Uganda’s Ministry of Finance has once again emphasized the critical role that Microfinance Institutions (MFIs) and Savings and Credit Cooperatives (SACCOs) play in fueling economic growth, fostering wealth creation, and promoting financial inclusion. Moses Kaggwa, Director of Economic Affairs, delivered the message on behalf of Finance Minister Matia Kasaija during the 3rd Annual Microfinance & SACCOs Governance Forum at Hotel Africana in Kampala.
Kaggwa highlighted that MFIs and SACCOs are particularly vital in regions where access to conventional banking is limited. He stressed that these institutions not only support economic development but also empower communities and safeguard consumers’ financial interests. “Microfinance Institutions and SACCOs are indispensable for wealth creation and economic transformation,” he said.
The forum, themed “The Role of Microfinance Institutions and SACCOs in Wealth Creation,” convened policymakers, financial experts, and sector leaders to discuss governance, digital adoption, and strategies for inclusive finance. Minister Kasaija commended the Uganda Institute of Banking and Financial Services (UIBFS) for organizing the event, describing it as a “noble initiative” that strengthens dialogue and problem-solving in the financial sector.
Digital transformation was a key focus of the discussions, with the Minister emphasizing that financial institutions must embrace technology to remain efficient and relevant. “Adopting digital platforms is no longer optional; it is essential for improving service delivery and streamlining operations,” Kasaija noted, citing Uganda’s implementation of systems such as the Integrated Financial Management System (IFMS) and e-Government Procurement (eGP).
He also highlighted the digitization of Parish Development Model (PDM) SACCOs, ensuring that government funds are delivered transparently and promptly from the national treasury to intended beneficiaries. This innovation, he said, strengthens accountability and efficiency within local financial systems.
The Minister underscored how access to affordable credit through MFIs and SACCOs enables entrepreneurs—especially in rural and peri-urban areas—to invest in micro and small enterprises. “These institutions empower citizens to grow income-generating ventures, create jobs, and enhance household incomes, thereby driving national economic growth,” he explained.
Uganda has recorded significant progress in financial inclusion, with 81% of adults now formally part of the financial system, up from 77% in 2018. By mid-2024, the country had registered 43.4 million mobile money accounts, reflecting rapid adoption of digital financial solutions nationwide.
Experts at the forum emphasized that strong governance within MFIs and SACCOs is crucial to protect members’ savings, maintain sustainability, and build public trust. The annual governance forum continues to serve as a key platform for shaping policy, raising professional standards, and advancing Uganda’s vision of a resilient and inclusive financial services ecosystem.
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