The Association of Money Lenders of Uganda (AMLU) has pledged to address concerns raised by President Museveni regarding predatory lending practices within the industry.
At a press conference, AMLU leadership acknowledged the growing public interest in money lending services and vowed to improve the health of its operations.
Recently, President Museveni expressed concern over unethical practices by some money lenders, especially those who exploit borrowers with exorbitant interest rates.
The association agreed with the President's opinion and affirmed its commitment to ethical lending.
Jonan Akandwanaho, the newly elected chair of AMLU, said: “We appreciate the President's concern for the economic well-being of Ugandans and stand ready to provide solutions.”
According to the Uganda Microfinance Regulatory Authority (UMRA), 1,302 licensed money lenders have provided loans to approximately 2.5 million customers by September 2023, with an outstanding loan portfolio of Sh1.2 trillion. .
The sector's contribution to Uganda's economy is significant, providing critical financial support to small businesses, farmers and entrepreneurs who often have limited access to traditional banking services.
AMLU acknowledged that unethical practices persist within the industry despite its positive impact on financial inclusion.
“We recognize that some individuals within our sector may not be held to the highest ethical standards. We are proactively addressing these concerns internally,” Akandwanaho said. Ta.
To address these issues, the association has outlined a series of proposals aimed at promoting accountability and ethical behavior within the industry.
A key part of this will be strengthening our partnership with UMRA to crack down on unlicensed operators.
“This cooperation will identify violators and strengthen the legitimacy of licensed lenders,” Akandwanaho explained.
AMLU also plans to hold regular meetings with UMRA to enforce minimum ethical standards.
They provide UMRA with a platform for skills development and awareness programs aimed at promoting good lending practices across the sector.
“Our goal is to work closely with regulators and stakeholders to ensure our services continue to support economic growth while protecting the interests of our borrowers,” Akandwanaho said. emphasized.
AMLU Founding Chairman Ben Kabuya highlighted the important role that lenders play in providing financial access to millions of Ugandans.
“As we move forward, we remain dedicated to our mission of financial inclusion while continually improving our practices to meet the evolving needs of our nation,” Kabuya said.
The association reiterated its commitment to fostering a responsible lending environment through dialogue and cooperation with regulators and government, with the aim of securing Uganda's financial future.
