AMFIU Complaint Handling System

Studies and Reports
State pof Pratice: Client Protection in Uganda’s Microfinance Sector PDF  | Print |  E-mail

The state of the practice report provides an overview of the legal framework, regulations, and industry practices related to client protection in Uganda’s microfinance sector.

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Client Protection Market Diagnosis PDF  | Print |  E-mail

The report highlights the Implementation of the Client Protection Principles in the Ugandan Market. Client protection has emerged as a key aspect of the microfinance industry in Uganda and globally. This has come in the wake of the microfinance sector to renew their focus on the client and ensure that client needs are at the core of the microfinance business.

The detailed report can be downloaded here

 
The State of Microfinance in Uganda 2014/15 PDF  | Print |  E-mail

This Report gives an overview of the status and dynamics of Uganda’s Microfinance industry. Highlights demographic and macroeconomic context,and the performance status of the microfinance industry.The report is based on the financial data from 50 institutions that consistently submitted their PMT reports to AMFIU in the period 2013-2014. These reports were then aggregated and analyzed using the Performance monitoring system – a central database housed at AMFIU.

The report can be downloaded here

 
Supporting improved compliance with the Universal Standards in Uganda PDF  | Print |  E-mail

AMFIU has for the past five years supported its members to institutionalize SPM, and this year AMFIU assessed members’ compliance with the new Universal Standards for Social Performance Management.

This case study documents the practical process that AMFIU has taken to support members to increase compliance with Dimension one of the Universal Standards (Define and monitor your social goals). This case study has been written for other microfinance associations that aim to support their members around Dimension One, but is also relevant for microfinance providers that wish to improve compliance in this area. This case has been documented as part of the Microfinance Center (MFC)’s Social Performance Fund support to the Association of Microfinance Institutions of Uganda (AMFIU).

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Listening to client complaints: UGAFODE Uganda PDF  | Print |  E-mail

This case study describes UGAFODE’s customer complaint handling system, and how this lines up with both Client Protection Principle 7 (mechanisms for complaint resolution) and with the Universal Standards for Social Performance Management.

This Case Study has been written as part of Microfinance Centre’s Social Performance Fund, funded by the Ford Foundation and with support from the Association of Microfinance Institutions in Uganda (AMFIU).

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Piloting and using the PPI: Vision Fund Uganda PDF  | Print |  E-mail

This case study piloting and using the PPI by Vision Fund Uganda was written with a specific audience in mind; microfinance providers who seek to improve their practice in relation to specific standards of the Universal Standards for Social Performance Management. It was written as part of the SP Fund provides a practical overview of the process that VFU underwent to implement the Progress out of Poverty Index (PPI) Tool, provides recommendations on improving effectiveness in relation to the Universal Standards, as well as general lessons for practitioners.

Full report can be downloaded here

 

 
From Financial Exclusion to Formal Inclusion PDF  | Print |  E-mail

AMFIU in collaboration with NUDIPU have been implementing a Microfinance and Disability Project since 2006 with support from Norwegian Association of Disabled (NAD). The Project aims at increasing access to sustainable microfinance services for persons with disabilities (PWDs) in Uganda. Light for the World (LFTW) Netherlands and NAD financed this study aiming at unveiling the dynamics of organisational change – both the drivers of and obstacles to change - that have taken place within the MFIs/SACCOs in relation to disability inclusion,as well as the life changes experienced by persons with disabilities in accessing microfinance services.

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The State of Microfinance in Uganda 2012/13 PDF  | Print |  E-mail

The State of Microfinance in Uganda 2012/13, is a report based on data collected from 95 institutions. The report identifies the main actors in the sector, describes the current regulatory framework for microfinance business, and the services provided by MFIs. While the report analyses the performance of MFIs at the general level, it goes further to analyse the performance of MFIs relative to their peer groups, and to the respective regions.

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Census of Micro finance institutions 2010 PDF  | Print |  E-mail

In 2010 the Uganda Bureau of Statistics conducted a Census of Micro finance institutions. The study highlights the distribution, growth,governance of MFIs Uganda, client outreach, lending methodology and loan portfolio among other things.

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Status of Missing SACCOs and MFIs From The 2005/2006 Census Of Tier 4 Institutions PDF  | Print |  E-mail

Abstract: The Association of Microfinance Institutions of Uganda (AMFIU) in collaboration with the Financial Sector Deepening Project Uganda (FSDU) contracted FRIENDS Consult to undertake a study to track and report on the status of missing SACCOs and non- cooperative MFIs in Uganda. This followed a census of Tier 4 micro-finance outlets carried out in 2005/2006 by the Ministry of Finance, Planning and Economic Development with assistance from FSDU. The results of the Tier 4 census revealed a variance between the institutions that were found by the Census team and the ones legally registered (here referred to as the missing SACCOs and MFIs).

Tables of Contents

Introduction 1
Work methodology 3
Summary of responses/findings 8
The fate of missing SACCOs and MFIs 10
Observations and Conclusions 17
Recommendation 18

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A Survey on Regulation of Microfinance Companies and NGOs PDF  | Print |  E-mail

Abstract: Regulation of the microfinance sector, especially the lower tier institutions, has always posed a challenge in most countries. Government of Uganda proposes to regulate Tier 4 microfinance institutions under two separate laws one for SACCOs and the other for non-deposit taking Tier 4 MFs. Government has already drafted the two laws and discussed them with selected stakeholders. As the industry network and custodian of MF sound practices,

AMFIU would like to make technically informed recommendations on Tier 4 regulation. This necessitated a survey of relevant aspects nationally, compilation of lessons learnt elsewhere and compiling a report that would inform AMFIUs recommendations. AMFIU contracted FRIENDS Consult to undertake the survey, whose findings and recommendations are presented in this report. The current financial sector regulatory framework leaves out Tier 4 MFIs, which are vital in provision of financial services to low income people but whose activities, unless regulated, could also disrupt peoples economic lives. Rationale for Tier 4 regulation lies in the need for continued financial sector stability, safety of peoples deposits, need for inclusiveness of regulation, borrower protection and overall national economic development.

Table of contents:

1 Introduction 5
2 Regulatory framework for the financial sector in Uganda 7
3 Experiences and lessons from other countries 13
4 Suitable regulatory regime for tier 4 institutions 18
5 Probable effects of the regulating tier 4 institutions 26

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Microfinance Tomorrow: Refocussing the vision for the industry in Uganda PDF  | Print |  E-mail

Abstract: Since the last booklet was produced in 2006, a number of developments have taken place in the microfinance industry in Uganda. The key developments include the trend towards commercialisation, winding up of Foundation for Credit and Community Assistance (FOCCASS), and imminent acquisition of Uganda Microfinance Limited (UML) by Equity Bank of Kenya. On the SACCO front, the industry has witnessed significant changes, with some SACCOs growing laterally by establishing branches. Coupled with this growth has been increased interest in regulating SACCOs. Despite these developments, key challenges have persisted in the area of outreach, and agricultural financing has continued to face service gaps. At the broader level, the government launched the “Prosperity for All Programme” which seeks, among other interventions to address inadequate access to financial services. Commonly known as “Bonna Bagaggawale”, the Rural Financial Services programme is designed to use a SACCO-per sub-county strategy to channel both agricultural and commercial loans at

below market rates to borrowers. The approach to “Bonna Bagaggawale” has raised serious concerns in the industry, particularly its emphasis on SACCOs whose impact is perceived to likely disintegrate the

once highly-coordinated microfinance industry. As a result, a number of donor projects have withheld or withdrawn their support, while the microfinance forum (MFF) that used to bring stakeholders together ceased to function. This booklet has been prepared to provide analytical issues, which may be used to guide

policy among all stakeholders. It is based on the presentations made during the workshop, issues arising, and the consultants’ views on these issues.

Table of contents

1. Microfinance at crossroads 1

2. Unity and coordination 7

3. Regulation and its implication to the poor 12

4. Professionalism and sound practices in microfinance: What has gone wrong in Uganda? 17

5. Challenges of resource mobilization and capacity building for microfinance institutions 23

6. Social performance assessment and management 27

7. Integrating technology and developing systems amidst limited resources into microfinance operations 30

8. Agricultural financing 32

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Regulating and Strengthening Tier 4 Microfinance Institutions in Uganda PDF  | Print |  E-mail

Abstract: Efforts to develop and expand the outreach to the poor and rural areas of Uganda’s micro-finance institutions (MFIs) have raised a number of important questions: What types of institutions can effectively improve access to financial services, especially in poor, rural areas? Can these MFIs be self-sustaining? Who is responsible for ensuring satisfactory performance of such institutions and the safety of savings by the poor in them? These issues arise from real-life-experience in Uganda with the operation and expansion of MFIs. Practitioners, development partners, and politicians and government agencies share these concerns ? although their perspectives and approaches may differ. This volume analyses microfinance regulatory frameworks in Uganda in such a way as to represent or inform perspectives of various stakeholders that have been involved in the process, including MFI apex organisations,1 relevant Government of Uganda agencies,2 international development partners, and microfinance practitioners themselves. Furthermore, given the stated interest of Parliament in the regulation of “Tier 4” MFIs that are not supervised by BOU, a number of parliamentarians have been included and informed during the consultative process. This volume provides the technical expertise and background needed to establish a regulatory framework for the Tier 4 segment of Uganda’s microfinance industry that will be cost-effective in protecting the savings of the poor and in ensuring that weak MFIs do not undermine the stability of the financial system – the two major justifications for public intervention in regulating financial institutions and activities. This introductory chapter provides an overview of the volume and guidance to its key findings. The next section (1.2) highlights the socio-economic and political background of microfinance in Uganda. Section 1.3 synthesises the key findings and recommendations regarding a future regulatory framework. Section 1.4 discusses the role of national apex institutions within such a framework. Section 1.5 describes the flow of chapters and annexes of this volume. Section 1.6 concludes by listing the recommendations.

Table of content

1. Tier 4 of the Micro finance market in Uganda 1

2. Strengthening and regulating Tier 4 Micro finance 17

3. Issues paper on regulation of Tier 4 Financial Institutions 37

4. References 79

5. Annexes 83

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Uganda Micro Finance Industry Assessment PDF  | Print |  E-mail

Abstract: This Industry Assessment Report presents the status and dynamics of Uganda’s microfinance industry. Starting with the broader demographic and macroeconomic context, the report proceeds to present the relevant issues in the wider financial sector before narrowing down to the situation and status of the microfinance industry. It is structured so as to be useful for persons encountering Uganda’s microfinance industry for the first time, those who would like to compare it with others as well as those who just want to update their information on the industry. Topical issues like the historical perspective of industry development, regulation, government initiatives, funding and how it has evolved over time, microfinance impact, and opportunities and challenges are covered.

Table of content

  1. Introduction 8
  2. Country overview 10
  3. The financial sector 15
  4. Micorfinance Industry Development 32
  5. Regulation of Financial Services 51
  6. Funding Sources 59
  7. Impact and Social Performance of Microfinance Activities 70
  8. Conclusion 75

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Plot 679, Wamala Rd
AMFIU House, Najjanankumbi
P.O Box 26056
Kampala, Uganda.
Tel: (256) 414 259176(256) 414 259176, 393 265540
Fax: (256-414)254420
Email: amfiu@amfiu.org.ug