NON-DEPOSIT TAKING MICROFINANCE INSTITUTION LAUNCH UMBRELLA BOBY-CRY FOUL PLAY

Francis Atuhaire shaking hands with Opio Ogwanga C E O Gnugrid looking is UMRA official Carol Atuhaire

By George Bukenya

In an effort to improve service delivery and bargain for fairness of government policies, the Non-Deposit taking Microfinance institutions have constituted and launched an Association that will be agitating for the player’s rights.

According to the pioneer chairman, Board of Directors of the Association, Francis Atuhaire, the Association is established and launched with a major objectives of having a common voice, ensuring professional services, sharing information, financial inclusion and advocacy among others.

Mr. Atuhaire while addressing the representatives of the member institutions at Fairway Hotel in Kampala, said that they face a challenge of double taxation and multiple licensing from Local governments and Uganda Microfinance Regulatory Authority (UMRA) which affects their service delivery.

“The challenge of multiple licensing is affecting us because it has budgetary implications in our operations. However we are yet to cause a meeting with UMRA to see how it can be harmonized “Atuhaire stated.

He also revealed that the Association has only a total of 100 members’ institutions that have so far subscribed yet according to his research, there are over 1000 Non-Deposit Taking Microfinance Institutions in the country.

The Association was formulated in August, 2022 and was registered with the Uganda Registration Service Bureau, has proper administrative structures and partners with other corporate entities.

The Senior Microfinance officer, Carol Atuhaire who represented UMRA Executive Director, urged the association’s leaders to encourage more institutions in their jurisdiction to become members because this will help them to grow big in terms of a sound unified advocacy and making their name known.

She also cautioned them to always maintain a professional relationship with UMRA and other government bodies something she says will also help them to foster their mandate, network and develop.

“Non-Deposit Taking Microfinance institutions are very important in shaping Uganda’s economy because they reach to the low income earners who may not be able to deal with convention banking  institutions, therefore,  they need to be handled with great care.” Atuhaire said.

She further said that the financial inclusion with is a key pillar to such institutions, hinges on three concepts that is, Usage, Access to affordable loans and Quality financial products which must be adhered to.

Atuhaire also urged the Association members to embrace management information systems and credit reference bureau to fast truck their clients so as to minimize risks and losses.

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