THE MICROFINANCE SUPPORT CENTRE TO PIONEER ISLAMIC MICROFINANCE IN UGANDA
July 21, 2016
The Microfinance Support Centre (MSC) on Thursday 21st July 2016 signed a contract with IRADA Microfinance Company for provision of services in developing Islamic microfinance frame work. This will entail developing Islamic Microfinance products, contracts and guiding on the establishing a Sharia Advisory Board. The signing was witnessed by msc Board of Directors and officials from the Ministry of Finance Planning and Economic Development.
During the signing of the contract, the Executive Director MSC Mr. John Peter Mujuni said Islamic Microfinance will help address the issue of financial inclusion. He also said that MSC is aspiring to become the hub for Islamic Microfinance in Uganda and beyond.
IRADA Microfinance Company, a subsidiary of Bank Khartoum Sudan, will train MSC Staff and client institutions (SACCOs, Microfinance Institutions and SMEs) in Islamic models of finance, set up Management Information Systems and develop products and manuals.
The company has gone through a number of processes that culminated into the signing of the contract with IRADA Microfinance yesterday. These include establishment of a project implementation unit within the company, study tours to Bangladesh and Sudan to Islamic microfinance projects and training of Staff in Islamic Microfinance. MSC has already conducted a feasibility study and identified potential clients to benefit under Islamic Microfinance.
The Executive Director said MSC was identified by the government to lead the introduction of Islamic Microfinance in the country. This is part of the Rural Income and Employment Enhancement Project (RIEEP) implemented by MSC on behalf of the Government of Uganda financed by the Islamic Development Bank and will take effect in the financial year 2016/17.