DOCSLIB.ORG

Chapter 15 the Creation of Uganda Microfinance Limited

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Chapter 15 the Creation of Uganda Microfinance Limited Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Transforming Microfinance Institutions Microfinance Transforming Providing FullFinancialServices tothePoor Joanna Ledgerwood Victoria White Victoria Transforming Microfinance Institutions Transforming Microfinance Institutions Providing Full Financial Services to the Poor Joanna Ledgerwood and Victoria White with contributions from Monica Brand Gabriela Braun Deborah Burand Alfred Hannig Kelly Hattel and Marguerite Robinson THE WORLD BANK ©2006 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: http://www.worldbank.org E-mail: [email protected] All rights reserved 1 2 3 4 09 08 07 06 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent, or the views of the Swedish International Development Cooperation Agency, SIDA. Neither the World Bank nor SIDA guarantee the accuracy of the data included in this work. The bound- aries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank or SIDA concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete infor- mation to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: http://www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. Cover design by Naylor Design, Washington, D.C. Photo courtesy of Richard Lord, rlordphoto.com. ISBN-10: 0-8213-6615-7 ISBN-13: 978-0-8213-6615-8 eISBN: 0-8213-6616-5 eISBN-13: 978-0-8213-6616-5 DOI: 10.1596/978-0-8213-6615-8 Library of Congress Cataloging-in-Publication Data Ledgerwood, Joanna. Transforming microfinance institutions: providing full financial services to the poor / Joanna Ledgerwood, Victoria White. p. cm. Includes bibliographic references and index. ISBMN-13: 978-0-8213-6615-8 ISBN-10: 0-8213-6615-7 1. Microfinance—Developing countries. 2. Economic assistance, Domestic—Developing countries. 3. Poverty—Developing countries. I. White, Victoria. II. Title. HG178.33.D44L43 2006 332.109172'4—dc22 2006045423 Contents Foreword xv Acknowledgments xvii About the Authors xxi Introduction xxv Abbreviations xlv PART I Savings and Regulation: Principles and Policies1 Chapter 1 Mobilizing Savings from the Public: 10 Basic Principles3 by Marguerite S. Robinson Mobilizing and Intermediating Savings in Developing Countries 3 Ten Basic Principles for MFIs that Collect Savings from the Public4 Who Benefits? 17 Chapter 2 Regulation and Supervision: The Policy Framework 21 by Gabriela Braun and Alfred Hannig Key Policy Issues 22 The Strategic Approach to Regulation 26 The Regulatory Framework 37 Supervision 46 Remaining Challenges 52 Annex 2A: Note on Supervising Savings and Credit Cooperatives 54 Annex 2B: Risk Framework (Example from Uganda) 55 v vi | Contents PART II Transforming the Institution: Strategic Decisions 65 Chapter 3 Planning for Transformation 67 Fundamental Changes Resulting from Transformation 67 Leading the Transformation 71 Planning the Transformation 77 Managing the Transformation 80 Funding the Transformation 80 Annex 3A: Sample Outline for a Transformation Plan 83 Annex 3B: Sample Terms of Reference for Development of a Transformation Plan 88 Annex 3C: Sample Terms of Reference for a Transformation Manager 90 Annex 3D: Sample Transformation Budget 92 Chapter 4 Marketing and Competitive Positioning 95 by Monica Brand Marketing 96 Marketing Intelligence 97 The Total Product 104 Delivery Channels 111 Branding 115 Communications Strategy 120 Implementation: Consolidating the Pieces 123 Annex 4A: Sample Outline of a Marketing Plan 125 Annex 4B: Sample Terms of Reference for Development of a Marketing Plan 126 Annex 4C: Checklist for Marketing and Competitive Positioning 128 Chapter 5 Strategic and Business Planning 133 Developing a Strategy 134 Institutional Transformation and the Role of the NGO 137 Development of the Business Plan 142 Financial Modeling Tools and Methods 144 Financial Modeling 145 Tax Strategy Considerations 152 Annex 5A: Terms of Reference: Development of the Business Plan 157 Annex 5B: Checklist for Strategic and Business Planning 159 Chapter 6 The Funding Structure 163 Funding Sources 164 Funding Considerations 165 Funding Structure Options 171 Contents | vii Optimal Leverage? 186 Annex 6A: Sample Terms of Reference: Funding Structure 190 Annex 6B: Additional Information on Microfinance Bond Offerings 192 Annex 6C: Checklist for the Funding Structure 194 Chapter 7 Ownership and Governance 199 Choosing the Type of Investor 200 Seeking Potential Investors 211 Effective Governance 226 Annex 7A: Sample Terms of Reference: Advisory Services on Ownership and Governance 235 Annex 7B: Sample Term Sheet Outline 236 Annex 7C: Discounted Cash Flow Valuation 237 Annex 7D: Sample Board Agenda for Transformed MFIs 241 Annex 7E: Checklist for Ownership and Governance 242 Chapter 8 Legal Transformation 245 by Deborah Burand Managing the Legal Aspects of Transformation 245 Surveying the Legal and Regulatory Landscape 248 Managing Constituent Documents and Preexisting Obligations 251 Negotiating Investor Documents 254 Annex 8A: Sample Checklist of Legal and Regulatory Issues 261 Annex 8B: Sample Terms of Reference: Hiring Local Counsel to Support Legal Transformation 265 Annex 8C: Sample Conflict of Interest Policy 267 PART III Transforming the Institution: Operational Implications 271 Chapter 9 Human Resources Management 273 Adapting the Organizational Culture 274 Adapting the Organizational Structure 278 Ensuring the Right Staff 285 Annex 9A: Sample Terms of Reference: Human Resources Management 294 Annex 9B: Examples of Job Responsibilities for Senior Staff 296 Annex 9C: Sample Organizational Charts 298 Annex 9D: Checklist for Managing Human Resources 303 viii | Contents Chapter 10 Financial Management 305 Financial Management Functions 306 Financial Planning and Budgeting 308 Financial Control 310 Treasury Management 317 Investor Relations 326 Annex 10A: Sample Terms of Reference: Activity-Based Costing 327 Annex 10B: Sample Terms of Reference: Treasury Management 328 Annex 10C: Checklist for Financial Management 330 Chapter 11 Management Information Systems 333 Planning for an MIS Upgrade 334 MIS Upgrade Process 336 Software Requirements 340 Infrastructure 355 MIS Security 357 Human Resources Implications 357 Annex 11A: Sample Requirements Document 361 Annex 11B: Sample Terms of Reference: MIS Assessment and Software Selection 364 Annex 11C: Terms of Reference: Advisory Services on Implementation of MIS Upgrade 367 Annex 11D: Management Information Systems Checklist 369 Chapter 12 Internal Control and Audits 375 Components of Effective Internal Controls 376 Risk of Poor Controls: Overview of Fraud in MFIs 380 Preventive Controls: Policies and Procedures 381 Detective Control: The Internal Audit 387 Detective Control: The External Audit 392 Supervision: Evaluating Internal Controls 394 Annex 12A: Sample Terms of Reference: Internal Controls Assessment 396 Annex 12B: Internal Audit Manual: Sample Outline of Contents 398 Annex 12C: Sample Audit Committee Charter 399 Annex 12D: Proposed Format for Quarterly Audit and Inspection Activity Report to the Audit Committee of the Board of Directors 402 Annex 12E: Checklist for Internal Control and Audits 403 Contents | ix Chapter 13 Customer Service and Operations 409 Transformation of Operations 410 Customer Service Framework 412 Branch Structure and Service 418 Managing Cash 428 Deposit Account Management 430 Documentation Management 432 Annex 13A: Sample Terms of Reference: Improving Branch-Level Customer Service 434 Annex 13B: Checklist for Customer Service and Operations 435 PART IV Case Studies 439 Chapter 14 Creating a Separate Tier: The Micro Finance Deposit-Taking Institutions Act, 2003 441 by Gabriela Braun and Alfred Hannig The Financial Sector 442 Regulation of Microfinance Deposit-Taking Institutions 443 The Micro Finance Deposit-Taking Institutions Act 447 Licensing Begins 451 Key Success Factors 453 Remaining Challenges 455 Chapter 15 The Creation of Uganda Microfinance Limited 459 Background 460 Planning and Managing the Transformation 463 Operational Transformation: Upgrading and Systemizing 465 Structural Transformation: Creating UML and Attracting Investors 470 Financial Transformation: Launching the MDI 473 Appendix 1 Sequencing the Introduction of Public Savings in Regulated MFIs 481 by Marguerite S. Robinson Fifteen Steps: From Studying Savings Demand to Investing
Load more

Recommended publications
  • Tumusiime Claire.Pdf
    EVALUATION OF CREDIT POLICY MANAGEMENT AND PERFORMANCE OF MICRO-FINANCE INSTITUTIONS IN UGANDA A CASE STUDY OF PRIDE MICROFINANCE BY Tumusiime Clare BBA/6067/ 41/DU SUPERVISED BY: Mr. Naleela Kizito RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A BACHELOR DEGREE IN BUSINESS ADMINISTRATION AND MANAGEMENT OF KAMP AlA INTERNATIONAL UNIVERSITY • August, 2006 DECLARATION I Tumusiime Clare hereby declare that the following research report under the title "Evaluation of Credit Policy Management and Performance of Micro­ finance Institutions" has never been submitted to any college or university for any award. It is my original work. Signed: ~ ------------------ Tumusiime Clare BBA/ 6067/ 41/DU Date~. ~r.!.~.h .~_gl.U.J] .... ~ .Qh/' APPROVAL This research report on "evaluation of credit policy and performance of Micro- finance Institutions" in Uganda has been carried out by Tumusiime Clare under my supervision and is now ready for submission to Kampala International University. Signed:---~ ------------------------·· Mr. Naleela Kizito S~rvisor Date: ..... ~3 .. l.~ .. r.~.fe................ 11 DEDICATION I dedicate this project to my mum and Dad, Father Bonny, my sisters and brothers. May the Lord God reward them more abundantly. l1l ACKNOWLEDGEMENT With deep pleasure I wish to extend my sincere appreciation to Almighty God for giving me life and blessing my studies. My esteem love goes to my brothers; Francis, Justus, Julius, and my sisters; Rita and Sharon who had to endure a long period of struggles to support me as their sister. My sincere thanks also go to the entire staff of Kampala International University for their love and services rendered.
    [Show full text]
  • Absa Bank 22
    Uganda Bankers’ Association Annual Report 2020 Promoting Partnerships Transforming Banking Uganda Bankers’ Association Annual Report 3 Content About Uganda 6 Bankers' Association UBA Structure and 9 Governance UBA Member 10 Bank CEOs 15 UBA Executive Committee 2020 16 UBA Secretariat Management Team UBA Committee 17 Representatives 2020 Content Message from the 20 UBA Chairman Message from the 40 Executive Director UBA Activities 42 2020 CSR & UBA Member 62 Bank Activities Financial Statements for the Year Ended 31 70 December 2020 5 About Uganda Bankers' Association Commercial 25 banks Development 02 Banks Tier 2 & 3 Financial 09 Institutions ganda Bankers’ Association (UBA) is a membership based organization for financial institutions licensed and supervised by Bank of Uganda. Established in 1981, UBA is currently made up of 25 commercial banks, 2 development Banks (Uganda Development Bank and East African Development Bank) and 9 Tier 2 & Tier 3 Financial Institutions (FINCA, Pride Microfinance Limited, Post Bank, Top Finance , Yako Microfinance, UGAFODE, UEFC, Brac Uganda Bank and Mercantile Credit Bank). 6 • Promote and represent the interests of the The UBA’s member banks, • Develop and maintain a code of ethics and best banking practices among its mandate membership. • Encourage & undertake high quality policy is to; development initiatives and research on the banking sector, including trends, key issues & drivers impacting on or influencing the industry and national development processes therein through partnerships in banking & finance, in collaboration with other agencies (local, regional, international including academia) and research networks to generate new and original policy insights. • Develop and deliver advocacy strategies to influence relevant stakeholders and achieve policy changes at industry and national level.
    [Show full text]
  • Performance Measurement and Improvement at FINCA Uganda Aaron Cowans SIT Study Abroad
    SIT Graduate Institute/SIT Study Abroad SIT Digital Collections Independent Study Project (ISP) Collection SIT Study Abroad Fall 2011 Performance Measurement and Improvement at FINCA Uganda Aaron Cowans SIT Study Abroad Follow this and additional works at: https://digitalcollections.sit.edu/isp_collection Part of the Business Administration, Management, and Operations Commons, Finance and Financial Management Commons, and the International Business Commons Recommended Citation Cowans, Aaron, "Performance Measurement and Improvement at FINCA Uganda" (2011). Independent Study Project (ISP) Collection. 1226. https://digitalcollections.sit.edu/isp_collection/1226 This Unpublished Paper is brought to you for free and open access by the SIT Study Abroad at SIT Digital Collections. It has been accepted for inclusion in Independent Study Project (ISP) Collection by an authorized administrator of SIT Digital Collections. For more information, please contact [email protected]. Performance Measurement and Improvement at FINCA Uganda Aaron Cowans SIT Uganda: Microfinance and Entrepreneurship Academic Advisor: Godfrey Byekwaso Academic Director: Martha Wandera Fall 2011 Dedication This work is dedicated to my family in America and the amazing people I have met here in Uganda, who have all helped me throughout my journey. 2 Acknowledgements While so many people helped me along my way, I want to acknowledge the following people in particular who were instrumental to my experience here. Martha Wandera, Helen Lwemamu and the rest of the SIT staff for putting together such a fantastic program. I have learned so much here and made memories which will last a lifetime. This was all possible because of your constant hard work and dedication. All of the staff at FINCA Uganda and FINCA International who so graciously hosted me as an intern and supported me through the duration of my internship.
    [Show full text]
  • New Company Profile
    PadrePio INSURANCE BROKERS Risk Management Solutions COMPANY PROFILE +256 393 2294682 www.padrepioinsurance.com @ [email protected] Plot 12A, Tufnell Drive, P.O.Box 7446, Kampala PadrePio INSURANCE BROKERS ABOUT US Padre Pio Insurance Brokers Ltd is an indigenous firm incorporated in 2005 owned by Ugandans. We are licensed by both the Insurance Regulatory Authority of Uganda (IRA) and Uganda Retirement Benefit Regulatory Authority (URBRA) to carry out Insurance Brokerage services and Retirement Benefit schemes Third party Administration Services. The company understands the Insurance markets in which our clients operate and offer a service built on personalized and specialized solutions. We are committed to building long- term relationships through the development of creative solutions to day to day challenges. We further pride in partnering with our clients on the road to business excellence through the provision of tailor made insurance services OUR PURPOSE To be recognized as the leading insurance brokerage firm and pension administrator, dedicated to risk management solution of individuals and organizations through the provision of excellent products, efficient services for better customer satisfaction. OUR VISION To be the symbol of excellence in the provision of insurance brokerage and pension administration services. OUR MISSION To provide innovative customer oriented risk management solutions with the highest degree of professionalism. CORE VALUES Customer centrism Innovation Integrity Professionalis Reliability MANAGEMENT Padre Pio has experienced staff who has worked in both local and international insurance organizations. The management has technical expertise in Insurance underwriting, claims management and customer care. We have a number of control measures in place that ensure that clients’ assets are properly secured as we vet all insurers on an annual basis and take into consideration professionalism, financial status, management ethics, claims handling and reinsurance arrangement.
    [Show full text]
  • Financial Report 2018
    Summarised Audited Financial Statements for the year ended 31 December 2018 REPORT OF THE INDEPENDENT AUDITORS ON THE SUMMARY FINANCIAL STATEMENTS TO THE MEMBERS OF FINCA UGANDA LIMITED (MDI) Opinion Summary Financial Statements communication of key audit matters. Key audit the audited financial statements based on our The summary financial statements, which comprise The summary financial statements do not contain matters are those matters that, in our professional procedures, which were conducted in accordance the summary statement of financial position all the disclosures required by International judgement, were of most significance in our audit with International Standard on Auditing (ISA) 810 as at 31 December 2018, the summary Income Financial Reporting Standards, the Microfinance of the financial statements of the current period. (Revised), Engagements to Report on Summary statement for the year then ended and other Deposit-Taking Institutions (MDI) Act, 2003 and the Financial Statements”. disclosures are derived from the audited financial Companies Act of Uganda. Directors’ Responsibility for the Summary statements of FINCA Uganda Limited (MDI) for the Financial Statements year ended 31 December 2018. Reading the summary financial statements and our The directors are responsible for the preparation of report thereon, therefore, is not a substitute for the summary financial statements in accordance In our opinion, the accompanying summary reading the audited financial statements and our with the Microfinance Deposit-Taking Institutions financial statements are consistent, in all material report thereon. (MDI) Act, 2003 and Financial Institutions (External KPMG respects, with the audited financial statements in Auditors) Regulation, 2010. Certified Public Accountants accordance with the Microfinance Deposit-Taking The Audited Financial Statements and Our 3rd Floor, Rwenzori Courts, Institutions (MDI) Act, 2003 and the Financial Report Thereon Auditors’ Responsibility Plot 2 & 4A, Nakasero Road Institutions (External Auditors) Regulation, 2010.
    [Show full text]
  • Financial Report 2020
    FINCA Uganda Financial Year 2020 a dedicated Digital lending application, which • digitization and automation of our own Managing will exclusively cater for digital on boarding, and internal processes as well as processing of loans for customers using internal • increased skills development. The Board of Director’s and external sources of information and state- of-the-art machine learning and algorithms. Our The Board of Directors have continuously Directors have Statement alternative delivery channels like Cente-Agency engaged with the management to setup business continuously engaged service to our clients, VISA ATM partnership goals, which benefit all the stakeholders with United Bank of Africa, the mobile banking including the shareholders. Our strategy this with the management services as well as internet banking, have year will be to consolidate the challenges to setup business already resulted in lower turnaround time and and achieve better efficiency parameters better customer experience. while delivering healthy growth in credit and goals, which benefit profitability. In addition, we are conscious of the James Onyutta The pace of change has never been greater. The fact that the way we do business has to change in all the stakeholders digital transition has affected all sectors and the post COVID’19 world. We plan to strategize on including the activities, and, right now, the financial sector these lines so that the adversity is converted into It gives me great pleasure to place before you the in particular. Ease of use, simple and intuitive opportunities. As the Managing Director of FINCA shareholders. highlights of the FINCA Uganda’s performance design, and the ability to connect large amounts Uganda, I am excited to be part of this journey.
    [Show full text]
  • Court Case Administration System
    Court Case Administration System https://ccas.judicature.go.ug/ccas/causelistmaker3.php?todate=05-03-20... THE REPUBLIC OF UGANDA IN THE HIGH COURT OF UGANDA(HCT) AT KAMPALA COMMERCIAL REGISTRY CAUSELIST FOR THE SITTINGS OF : 01-03-2021 to 05-03-2021 MONDAY, 01-MAR-2021 HON. DR. JUSTICE HENRY P. BEFORE:: COURT ROOM :: COURT NO. 4 ADONYO Case Time Case number Par�es Claim Si�ng Type Posi�on Category STANDARD CHARTERED BANK HCT-00-CC- PENDING 1. 09:00 Civil Suits UGANDA LIMITED VS TADEO RECOVERY OF 9,041,275,875 AND COSTS Men�on CS-0925-2020 DIRECTIONS MUKONYEZI & ANOTHER ALEWI JANYARE DONATUS VS HCT-00-CC- SHS 213,626,234, G/DAMAGES, Scheduling PENDING 2. 09:00 Civil Suits UGANDA DEVELOPMENT CS-0629-2017 A/DAMAGES, INTEREST & COSTS conference HEARING BANK LTD M/S SILVER DRAGON GROUP HCT-00-CC- Miscellaneous TECHNOLOGY & TRADING ORDERS DISMISSING CIVIL SUIT BE SET PENDING 3. 09:00 Ruling MA-1018-2020 Applica�on GROUP VS JOSE MUKASA & 3 ASIDE RULING OTHERS IBRAHIM SSEBAGALA VS DECLARATIONS, PERMANENT INJUNCTION, HCT-00-CC- PENDING 4. 09:00 Civil Suits CENTENARY RURAL PUNITIVE & GENERAL DAMAGES, MESNE Men�on CS-0980-2020 DIRECTIONS DEVELOPMENT BANK PROFITS, COSTS MUGUNDHO HERBERT VS HCT-00-CC- Origina�ng UNDER 5. 09:00 OWOR MIKE AKWOYO & 3 MORTGAGE Men�on OS-0004-2019 Summons HEARING OTHERS AGRICULTURAL BUSSINESS HCT-00-CC- UG X 342,917,532 DECLARATION, GENERAL PENDING 6. 11:00 Civil Suits INITIATIVE TRUST VS EL Men�on CS-0379-2018 DAMAGES, INTEREST AND COSTS DIRECTIONS CAFINO UGANDA LTD ENG.
    [Show full text]
  • Housing Finance in Kampala, Uganda: to Borrow Or Not to Borrow
    Housing Finance in Kampala, Uganda: To Borrow or Not to Borrow ANNIKA NILSSON Doctoral Thesis Stockholm, Sweden 2017 KTH Centre for Banking and Finance Dept. of Real Estate and Construction Management TRITA FOB-DT-2017:2 SE-100 44 Stockholm ISBN 978-91-85783-75-5 SWEDEN Akademisk avhandling som med tillstånd av Kungl Tekniska högskolan framlägges till offentlig granskning för avläggande av teknologie doktorsexamen i Fastigheter och byggande tisdagen den 28:e mars 2017 kl 13:00 i rum F3, Lindstedtsvägen 26, Kungliga Tekniska högskolan, Stockholm. © Annika Nilsson, februari 2017 Tryck: Universitetsservice US AB Abstract Housing is an important part of development processes and typically re- quires long-term finance. Without long-term financial instruments, it is difficult for households to smooth income over time by investing in housing. However, in developing countries the use of long-term loans is limited, particularly among the middle-class and lower income individuals. Most people in developing coun- tries build their houses incrementally over time without long-term loans. The limited use of long-term loans is generally seen as a symptom of market failures and policy distortions. This thesis empirically explores constraints to increase housing loans and factors that determinate the demand for different types of loans for investment in land and residential housing. The study is conducted in Kampala, the capital of Uganda. The thesis looks at supply and demand of loans. Most of the data on the supply side is collected through interviews and literature studies. The demand side is investigated through questionnaires to household where data is collected in four surveys targeting different household groups.
    [Show full text]
  • Pragmatic Policy Recommendations to the Challenges of Micro Finance Institutions in Uganda: a Case of Selected Districts in Uganda
    ACTA UNIVERSITATIS DANUBIUS Vol. 17, No. 3, 2021 Pragmatic Policy Recommendations to the Challenges of Micro Finance Institutions in Uganda: A Case of Selected Districts in Uganda Ben Ssembajjwe1 Abstract: The study was set to investigate the challenges facing microfinance institution with a case of four districts and propose policy recommendations in Uganda. These included Mpigi, Wakiso, Luwero and Mukono. The study was guided by two specific objectives; to examine the major challenges facing the Microfinance institutions and to propose policy recommendations. The study used both qualitative and quantitative method of analysis. Data was collected using a structured questionnaire from a total of 136 respondents who included credit officers, top management officers Responses were categorized based on likert scale and means were generated using SPSS as package for interpretation of findings. The views of the officials were qualitatively analyzed and conclusions were made. The results of the study indicated; lack of collateral security, high bank rates, less government support, lack of information about clients, limited management capacity, high default rates, inadequate loan funds and microfinance institution have turned out to be profit oriented, poor management capacity and loan diversion as challenges. The study recommended an increase in loan funds by mobilizing more saving and obtaining loans on lower interest rates, employment of qualified personnel and training the existing staff, encouragement of group lending, credit insurance and increased monitoring and supervision. Further study can be carried out in other areas of Uganda especially in a rural seeing. Keywords. Microfinance; Challenges; Uganda JEL Classification: G21; M21; I32 1. Introduction MFIs came in response to failure by formal financial institutions to extend financial services to the poor because of high transaction costs involved.
    [Show full text]
  • Uganda Section 2020
    PRESIDENT OF UGANDA UGANDA UGANDA SECTION 2020 EDITION PRESIDENT OF THE REPUBLIC OF UGANDA H.E. YOWERI KAGUTA MUSEVENI East African Manufacturers & Investors Directory East African Manufacturers & Investors Directory 129 UGANDA PROFILE UGANDA UGANDA Uganda Profile ganda officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is bordered to the east by Kenya, to the north by South Sudan, to the west by the Democratic Republic of the Congo, to the southwest Uby Rwanda, and to the south by Tanzania. Uganda is the world’s second most populous landlocked country after Ethiopia. The southern part of the country includes a substantial portion of Lake Victoria, shared with Kenya and Tanzania. Uganda is in the African Great Lakes region. Uganda also lies within the Nile basin, and has a varied but generally a modified equatorial type of climate. Uganda takes its name from the Buganda kingdom, which encompasses a large portion of the south of the country, including the capital Kampala. The people of Uganda were hunter-gatherers until 1,700 to 2,300 years ago, when Bantu- speaking populations migrated to the southern parts of the country. Environment and conservation The Crested crane is the national bird. Conservation in Uganda Uganda has 60 protected areas, including ten national parks: Bwindi Impenetrable National Park and Rwenzori Mountains National Park (both UNESCO World Heritage Sites[43]), Kibale National Park, Kidepo Valley National Park, Lake Mburo National Park, Mgahinga Gorilla National Park, Mount Elgon National Park, Murchison Falls National Park, Queen Elizabeth National Park, and Semuliki National Park. Economy and infrastructure The Bank of Uganda is the central bank of Uganda and handles monetary policy along with the printing of the Ugandan shilling.
    [Show full text]
  • UBA Member Bankers Association Bank Ceos
    Uganda Bankers’ Association Annual Report 20 18 Uganda Bankers’ Association Annual Report 3 Content. 6 10 About Uganda UBA Member Bankers Association Bank CEOs 8 14 UBA Structure and UBA Executive Governance Committee 2018 9 15 UBA Members as at UBA Secretariat 31st December 2018 Management Team Content. 16 31 UBA Committee Key Developments in the Representatives Uganda Banking Space 24 35 UBA Chairman’s UBA’s new Message Strategy 2019-2021 30 37 Message from the UBA Executive Director Activities 2018 68 Financial Statements for the Year Ended 31 December 2018 About Uganda Bankers Association ganda Bankers’ Association (UBA) is an umbrella organization for licensed commercial banks supervised by Bank of Uganda. UBA was established in 1981 and is currently made up of 32 UFinancial Institutions comprising Commercial Banks, Tier 2 Financial Institutions. Made up of Established in 1981 32Members 6 The objectives of UBA include; • To develop and maintain a code of ethics and best banking practices among its membership. • To encourage & undertake high quality pol- icy development initiatives and research on the banking sector, including trends, key issues & drivers impacting on or influ- UBA Vision encing the industry and national develop- ment processes therein through partner- A strong vibrant and ships in banking & finance, in collaboration respected financial with other agencies (local, regional, inter- services industry in national including academia) and research networks to generate new and original pol- the East African region icy insights. • To develop and deliver advocacy strate- gies to influence relevant stakeholders and achieve policy changes at industry and na- tional level. • To work closely with the regulator BOU and other non-bank financial institutions &- or ganizations in promoting financial sector growth, through training, development of UBA Mission products, technologies & initiatives to pro- mote financial sector growth.
    [Show full text]
  • Business in Uganda Country Profile Visas
    Business in Uganda Grant Thornton is one of the world's leading organisations of accounting and consulting firms providing assurance, tax and specialist advice to fast-growing, entrepreneurial people and businesses. We focus on helping individuals who own the businesses they manage, to reach their personal and business goals by providing practical, customised solutions and identifying and pursuing business opportunities, domestically and internationally. The strength of each local firm is reflected in the quality of our organisation. We operate in over 110 countries, bringing together 21,500 personnel in 585 offices worldwide. All Grant Thornton firms share a commitment to providing the same high quality service to their clients wherever they choose to do business. Experienced professionals combine invaluable local market knowledge with technically advanced systems to help businesses prosper in today's highly competitive international markets. If you require any further information, please do not hesitate to contact your nearest Grant Thornton International office. Country Profile Uganda is a land-locked country lying on the equator in central Africa. It shares borders with Sudan, DRCongo, Rwanda, Tanzania and Kenya. 20% of the country is covered by inland lakes. The rest ranges through tropical rain forest to savannah with mountains on the western border. The climate is tropical. Visas Immigration Information Visa/Entry (Work) Permit. A visitor is given a single journey visa to Uganda and on arrival he/she is issued with a visitor's pass for purposes of either spending a holiday, traveling, or investigating the possibilities of carrying on any business, trade or profession in Uganda. Please bring spare passport photographs.
    [Show full text]