International Journal of Multidisciplinary Comprehensive Research  |  ISSN: 2583-5289  |  Double-Blind Peer Review  |  Open Access  |  CC BY 4.0

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International Journal of Multidisciplinary Comprehensive Research

ISSN: (Print) | 2583-5289 (Online) | Impact Factor: | Open Access

The microfinance sector in Uganda: Journey, experiences, lessons, and outlook

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Abstract

The purpose of this paper is to explore the microfinance industry to note where it has been, the industry experiences and lessons learned, and the peer into its future. The study adopted a qualitative approach reviewing the extant literature about the subject. The review reveals that the industry evolved from the desire to help poor people access affordable microcredit and transform themselves into economically empowered members of their communities. Consequently, a number of initiatives have been undertaken to develop the industry. This has included targeted legislation and institutional development both globally and in Uganda. The industry experiences indicate that both welfarist and institutionalist objectives of developing the microfinance industry can be pursued with minimal contradiction. However, events pose a mixed bag of results. One the one hand, success stories of microfinance enhancing access to affordable credit, and empowering the poor financially to be more productive, among others, are mentioned. On the other hand, blatant failures at institutional and individual level are noted. Cases of usury, corruption, diversion of funds, confiscation of poor borrowers’ property, a weak credit culture, and politicisation of the industry are noted. Nonetheless, the industry remains promising to the poor given the existing infrastructure. Moving forward, strengthening regulation, increased funding, depoliticisation of the microfinance policy and programmes will refocus the industry to serve better the poor.

How to Cite This Article

Magunda Hilary, Bisherurwa John Christian (2024).

The microfinance sector in Uganda: Journey, experiences, lessons, and outlook

. International Journal of Multidisciplinary Comprehensive Research (IJMCR), 3(1), 99-121. DOI: https://doi.org/10.54660/IJMCR.2024.3.1.99-121

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