By Our Reporter
The Uganda Registration Services Bureau (URSB) and Uganda Microfinance Regulatory Authority (UMRA) has signed a memorandum of understanding to further ease access to finance for small businesses.
According to Bemanya Twebaze, URSB registrar general: “This working partnership will help us promote the usage of our security interest in movable property registry (SIMPO) while enabling access to credit for business and personal growth through safer lending and easier borrowing.”
The SIMPO Act came into force in 2019. This law helps micro, small and medium enterprises (MSMEs or individuals with limited credit to use their movable assets as collateral for loans. SIMPO was developed in fulfillment of the Government of Uganda’s objectives in the Second National Development Plan 2015/16 – 2019/20 of reducing interest rates, decreasing default rates and increasing the pool of new borrowers.