A report by the Uganda Bankers Association, an umbrella association of the banking sector, reveals that while many financial institutions have a significant number of women employees, men still dominate executive positions. Only eight out of 36 institutions have female CEOs. Some banks, like Brac, have a larger proportion of women staff, but others, including Centenary Bank and Post Bank, are still male-dominated. Affirmative action programs and upcoming initiatives aim to promote gender equity in employment.
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Uganda: dcfu Bank appoints new CEO
Charles M. Mudiwa has been appointed as the new Managing Director and CEO of dfcu Bank Limited, effective from 11th April 2023. With over 26 years of banking experience and a track record of successfully turning around businesses and increasing profitability, Mudiwa will lead the Bank at a critical time as it implements a customer-focused strategy to transform lives and businesses with innovative solutions and empowered people. Mudiwa is also known for being a staunch champion for gender and diversity.
Categories: Banks -
Uganda: SC Ventures and Yabx to start providing consumer finance
Standard Chartered’s innovation and fintech investment arm SC Ventures has partnered with fintech Yabx to offer consumer finance in Africa. The companies will offer “purpose-driven loans” in Uganda, focusing on education, skill development, and gender, before expanding to other African markets. The companies are leveraging the impact of the Covid-19 pandemic to digitize banking and access to credit for underbanked customers. The partnership aims to provide a seamless experience, using technology and data to serve the underserved in Africa.
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Uganda: DFCU Bank appoints new director
Sebuyira Mukasa has been named a non-executive director at DFCU Bank in Uganda. Mukasa has over 20 years of experience in the banking industry and has held various leadership positions in financial institutions in Uganda and East Africa. He will lead the bank’s board and provide strategic direction for the bank. The appointment of Mukasa is expected to enhance the bank’s growth and position as a leading financial institution in Uganda.
Categories: Banks -
Uganda: MFIs want recognition as microfinance banks
Microfinance institutions and money lending firms in Uganda are pushing to be recognized as microfinance banks. They argue that this recognition will give them visibility and trust among the clients they serve. Currently, all microfinance institutions are categorized as microfinance deposit-taking institutions (MDIs) and divided under four tiers. By being recognized as microfinance banks, they will be able to mobilize resources which can be used to bring down the current high interest rates. The institutions will build consumer confidence and improve the saving culture among Ugandans. However, there are concerns about the institutions being able to handle the added pressure of operating as banks and meeting the capital demands.
Tags: Uganda -
Uganda: State-owned banks undercapitalized?
Tropical Bank and Post Bank, two financial institutions owned by the government of Uganda, are running out of capital, according to the country’s Auditor General. The Financial Institutions (revision of minimum capital Requirements) Instrument, 2022, requires banks to have a minimum paid-up capital of at least Shs120bn ($32.7m) by the end of 2022. Tropical Bank currently has a paid-up capital of Shs88bn, while Post Bank has Shs98bn. Post Bank has responded that it will comply with the minimum capital requirement and does in fact have a paid-up capital of Shs112bn.
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Uganda: Private-sector credit up, approval rate down
A government report from Uganda’s Ministry of Finance, Planning, and Economic Development (MoFPED) revealed that the stock of outstanding private sector credit grew 0.4% in November 2022 despite an increase in lending rates. The report also stated that the value of credit approved for disbursement in November 2022 was Shs1.139 trillion, representing a 50.4% approval rate compared to the 64.2% approval rate in October 2022. This was attributed to heightened risk aversion from lenders and the tightening liquidity in the financial sector following the rise of the Cash Reserve Ratio by the Central Bank.
Tags: Uganda -
DFCU Bank appoints acting Managing Director
DFCU Bank has appointed William Sekabembe as the new acting Managing Director. He takes over from Juma Kisaame who will remain as a director on the bank’s board.
Categories: Banks -
DFC and Mastercard will contribute $50 million to promote financial inclusion in Africa
The US Agency for International Development Finance (DFC) and Mastercard have announced a $50m funding project to promote digitalisation and financial inclusion in Africa. The project will see DFC invest up to $50m in groups that are part of the Community Pass network, which helps to provide digital connectivity, smartphone use and ID systems to underserved communities in India, Kenya, Mauritania, Mozambique, Tanzania and Uganda. The partnership aims to make the digital economy more inclusive and sustainable for all.
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Absa Bank Uganda extends loan repayment amid economic uncertainty
Absa Bank Uganda has announced a range of financing packages for salaried individuals in order to help customers get through the current uncertain economic environment. The packages include a two-month repayment holiday, 0% arrangement fees, and a seven-year repayment period for unsecured loans for new customers. The bank is also offering up to UGX 2bn ($0.54m) on mortgages and 0% arrangement fees for customers purchasing homes. The moves come as Absa seeks to help its customers achieve their goals in the new year, including home ownership, purchasing land, buying a new car, or starting a business.
Categories: Banks