What you need to know:
The institution will also conduct financial literacy programmes.
Kampala. The Uganda Agency for Development Limited (UGAFODE) microfinance has unveiled a mobile banking system that will see its close to 60,000 clientele able to save, deposit and repay loans using their mobile money accounts.
The service was unveiled during a media briefing at the UGAFODE head offices in Kampala last week.
The initiative, according to chief executive officer Wilson Twamuhabwa, resulted from a 29.3 per cent (Shs4.8b) investment by Accion International, a global non-profit organisation that supports microfinance institutions to provide financial services to low-income earners.
“Our new partnership with Accion International will help UGAFODE expand across Uganda and provide more quality financial services to families, communities, and entrepreneurs who have made do without them for too long,” Mr Twamuhabwa said.
He added: “The initiative will be made easier to the rural clients through financial literacy where we shall be working with mobile money agents on how to translate some of the wordings.”
According to Accion International chief Executive officer Michael Schlein, there is a need to enhance people’s attitude towards technology driven banking services.
“Millions of Ugandans lack basic ways to build savings, start a business, or build a home,” he said.
According to statistics, mobile payment users have surpassed the number of people holding accounts in the financial institutions that are supervised by Bank of Uganda.