The Association of Money Lenders of Uganda (AMLU) supports President Yoweri Museveni's recent pledge to crack down on exploitative practices by unscrupulous money lenders in the lending business.
Speaking at the Southern and Eastern Africa Chief Justice Forum meeting in Kampala on Tuesday, Museveni accused money lenders of charging inhumane interest rates even though inflation is very low.
“Inflation in Uganda is very low, it’s only 3% and even lower, but some people are charging 240% in an economy with only 2% inflation. Why would you do that? ? asked Mr Museveni.
Today, the Uganda Moneylenders Association acknowledged the President's concerns and expressed its intention to work with the authorities to find solutions to protect Ugandans from unethical lending practices.
“President Yoweri Kaguta Museveni has recently expressed concern about exploitative moneylenders, and we agree with him. We appreciate his concern for the economic well-being of Ugandans and will provide solutions. We are ready,” AMLU said in a statement.
“As an association, we recognize that there are individuals within our sector whose practices are not in line with the highest standards of ethical lending. We are proactively addressing these concerns internally. “We are committed to working with all stakeholders to improve the overall health of our industry.”
The association's move to support Mr Museveni's “war” on vice is aimed at curbing the financial exploitation that has left many Ugandans in debt, with the potential for stronger regulation and a shift towards accountability in the sector. It suggests sex.
AMLU said it will strengthen its collaboration with the Uganda Microfinance Regulatory Authority (UMRA) to jointly address the issue of unlicensed operators in the moneylending industry. The association said the cooperation will identify violators and strengthen the legitimacy of licensed money lenders.
It also said it will hold regular dialogue sessions with UMRA and focus on enforcing minimum ethical standards within the sub-sector through peer mechanisms and skills to promote good lending practices across the sub-sector. It added that it would provide UMRA with a platform for development and awareness programs. -sector.
AMLU further stated that it will work with all stakeholders to raise public awareness about proper conduct in the moneylending industry.
It said these sessions will educate both lenders and borrowers and promote a more informed and responsible financial ecosystem.
Jonan Akandwanaho, AMLU’s new chairman-elect, said: “We are committed to fostering a responsible and ethical lending environment in Uganda. Our goal is to work closely with regulators and stakeholders. Together, we will ensure our services continue to support economic growth while protecting the interests of our borrowers.”
Founding Chairman and Advisory Council member Ben Kabuya said the moneylending sector had helped provide financial access to millions of Ugandans over the years.
“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,” he said.
The Uganda Moneylenders Association is committed to serving Ugandans responsibly through constructive dialogue and cooperation with regulatory bodies and government to address any concerns, improve industry standards and safeguard the country's financial future. He said he could continue to provide it.
