Business

UBA to spend Shs250 million on financial literacy

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By MARTIN LUTHER OKETCH

Posted  Thursday, July 3  2014 at  01:00

In Summary

Financiers want the public to make wise choices when taking loans.

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Kampala.

Uganda Bankers Association (UBA) will invest up to Shs250 million in promoting financial literacy, the chairperson, Mr Chinedu Ikwudinma, has said.
“This is an on-going programme, and reflects the commitment of the UBA to financial management culture, to support our national ambitions for strong economic growth and eradication of poverty,” he said.
The bankers’ body has also advised the public to make the right choices in order to access low interest rate loans from commercial banks.
The advice comes as high interest rates continue to be a big problem in Uganda’s financial market, which in a way has crippled the development of small/medium enterprise as well as access to financial services to the large population.
Responding to questions on the persistent high interest rates in Uganda, during the launch of the Annual National Secondary Schools’ Performing Arts Festival in Kampala recently, Mr Ikwudinma, also the Citi Bank managing director, said getting low interest rates from commercial banks depends on one’s ability to make the right choice and the power of their financial knowledge.
Mr Ikwudinma said the general public must present their strength of choices whenever they go to banks for loans and they must also make wise decisions regarding where to borrow from.
“Move from one bank to another to find out how much interest rate they charge, there are banks who give loans at 10 per cent, 14 per cent and as low as 4 per cent. Exercise your option and use your powers of choice to borrow when and how,” he said.
He said UBA will conduct out financial literacy programmes amongst key stakeholders including business people, students and the public.

Governor’s Opinion

The governor Bank of Uganda, Mr Emmanuel Tumusimme Mutebile, said financial literacy is part of the broader concepts of access to financial services. “We want the benefits of financial services spread more widely throughout the population to support broad based economic growth, reduce inequality and poverty,” he said.

moketch@ug.nationmedia.com