Governor Mutebile decries limited access to credit
The Governor bank of Uganda Professor Emmanuel Tumusiime Mutebile highlights limited accessto finance and credit especially from financial institutions such as commercial banks by small and medium enterprises (SMEs) as the major barrier to financial inclusion in Uganda.
He says many people in the informal sector and medium enterprises may not be able to provide collateral for credit in form of loans due to the small asset base yet it is a very important factor in accelerating investments, job creation and transforming small businesses into strong enterprises.
In a speech read by the deputy Governor Dr. Louis Kasekende, Mutebile says SMEs access to credit is further constrained by exacting legal requirements, lack of a standardised and shared information registry as well as the fear by Banks to take credit risks associated since they are looked at as most likely to default on loans.
He said this while speaking during the financial inclusion week Get-Together and dialogue at Pearl of Africa Hotel Nakasero.