Mirco-saving 'could improve access to finance in Uganda'
Improvements to the micro-saving sector could make access to financial services easier for those living in Uganda.Improvements to the micro-saving sector could make access to financial services easier for those living in Uganda.
Moses Kaggwa, the country's Commissioner for Microfinance, explained on Wednesday (August 24th) there is potential for more citizens to use formal methods to put money aside, the Monitor reports.
Speaking at the Rural Financial Service Programme media dialogue in Kampala, he stated that just 7 percent of people store their savings in banks.
He blamed this on low earnings, poor infrastructure and limited access to financial institutions.
The publication noted that 71 percent of Ugandans are however actively saving, which suggests many use informal methods, thus preventing funds from properly circulating.
Across Sub-Saharan Africa there is a there is a growing trend for the use of micro-saving innovations, as founder of the Microfinance Hub Blog Fehmeen Khan noted in an article for myKRO.
The expert explained large savings and credit cooperative organisations (Saccos) are now being linked to formal finance providers.
Indeed, the monitor reported that according to Coordinator of Microfinance Institutions at the Ministry of Finance Lance Kashugyera, there has been a 45.2 per cent growth in membership of government-supported Saccos in Uganda.