EXECUTIVE DIRECTOR’S REMARKS AT A SENSITISATION WORKSHOP ON THE TIER 4 MICROFINANCE INSTITUTIONS AND MONEY LENDERS ACT AND REGULATIONS AT FAIR WAY HOTEL KAMPALA IN SOLAIUM VISTA HALL.
The Managing Director Association of Microfinance Institutions in Uganda
Chairperson Uganda Money Lenders Association
Managing Director Metropol
Invited Guests in your respective capacities
Ladies and Gentlemen
First I would like to thank you all for creating time out of your busy schedules to attend this important workshop. I also congratulate Money Lenders and Non Deposit Taking MFIs who have acquired Licenses from UMRA.
You are all aware that The Tier 4 Microfinance Institutions and Moneylenders Act, 2016 is now effective. The Act provides a framework for licensing, regulating and supervision of all Tier 4 Microfinance Institutions and Moneylenders in Uganda, and the establishment and operationalization Microfinance Regulatory Authority (UMRA).
UMRA is mandated to license, regulate and supervise including savings and credit cooperatives (SACCOs), credit-only microfinance Non-governmental organizations (NGOs), private businesses and individuals engaged in financial services (including money lenders), and other community-based and informal financial groups, such as village savings and loan associations (VSLAs).
A key objective of UMRA is to improve the confidence of Ugandans in working with Tier 4 institutions and Money Lenders. Part of this will be achieved through improving the actual performance of institutions via the licensing and supervision aspects.
It is important that consumers believe they are treated fairly. Having avenues to complain, being treated respectfully in this process and receiving timely resolution to problems is also crucial toward improving confidence in this sector.
Some complaints have been received and registered, Authority is working towards strengthening the complaint handling mechanism and system. In the same spirit, the Authority is in the process of formulating consumer protection guidelines to as required by the Law.
To date UMRA has licensed over about 200 Moneylenders and about 45 NDMFIs. We have not done much for the SACCOs because we are awaiting for the Regulations which are before the First Parliamentary Counsel for drafting.
The next step after the issuance of the licenses is to monitor, regulate and supervise to ensure compliance. This will be done both onsite and offsite. It is therefore paramount that we sensitize you and prepare you to comply and the journey begins today.
The objective for the workshop is to sensitize you about the compliance requirements and also to share information on how to enhance Business growth & Credit Risk Management through Credit Information Sharing Mechanism.
I will therefore not spend a lot of time on my speech but rather to give more time to you to listen to the presentations and have discussions thereafter. I have no doubt that we are going to have fruitful deliberations which will create more awareness amongst our licensees.
Allow me to conclude by reiterating that UMRA will remain steadfast in working with you and giving necessary support to ensure compliance. Once again I that you all and in a special way I want to thank Metropol Credit Reference Bureau for facilitating the workshop.
I now officially declare the workshop open.
FOR GOD AND MY COUNTRY