Microfinance centre lends out Shs285b

Thursday December 21 2017

Beneficiaries. Members of Muyoka Sacco in

Beneficiaries. Members of Muyoka Sacco in Kampala during the launch of their Sacco recently. MFSC gives loans to various institutions. PHOTO BY STEPHEN WANDERA OUMA 



The total asset of the Microfinance Support Centre (MFSC) has increased from Shs72 billion to Shs103 billion indicating the institution is expanding and making impact in the lives of ordinary Ugandans.
The MFSC was created in 2001 to manage micro credit on behalf of the government.
The Centre says its portfolio has also increased from Shs54 billion to Shs68 billion showing a growth of Shs14 billion.
In terms of clients MFSC says it has 2,117 client institutions, lent out Shs285 billion, and trained 4,759 staff and board members of the institutional clients.
Addressing guests last week at Sheraton Kampala Hotel during the launch of its new logo, the chairperson of the MFSC, Ms Justine Bagyenda, said the MFSC is a fully owned government institution and it’s committed to providing affordable credit the local population.
“With the launch of the new logo, we are going to be very visible as new born babies, we are still committed to providing low interest credit to our clients, our interest rates ranges from 9 to 17 per cent,” she said.
The issue of affordable credit to the general public remains a big challenge in Uganda due to high interest rate charged including the one of MFSC.
However, Ms Bagyenda defended their current rate, saying: “We are still the best provider of the affordable finance, we have been growing and we are still growing; we are going to move towards our new logo by introducing new products and it is the main focus of MFSC,” she said.
The executive director MFSC, Mr John Peter Mujuni, said during the past five years the institution has done remarkable well.
“Notably, there has been diversification of products and restoration of confidence of clients in the institution. We have introduced Islamic financing which was approved in May this year. So far we have lent Shs17b in Islamic financing mechanism,” he said. Mr Mujuni added: “We are going to design new products to meet the needs of the clients.”
The State minister of Microfinance, Mr Kyeyune Haruna Kasolo, said in the interest of making more affordable to the general public government will continue recapitalising the Uganda Development Bank (UDB) and the MFSC.
“Microfinance is the answer to affordable credit. MFSC continues to do well and I am going to push for the recapitalisation of it,” he said.
Makerere University Prof Augustus Nuwagaba, said the rate of MFSC is still very high and the banks are posing serious competition to MFSC.