1. Could you briefly introduce yourself and share your journey in Islamic finance, research, and academia?
I’m Ssonko Muhammedi, an academic, researcher, and practitioner in Islamic finance from Uganda. The foundation of my academic career has been financial systems, technology, business, and finance. In 2013 and 2016, I graduated from Islamic University in Uganda with a bachelor’s degree in business computing and Amity University in India with a master’s degree in financial management, respectively. Fortunately, my bachelor’s degree had some subjects that introduced me to Islamic finance, such as principles of Islamic economics. During the COVID-19 period, I had extra time for reading and researching Islamic finance literature, and then I started developing thoughts of pursuing a PhD. In 2021, my colleague Dr. Hamzah Namungo, who had already started, sent me a link from UniSHAMS University to apply. I remember it was around July. After almost three months, I was offered admission and started the preparations to certify my documents and VISA application. In 2023, I officially started a PhD in Islamic banking and finance at UniSHAMS University Malaysia, which I completed this year.
My journey into Islamic finance has involved both scholarly investigation and hands-on involvement in the growth of the industry in Uganda, as well as participating in international conferences, trainings and workshops organised by several institutions, including the Islamic Financial Services Board (IFSB), International Institute of Islamic Thought (IIIT) and Alhuda Centre of Islamic Banking and Economics (CIBE). My PhD study examined the factors that influence Takaful adoption intentions in Uganda, paying special attention to the moderating influence of religiosity. The scant literature and practical knowledge of takaful in Uganda and the larger East African region served as the impetus for this study. Although my research contributes to the broader Islamic finance ecosystem, my PhD study has particularly positioned me as one of the pioneer authors and researchers on takaful in Uganda and the wider East African region.
In addition to research and teaching, I have worked on projects about education, financial inclusion, Zakat, Waqf, Islamic SACCOs, and capacity building with the House of Zakat and Waqf Uganda (HoZWU) and the UMSC SACCO initiative through the office of the National Chairperson, Uganda Muslim Women Council. My overarching goal is to support the growth of an Islamic financial ecosystem that is relevant to Uganda and Africa, academically solid, professionally capable, and socially effective.
2. What inspired you to specialize in Islamic banking and finance?
I became interested in Islamic banking and finance because I wanted to learn how financial systems could strike a balance between economic growth, social responsibility, and ethics. The core principles of Islamic finance, especially the ban on interest (riba), the avoidance of uncertainty (gharar) and gambling (maysir), the need for asset-backing, the ethos of risk sharing, the requirement for ethical investment, and the general emphasis on social justice and equitable wealth distribution, drew me in more and more after I had previously studied business and finance. Further, during my 2019 Certificate of Proficiency in Insurance course at the Insurance Training College, I remember a turning point. One of my classmates questioned how Takaful companies make money without investing in Shariah-compliant ventures during a lecture when the facilitator was attempting to connect traditional insurance to Takaful. The session wasn’t primarily about Takaful; the facilitator didn’t answer, and the other students who attempted to ask seemed to be unfamiliar. Unfortunately, I lacked the courage to reply. Although I knew the fundamentals at the time, I was unable to openly discuss Islamic financing products. I kept thinking about that question and concluded that it should be my responsibility to inform and educate the public about Islamic financing products.
The other reason that transformed my interest into a commitment was a moment in 2021. While watching an interview on one of our local television channels with Dr. Sulaiman Lujja, an expert in Islamic finance in Uganda, the host asked what was delaying the sector’s adoption since its legislation in 2016. One of the answers was: a critical shortage of skilled human resources. That moment struck me deeply. It became clear that Uganda and Africa do not lack potential or demand for Islamic finance. I saw that gap not as a barrier, but as my calling.
For me, specializing in Islamic finance was therefore never merely an intellectual pursuit. It was and remains an opportunity to contribute to an emerging field, to fill the human resource void, and to help address the practical financial and socioeconomic challenges facing Uganda and Africa. It is my way of ensuring that the next generation does not have to look far for expertise, and that Islamic finance in this region becomes not just a possibility, but a reality built by our own hands and hearts.
3. In your view, what is the current potential of Islamic finance in Uganda and Africa?
In my view, the potential of Islamic finance in Uganda and Africa is both significant and largely untapped. It offers more than just an alternative financial model; it represents a strategic mechanism for addressing critical developmental challenges across the continent.
Its potential lies in its ability to provide a holistic, ethical, and inclusive financial system that integrates commercial finance with social instruments such as Zakat and Waqf. In Uganda specifically, this potential is further amplified by a growing Muslim population of over 13%, the supportive regulatory environment, and the country’s strategic membership in the Islamic Development Bank (IsDB). A practical example of this advantage is the IsDB Executive Board’s approval of sukuk investment, in June, of EUR 650.75 million for Uganda’s Standard Gauge Railway (SGR) project. Uganda therefore has a potential not simply to participate in Islamic finance but to position itself as a regional hub for Islamic finance.
At the African level, Islamic finance can help address the continent’s huge financing gap. For example, sukuk can be used to finance roads, energy, and other infrastructure, while Islamic banking and microfinance can provide shariah-compliant funding to SMEs and underserved communities.
4. How can Islamic microfinance help improve financial inclusion and reduce poverty in underserved communities?
Islamic microfinance provides a unique approach to financial inclusion and poverty alleviation for communities excluded from traditional finance due to religious beliefs, lack of collateral, or rigid interest-based systems. It stands out through its emphasis on ethical finance, risk-sharing, and social empowerment.
First, Islamic microfinance addresses the faith-based exclusion that keeps many Muslims outside the formal financial system. By offering Shariah-compliant alternatives such as Murabaha (cost-plus financing), Mudarabah (profit-sharing), and Musharakah (joint venture), Islamic microfinance provides a dignified, faith-consistent entry point into formal finance. Second, Islamic microfinance is inherently asset-backed and productive in orientation. Unlike conventional microcredit, which often disburses cash that may be consumed rather than invested, Islamic microfinance typically finances specific assets: livestock, seeds, equipment, inventory, or machinery. This model not only reduces poverty but builds sustainable livelihoods.
Second, Islamic microfinance uniquely incorporates social finance tools like Zakat, Waqf, and Sadaqah, which cannot be utilized in conventional microfinance. These instruments can provide direct assistance to the extremely poor, fund community infrastructure, and support microfinance institutions by covering operational costs and reducing financing risks. This approach establishes a comprehensive support system, transitioning from charity for the needy to microfinance for active poor individuals, ultimately leading to commercial Islamic finance for expanding businesses.
Third, Islamic microfinance significantly empowers women in Uganda by offering financial products that align with their values, addressing the exclusion they face in formal banking. With women often managing household finances, this approach facilitates small business ventures, educational investments for their children, and economic resilience. Initiatives such as the Uganda Muslim Supreme Council’s interest-free financing under the National Women Council SACCO project highlight this growing demand for support among women entrepreneurs.
In my own work with the House of Zakat and Waqf Uganda and the Uganda Muslim Supreme Council SACCO initiative through the office of the National Chairperson of the Uganda Muslim Women Council, I have experienced how these principles translate into practice. When communities understand that finance can be ethical, that risk can be shared, and that the poor are not merely borrowers but partners in development, transformation becomes possible.
5. Based on your experience, what are the key challenges facing the development of Islamic microfinance in Uganda?
Based on my research and hands-on engagement with Islamic microfinance initiatives in Uganda, I have identified several interconnected challenges that are constraining the growth and effectiveness of this sector. These challenges are not insurmountable, but they require deliberate, coordinated action from policymakers, practitioners, regulators, and academics.
First, there is a significant shortage of skilled human resources in Uganda, particularly in Islamic finance. The absence of qualified professionals, such as Shariah scholars, advisors, practitioners, auditors, and independent regulators, hinders adherence to Shariah principles and limits product innovation. This gap in expertise poses a risk to institutions and prevents the sector from achieving its full potential.
Second, there is a widespread lack of awareness and persistent misconceptions. Many Ugandans, both Muslims and non-Muslims, hold myths and misconceptions about Islamic finance. Some believe it is exclusively for Muslims, while others assume it is synonymous with interest-free lending or charitable giving. These misconceptions limit the potential client base and undermine the sector’s ability to achieve financial inclusion at scale. The Microfinance Support Centre and the office of the National Chairperson of the Uganda Women Council – UMSC have made commendable efforts to sensitize communities, but these efforts have been constrained by limited capacity-building funds.
Third, there is limited access to affordable capital for Islamic microfinance institutions. Unlike conventional microfinance institutions, Islamic MFIs cannot simply borrow from commercial banks and on-lend with interest. They require Shariah-compliant sources of funding, which are scarce in Uganda. This limits their ability to expand outreach and serve more clients.
Fourth, there is insufficient coordination among stakeholders. The Islamic microfinance sector in Uganda involves multiple actors: the Central Bank, the Microfinance Support Centre, Islamic banks, SACCOs, and other Muslim institutions. Greater coordination and information sharing would reduce duplication, enhance efficiency, and create a more coherent ecosystem.
Fifth, and related to the above, there is the challenge of achieving long-term sustainability and continuous saving and lending capacity. Many have demonstrated success in mobilizing savings and providing short-term loans in the first year of operation but face difficulties in maintaining long-term savings and continuous lending capacity due to the high default rate. This highlights the need for more sophisticated product design and institutional structures in Uganda.
6. You have worked closely with Zakat and Waqf initiatives. How can Islamic social finance support Islamic microfinance and community development?
My experience with Zakat and Waqf initiatives has shown that Islamic social finance could be essential for sustainable and impactful microfinance if zakat and waqf are given due attention. The integration of these areas could provide a comprehensive approach to combating poverty, empowering communities, and fulfilling the Shariah objectives.
Firstly, Zakat and Waqf can provide a stable, Shariah-compliant source of capital for Islamic microfinance institutions. One of the most persistent challenges facing Islamic MFIs in Uganda is the scarcity of affordable, interest-free funding. Unlike conventional MFIs, which can borrow from commercial banks and on-lend with interest, Islamic MFIs must seek Shariah-compliant sources of capital.
Secondly, Zakat serves a distinct but complementary function by providing direct support to the poorest and most vulnerable. In Uganda, the fragmentation of Zakat collection has historically limited its impact. This requires an institutional response grounded in Shariah, governance, and professionalism. The HoZWU was established precisely to address such gaps by providing structured Zakat governance, standardized procedures, beneficiary verification, and accountability mechanisms. Through HoZWU, Zakat is being transformed from short-term relief into a tool for sustainable livelihoods. The institution has conducted training for Muslim leaders, provided economic empowerment, and offered educational scholarships across Uganda. These interventions, while seemingly distinct from microfinance, are essential because they address the foundational deprivations poverty, illiteracy, and lack of skills that prevent the poor from participating in productive economic activity, as well as promoting savings, which finally encourage members to join microfinance institutions.
Thirdly, Islamic social finance strengthens community development beyond individual beneficiaries. Waqf, in particular, has historically been used to fund public goods mosques, schools, hospitals, water points that benefit entire communities. Today, Waqf can be revitalised to fund community infrastructure, skills training centres, and agricultural cooperatives. When combined with microfinance, Waqf-funded infrastructure can reduce the operational costs of MFIs and create enabling environments for micro-enterprises to thrive. For Uganda’s case, the HoZWU already has waqf assets in the form of rental houses and agroforestry projects. The next step is to strategically utilise the income generated from these assets to create sustainable social and economic impact.
Fourthly, Islamic social finance promotes financial literacy and inclusion at the grassroots level. The work of HoZWU in sensitising communities about Zakat and its proper administration has a spillover effect: it educates Muslims about Islamic financial principles more broadly, reducing misconceptions and building trust in Shariah-compliant institutions. This is critical because, as I have noted elsewhere, widespread misconceptions about Islamic finance that it is exclusively for Muslims or synonymous with charity remain a significant barrier to adoption. When communities understand that Zakat and Waqf are not merely acts of charity but tools for economic empowerment, they become more receptive to Islamic microfinance products.
However, realising this potential requires intentional integration and strong governance. Zakat and Waqf institutions must collaborate closely with Islamic MFIs, and ensure that social finance complements rather than duplicates microfinance efforts. Robust governance frameworks are essential to ensure transparency, accountability, and Shariah compliance. The HoZWU model, with its emphasis on centralised collection, standardised procedures, and institutional protection for all actors, offers a model that can be adapted and strengthened.
7. What role can Islamic SACCOs play in promoting financial empowerment, particularly among women and rural communities?
Islamic SACCOs occupy a unique and strategic position in Uganda’s financial landscape, serving as community-owned vehicles that combine Shariah compliance with grassroots accessibility. Their role in promoting financial empowerment especially among women and rural communities is multi-dimensional and transformative. Their role includes not limited to the following:
i. Removing Structural Barriers: Islamic SACCOs address the exclusion of women from conventional credit by eliminating interest and collateral requirements. Through instruments like Qard Hasan (interest free loans) and risk-sharing arrangements, they treat women as partners rather than high-risk debtors.
ii. Providing Faith-Consistent Financial Services: For Muslim women, conventional savings and credit institutions are often inaccessible due to religious conviction. Islamic SACCOs offer a safe, Shariah-compliant space for savings and investment, restoring dignity and enabling women to move from survival to investment while preserving their faith.
iii. Enabling Asset Accumulation: Islamic SACCOs facilitate productive investment and asset acquisition such as; livestock, and business equipment allowing women to repay from enterprise proceeds rather than fixed interest obligations. These builds lasting economic resilience.
iv. Reaching Rural Communities: Rooted in mosque communities and village networks, Islamic SACCOs reach women where conventional banks cannot. Initiatives like the Islamic Development Bank’s financing through the Microfinance Support Centre have enabled SACCOs in Sheema, Adjumani, and Nwoya districts to access agricultural machinery, boosting productivity and incomes.
v. Building Financial Literacy: Islamic SACCOs serve as platforms for training in value addition, savings culture, and entrepreneurship, transforming from credit providers into genuine engines of empowerment. A strong practical example is the massive capacity building and mobilisation undertaken through the office of the national chairperson, Uganda Muslim Women Council, alongside the establishment of the shariah-compliant women’s SACCOs. The initiative has included nationwide sensitisation, mindset change programmes and training of trainers (ToTs), to strengthen Muslim women’s economic empowerment.
In conclusion, Islamic SACCOs should not only teach people how to access money; they should teach them how to save it, invest it, add value to what they produce, and build sustainable enterprises.
8. How important are education and capacity building for the sustainable growth of Islamic finance and Islamic microfinance?
Education and capacity building are not merely important they are the foundational pillars upon which the entire system of Islamic finance and Islamic microfinance must rest. Without them, regulatory reform, institutional development, and product innovation will remain hollow. With them, Uganda and Africa can build an ecosystem that is academically sound, professionally competent, socially impactful, and sustainable for generations.
First, human capital is the binding constraint on the sector’s growth. As I have consistently argued, the technical gap in Uganda’s Islamic finance sector is not a peripheral issue; it is the primary obstacle to massive adoption. This is confirmed in several literature that a severe lack of human resources is one of the main factors delaying the sector’s massive acceptance. The lesson is clear: we cannot have a future in Islamic finance if we do not have the experts to build it.
Second, capacity building ensures Shariah compliance and institutional integrity. Islamic finance is not merely conventional finance with Arabic terminology. It operates on distinct principles the prohibition of riba, avoidance of gharar and maysir, asset-backing, and risk-sharing that require specialised knowledge. Without properly trained Shariah scholars, auditors, regulators, and practitioners, institutions risk deviating from these principles, eroding public trust, and undermining the very foundation of the sector. Education is therefore not a luxury; it is a safeguard.
Third, education drives awareness and addresses misconceptions. Many Ugandans both Muslims and non-Muslims hold misconceptions about Islamic finance. Some believe it is exclusively for Muslims; others assume it is synonymous with charity. These misconceptions limit the client base and slow adoption. Public awareness campaigns, university curricula, professional certifications, and community sensitisation are essential to dismiss these myths and present Islamic finance as what it truly is: an ethical, inclusive, and viable alternative for all.
Fourth, investing in education yields multiplied returns. Research and experience demonstrate that education not only benefits individuals; it strengthens institutions, improves governance, enhances product innovation, and builds public confidence. The Islamic Development Bank’s training programme for the House of Zakat and Waqf Uganda in 2023, covering Fiqh of Zakat, governance, and fintech in Zakat management, is a powerful example of how targeted capacity building can professionalise institutions and improve service delivery.
Finally, education and capacity building are the bridge between potential and reality. Uganda and Africa have immense potential in Islamic finance. But potential alone is not destiny. To transform potential into shared prosperity, we must invest in people their knowledge, their skills, their ethical grounding, and their professional competence. This is the work to which I have dedicated my career: contributing to the development of a pool of capable, morally upright professionals who can advance Islamic finance in Uganda and throughout Africa.
9. What opportunities do you see for integrating technology and innovation into Islamic finance and microfinance?
Technology and innovation present transformative opportunities for Islamic finance and microfinance in Uganda and Africa. The convergence of Islamic finance principles with modern technological tools can dramatically expand access, reduce costs, enhance transparency, and accelerate financial inclusion.
First, mobile technology and digital platforms can extend Islamic finance services to remote and underserved communities. For example, Salam bank Uganda has achieved remarkable mobile money penetration with introduction of agent banking and digital online services. This infrastructure can be leveraged to deliver Shariah-compliant savings, and credit products to rural populations who cannot access physical bank branches. Digital onboarding and, mobile wallets-based services can bring Islamic bank and microfinance to the last mile.
Second, fintech enables innovative Shariah-compliant product design. Platforms can facilitate peer-to-peer financing based on Mudarabah and Musharakah, crowdfunding for Waqf and Zakat, and automated calculation and distribution of Zakat. Digital platforms can provide reduced cost of zakat ad sadaq collection and distribution. Smart contracts in sukuk issuance can automate profit-sharing arrangements, ensure Shariah compliance while reduce operational costs.
Third, technology strengthens governance and accountability. Digital systems for Zakat and Waqf management can improve collection efficiency, beneficiary verification, and impact reporting. The House of Zakat and Waqf Uganda on Fintech in Zakat management exemplifies this potential. When communities can see how their Zakat is collected and distributed, trust and participation increase.
Fourth, data analytics and artificial intelligence can enhance credit assessment and risk management. Islamic MFIs can use alternative data mobile money history, utility payments, community references to assess creditworthiness without requiring traditional collateral. This is particularly important for women and rural borrowers who lack formal credit histories.
However, realizing these opportunities requires investment in digital infrastructure, regulatory frameworks that accommodate fintech innovation, capacity building for practitioners, and rigorous attention to Shariah compliance in technological solutions. Technology is a tool; it must serve the ethical and social objectives of Islamic finance, not replace them. Uganda and Africa can leapfrog traditional banking infrastructure by embracing digital Islamic finance solutions that are ethical, inclusive, and impactful.
10. What message would you like to share with young professionals and students who want to build a career in Islamic finance and Islamic microfinance?
My message to young professionals and students is one of encouragement, responsibility, and urgency. You are entering a field that is not only intellectually rewarding but also deeply meaningful, a field where your work can directly transform your faith (Imaan), transform lives, empower communities, and contribute to a more just and equitable economy.
First, see yourselves as pioneers. Islamic finance in Uganda and Africa is still in its infancy. This means that the opportunities for impact are enormous. You are not entering a saturated market; you are building an ecosystem. The technical gap that currently constrains the sector is precisely what creates space for you to rise, lead, and make your mark.
Second, invest in knowledge relentlessly. Islamic finance requires a unique combination of skills: financial expertise, Shariah knowledge, ethical grounding, and practical competence. Pursue academic qualifications, professional certifications, and continuous learning. Read widely, not just about Islamic finance but about economics, development, technology, and social justice. The best practitioners are those who never stop learning.
Third, seek mentorship and build networks. Surround yourselves with scholars, practitioners, and mentors who can guide your journey. Join professional associations, attend conferences, and participate in online communities. The Islamic finance world is global, and the connections you build will shape your career and expand your horizons.
Fourth, be people of integrity and excellence. Islamic finance is built on trust – Amanah. Your character is your greatest asset. Uphold the highest ethical standards in your personal and professional life. Let your work reflect the principles you profess. Excellence is not optional; it is an obligation.
Fifth, remember why you are doing this. You are not merely pursuing a career; you are contributing to a mission. Every product you design, every client you serve, every institution you build has the potential to uplift someone from poverty, empower a woman to start a business, or help a family access dignified financial services. Never lose sight of that purpose.
Finally, be patient but persistent. Building an ecosystem takes time. You will face challenges, setbacks, and moments of doubt. But remember: the work you do today will shape the future of Islamic finance in Uganda and Africa for generations to come. As I have often said, we cannot have a future in Islamic finance if we do not have the experts. You are those experts. The field needs you. Uganda needs you. Africa needs you. Let your ambition be matched by your preparation, your passion by your professionalism, and your dreams by your discipline. The opportunity before you is immense. Be part of something far greater than yourselves, a legacy of ethical finance, inclusive growth, and enduring impact.