BRAC, the largest microfinance provider in Uganda, is transforming as a Tier 2 Credit Institution (CI) to broaden the range of financial services it provides to Uganda’s low-income communities.
On behalf of the president, First Deputy Prime Minister General Moses Ali formally inaugurated the newly licensed institution – BRAC Uganda Bank Ltd (BUBL) at a ceremony held at the bank’s Kabuusu branch on April 25th 2019. Evelyn Anite, the State Minister of Finance for Investment and Privatization was also present at the ceremony.
BRAC started its microfinance programme in Uganda in 2006, growing its footprint to 163 branches across 84 districts with more than 200,000 clients. As part of its commitment to ensuring greater financial inclusion, especially for marginalised women in rural and low-income communities.
BRAC has been pursuing a change in its regulatory status that would allow it to expand the scope of its financial services. The transformation will enable BRAC Uganda Bank Ltd to offer savings accounts, money transfer, insurance and other financial services in addition to its existing credit products to the people of Uganda.
In his remarks, First Deputy Prime Minister General Moses Ali said, “BRAC has a specific focus on women, youth and rural population. I am very much pleased that these are also the three priority areas of the comprehensive strategy that the Ugandan Government developed for financial inclusion”
The transition from a Tier 4 credit only NGO to a Tier 2 CI will allow BRAC to drive more impactful financial inclusion at an even greater scale. “Our clients can now have the confidence and trust of saving at a formal institution, a critical component that ensures resilience for low-income households in times of social or economic shocks”, said Jimmy Adiga, the CEO of BUBL.
BRAC has hosted day-long events with its staff, partners, clients, regulators and other stakeholders to celebrate this hallmark achievement. Following the ceremonial opening in the morning by the First Deputy Prime Minister of Uganda, General Moses Ali at the head office branch of the bank.
a launch event with the broader community of stakeholders took place at the Victoria Hall of The Kampala Serena Hotel later in the evening. Mr Mackay Aumo, Director of National Payments System, of Bank of Ugada delivered speech on behalf of the Deputy Governor of the Bank of Uganda.