the launch of Salaam Bank on March 27, 2024, President Museveni, who officiated the event, was informed by Chairman Mr. Ibrahim Abdirahman that the bank serves all faiths, while strictly adhering to ethical principles that protect both humanity and the environment.
“The bank does not fund activities that harm humanity and the environment,” said Mr. Abdirahman. He also highlighted the bank’s initiative to offer the government Sharia-compliant bonds (Sukuk), which could provide a non-interest-based method for raising capital for various infrastructure projects.
“Sukuk attracts investments from individuals and institutions looking for Sharia-compliant financial instruments, bringing direct foreign investment into the country,” he added.
Salaam Bank’s commitment to responsible investment has made it a trusted and innovative financial institution. Its Sharia-compliant financial services, including green financing and real estate solutions, align with the United Nations Sustainable Development Goals (SDGs) and Uganda Vision 2040.
The bank, licensed by the Central Bank of Uganda in September 2023, offers a range of Sharia-compliant products such as savings accounts, home finance, asset finance, personal finance, and business finance. It operates as a Ugandan subsidiary of Salaam African Bank of Djibouti, which acquired Top Finance Bank in August 2023.
Islamic banking, which prohibits paying or receiving interest and instead focuses on profit-sharing, has become increasingly popular in Uganda, with Salaam Bank playing a pivotal role in this financial transformation.
Following the issuance of its Islamic banking license, Salaam Bank has brought high-quality financial products and services to Ugandans. This move is in line with its broader expansion strategy, which has already seen the bank establish a presence in regions such as Asia (particularly Malaysia), Ethiopia, and Kenya.
The issuance of the banking license followed the signing of the Financial Institutions (Amendment) Act 2023 by President Museveni in January 2024, which legalized Islamic banking in Uganda.
Salaam Bank Ltd was also recently named the Best New Islamic Bank of 2023 at the prestigious Islamic Finance News (IFN) Global Awards 2024. This global accolade acknowledges the bank’s innovative, customer-centric Sharia-compliant solutions and its significant impact on the Islamic finance sector in Uganda.
Public Opinions, a respected organization dedicated to promoting responsible investment, presented the award to Salaam Bank. The recognition is part of a broader initiative to foster responsible investment and sustainable finance in Uganda, in collaboration with the Office of the Minister of State for Investment and Privatization, Ministry of Finance, Planning, and Economic Development.
As part of its achievements, Salaam Bank will be featured in the Uganda Development Champions Journal for Certified Responsible Investments, a publication that highlights organizations committed to responsible and sustainable finance.
