This programme focuses on conducting studies on contemporary issues in microfinance and publishing success stories and best practices at industry and institutional levels. It also focuses on enhancing a shared understanding of the microfinance issues in the country through dialogue.

AMFIU lobbies government at various levels to influence it in the development of an appropriate policy framework for microfinance practitioners. This is done based on researched data. The MDI Act (2003) for example was a result of AMFIU’s lobbying efforts. Recently, AMFIU actively participated developing the regulatory framework for tier 4 institutions.

AMFIU organizes lateral learning workshops, and trainings especially in areas of governance, use of the Performance Monitoring Tool (PMT), and consumer education for its members.

AMFIU is encouraging MFIs to evaluate the environmental, social and governance aspects of their businesses beyond their finance performance. This is done through educating, sensitizing, promoting and building capacity of the members to be able to capture and report on their social mission.

AMFIU noted an increasing demand, both internationally and locally for the need for MFIs to systematically report on their social mission. AMFIU started educating, sensitizing, promoting and building capacity of the members to be able to capture and report on their social mission.

AMFIU, as a national apex offers a global perspective that is difficult for individual MFIs to achieve but is able to share industry experience, best practices, offer informed technical support and mobilize the resources necessary to develop approaches to SPM.

Broadly, AMFIU as network is not only best suited to promote SPM but also stands to benefit the following by promoting SPM;

• Disseminating local information: AMFIU has a unique and advantaged position as a recognized national apex to share local and regional SP information with technical assistance providers and investors.
• Providing the stakeholders with the necessary information and services. To gain a competitive fundraising advantage, MFIs need to demonstrate that they are not only achieving their financial goals but that they are also achieving the social mission they were set up to achieve. AMFIU is in a position where it can easily provide this kind of information to the stakeholders, investors, donors and the MFIs.
• Supporting pro-microfinance policy: To advocate for a pro-microfinance policy and regulation, there is need to demonstrate the sector’s contribution to the common good. Encouraging members to track, report and discuss social performance outcomes helps the association arm itself with data to support its advocacy work.
• Supporting a balance growth: Promoting social as well as financial performance will breed a healthy growth among the members of the association. MFIs that are only required to manage and report on their financial performance are likely to suffer from a mission drift.
• Reducing Reputational Risk: The microfinance industry has come under increased scrutiny as stakeholders from microfinance clients, to funders and governments demand greater transparency and measurable results that demonstrate the effects of microfinance on the poor. Therefore, it is essential that the microfinance industry is able to legitimately demonstrate their commitment to the social outcomes of their work

 

AMFIU has positioned itself as the information hub of the microfinance industry in Uganda. This is being done through research, baseline studies, and the establishment of a microfinance resource centre and consolidating performance monitoring tool (PMT) data through a central database, the performance monitoring system (PMS). Stakeholders can access a wide range of information on microfinance in Uganda and worldwide from AMFIU. AMFIU also publishes a quarterly newsletter as a tool for information exchange.

In addition, AMFIU organizes quarterly microfinance industry information exchange meetings where stakeholders share and discuss the latest issues affecting the microfinance industry.

Visit the Information and Resources section of this website to see publications from AMFIU

This is a programme which is being implemented to create equal opportunities for People With Disabilities (PWDs) to access financial services. AMFIU partnered with National Union of Disabled persons of Uganda, NUDIPU, and NAD the funding partner, to promote equalization of opportunities for persons with disabilities to access financial services. The program rebranded into the i-SAVE economic empowerment program that is taking a more integrated approach through strategies of; promotion of access to formal financial services, entrepreneurship skills development as well assess to informal financial services, the we Can manage project of VSLA.

The iSAVE program works with local communities to encourage the establishment of village savings and credit groups. The groups are self-selected and managed by persons with disabilities, but also include non-disabled members such as caretakers of persons with disabilities and other people in the community. These groups are then engaged in extensive training on how to develop and maintain a savings and credit group that is member-owned and self-managed. Being village-based, it has no external liabilities, and all profit from interest is kept within the group. When the group reaches a certain level of maturity the members are linked to formal financial services (i.e. licensed microfinance institutions – MFIs).

A number of activities have been implemented and these include sensetisation of MFIs to be sensitive to the financial needs of the PWDs and therefore tap their market potential. The PWDs are also sensitised to be economically active and therefore be able to access financial services. This have seen a big progress in Inclusion of persons with disabilities in financial services. More institutions have come up to commit to work with the Programme so that they are technically supported to make their services disability Inclusive. MOUs have been signed with a number of MFIs as a sign of commitment to the cause.

Efficient performance monitoring is crucial for the success of any institution. AMFIU together with stakeholders developed a performance monitoring tool (PMT) that is used by the MFIs to capture data from an institution’s accounting and portfolio system to create standardized reports

The Performance Monitoring Tool (PMT) is essentially a tool to capture data from an institution’s accounting and portfolio system via an input form or an import function; based on this data it creates financial reports and ratios to be used by an institution’s management. It is not a comprehensive Management Information System, and shouldn’t be seen as a substitute for this. However, it collects, stores and computes key financial data in a systematic way providing value for any financial institution.

The purpose of the PMT is to enable MDIs, MFIs, SACCOs and financial institutions involved in microfinance to self monitor, report and receive feedback on their progress against relevant performance standards and peer groups in a coherent and transparent way. This contributes to improved risk management and promote adherence to minimum requirements and good practices within the entire industry, thus improving financial services available to existing as well as prospective clients. While saving valuable time spent on reporting for the various financial institutions, this also ensures the availability of more comprehensive and accurate information on the sector, and serve as a cornerstone for regulation and policy making for Uganda’s financial system as a whole.

Microfinance institutions (MFIs) in Uganda voluntarily use the PMT to report on their financial performance. The tool captures data from an institution’s accounting and portfolio reports, then aggregates this data to produce meaningful information that is easy for board members, staff, and other key stakeholders to understand and interpret. 

Key Developments

• • In 2015, AMFIU held the first ever Transparency Awards for the Ugandan microfinance sector. Financial Reporting still stands as an important aspect in the growth and development of the microfinance industry. The popularity of the PMT has increased in the microfinance industry not only in Uganda but also in Rwanda and soon to be in Sudan, Kenya and Tanzania. To appreciate the users and to encourage the non-users, AMFIU held the “AMFIU TRANSPARENCY AWARDS” for the first time ever during the national Microfinance conference in January 2015.Institutions were awarded on the basis of best performing in terms of ( profitability, efficiency, liquidity and portfolio quality) and best reporting( Consistent and on time). A total of 26 institutions were awarded both PMT and SPM awards combined. Since then, this activity has continued to be on the AMFIU calendar annually.
  • The online version of PMT was launched in 2022 and can be accessed at https://pmt.amfiu.org.ug To start using the system and get feedback, contact pms@amfiu.org.ug

Using the PMT, AMFIU aims to increase MFI transparency, and hence accountability. Ultimately, these help to bring the best microfinance services to the people of Uganda.

AMFIU is the custodian of the Performance Monitoring Tool