Financial Inclusion Africa

LIVE: IMF African Department Director Abebe Aemro Selassie presents the latest economic outlook for sub-Saharan Africa. http://imf.org/AfricaREO

https://youtu.be/5sGa0A0Z-NE

www.imf.org

During the 2017 Alliance for Financial Inclusion Global Policy Forum, I made a case (and I believe it was a serious one) for Youth Finance...countries with huge young populations would definitely benefit.

Bank of Uganda clarifies on the Diamond Trust Bank Uganda court ruling.


STATEMENT REGARDING FINANCIAL INSTITUTIONS
BUSINESS REGULATED BY BANK OF UGANDA UNDER THE FINANCIAL INSTITUTIONS ACT, 2004 AS AMENDED IN 2016

In response to the recent media debates and discussions of issues related to the regulation and supervision of financial institutions and what amounts to conduct of financial institutions business in Uganda, Bank of Uganda (BoU) wishes to state as follows:

Bank of Uganda is the regulator and supervisor of financial institutions and financial institutions business in Uganda. The mandate to regulate and supervise financial institutions and financial institutions business is derived from the Constitution of the Republic of Uganda, the Bank of Uganda Act, 2000 and the Financial Institutions Act, 2004 as amended (FIA, 2004).

For the purposes of this statement, the regulation and supervision of micro finance deposit-taking institutions is not addressed as these are covered under the Micro Finance Deposit-taking Institutions Act, 2003.

A. What is a Financial Institution?

A ‘financial institution’ is a company licensed to carry on or conduct financial institutions business in Uganda. Bank of Uganda is, by law, given powers to issue a regulation to classify financial services providers as financial institutions where their activities amount to financial institutions business.

B. What is ‘Financial Institutions Business’?

‘Financial Institutions business’ is broadly defined in Section 3 of the FIA, 2004 to include, acceptance of deposits; issuance of deposit substitutes; lending or extending money held on deposit or any part of that money by way of consumer and mortgage credit; for financing of commercial transactions that can be recovered by foreclosure or other means of amounts so lent, advanced or extended- among other activities.

The FIA, 2004 permits BoU to categorise what other financial services constitute financial institutions business.

C. ‘Acceptance of deposits’ and/or ‘deposit taking activity’ for Lending

‘Acceptance of deposits’ and/or ‘deposit taking activity’ occurs when a natural person or legal entity collects or accepts money from the public or advertises itself as a safe keeper of money or solicits for money from the public with a promise that it will be repaid on demand or after a fixed period with or without interest or a premium. Only financial institutions can accept deposits from the public or advertise for safe keeping of money or deposits.

The lending or extension of credit or loans or the financing of commercial transactions using money obtained from deposits or safekeeping in Uganda can only be done by an entity licensed by BoU in a manner prescribed by the FIA, 2004 as amended.

D. Financial Services that are not Supervised or Regulated by Bank of Uganda

Bank of Uganda does not regulate extension of loans/credit or the financing of commercial transactions that are funded;

1. Using funds owned privately by individuals, corporates, private equity funds local or foreign;
2. Using funds of members of small member-based collective savings or lending organizations that do not advertise themselves as safe keepers of money or solicit for funds from the public in Uganda;

3. Using funds obtained from foreign banks that do not take deposits from the public in Uganda;

4. Using funds of International, Regional or Local Development Finance Institutions whether such funds are advanced and administered directly by those institutions or through financial institutions in Uganda.

5. Using funds of Development Institutions, be they multilateral or bilateral, whether such funds are advanced and administered directly by these institutions or through financial institutions in Uganda.

E. Agent Banking

Agent banking that is regulated under the FIA, 2004 is defined under Regulation 4 of the Financial Institutions (Agent Banking) Regulations, 2017 to mean the conduct of financial institution business by a person contracted by a financial institution to deliver such services on its behalf as approved by BoU. Agency relationships outside the definition in the Financial Institutions (Agent Banking) Regulations do not require authorisation from BoU.

Financial institutions licensed to conduct financial institutions business in Uganda, may apply to the BoU for approval to conduct Agent Banking under the Agent Banking Regulations.

An entity that is not licensed as a financial institution in Uganda is not eligible to apply to the BoU to conduct Agent Banking.

International and Regional Development Organizations, Foreign Banks, and other Lenders both local and foreign who may choose to appoint any entity or person to act as their agent in Uganda under general contract law do not require approval from BoU. Such agencies do not fall within regulated agency under the FIA, 2004 and do not require a BoU license.

F. Territorial Jurisdiction

Foreign banks lending deposits held in jurisdictions other than Uganda are regulated and supervised by their home authorities. It is not mandatory for a foreign bank to establish a representative office in Uganda in order to conduct lending or non-deposit-taking activity.

Bank of Uganda’s regulatory and supervisory powers only apply to financial institution business conducted by BoU licensed entities in or outside Uganda or activity which should be licensed as such in Uganda. These powers do not extend to activities of foreign banks outside Uganda licensed by foreign regulators.



Emmanuel Tumusiime-Mutebile (Prof.)
Governor
Wednesday, October 14, 2020

Know Your Central Bank: Exchange Rate Management...

Spring Meetings will be virtual due to Coronavirus - IMF, World Bank Bosses

Mrs. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), and Mr. David Malpass, President of the World Bank Group, today issued the following statement:
“Like everyone else around the world, we have been deeply concerned by the evolving situation of the Coronavirus and the human tragedy surrounding it. Given growing health concerns related to the virus, the Management of the IMF and World Bank Group and their Executive Boards have agreed to implement a joint plan to adapt the 2020 IMF-World Bank Spring Meetings to a virtual format. Our goal is to serve our membership effectively while ensuring the health and safety of Spring Meetings participants and staff.
“We remain fully committed to maintaining a productive dialogue with our stakeholders and will leverage our IT-related and virtual connection capabilities to the fullest to hold our essential policy consultations with the membership. We will also continue to share IMF and World Bank analyses. With this adapted format, we are confident that our member countries will be able to effectively engage on pressing global economic issues at these Spring Meetings.”

Financial Inclusion Africa updated their website address.

Fake news...

He explains why Africa is poor...YOUR THOUGHTS PLEASE?

Why Africa is Poor This this video clip, Brenthurst Foundation head Dr Greg Mills speaks on his new book 'Why Africa is Poor'.

3 Reasons Why Africans are Poor Hi friends, I make this video to share with you the 3 Reasons Why Africans are Poor. Watch to find your way out. I Love You.

MYFINANCE TIP: Track your money
Recording your income and expenditure is the basis for tracking your money. After all knowing where your money goes is crucial to personal financial management. You can of course use a money tracker, but in case you don’t have one, a manual method can suffice. To track your money, start by categorizing your expenses in terms of domestic, transport, food, medical, school fees, insurance, savings, utilities, and debt/loan. Now subtract all your expenses from your income. If the result is positive, that is a sign that you are living within your means, but a negative result might mean that you need to reduce your expenses. How? Perhaps by significantly minimizing the list of wants and giving priority to needs.
WHAT WOULD YOU ADD? Please share your financial wisdom

MY FINANCE TIP: The first step to creating a budget
To successfully create a budget, begin by writing down all your expenses on a daily, weekly, and monthly basis. Then record all the money you receive. This first step is important because, “You must know how much is coming in and exactly how much is going out each month,” says Erin Lowry, author of Broke Millennial. Be honest with yourself when you are recording the money you are earning and the amount you are spending. WHAT WOULD YOU ADD? Please share your financial wisdom

MYFINANCE TIP: LEARN HOW TO BUDGET
You have perhaps heard about the word ‘budget’ and you wondered how individuals can come up with budget to manage their personal finances. Is this something difficult to do? Of course it is challenging, but not hard to do; and, centrally to general belief, budgeting gives you freedom to do things you enjoy and the ability to control your money.
Simply, budgeting is putting in place a plan for your money so you have a better idea of how you are spending it every after a certain period. The period could be weekly, bi-weekly, monthly or annually.
With a good budget you can plan for your all your financial needs and obligations, including saving, investing, spending, and charity. You do this by apportioning a portion your total income, accordingly.
WHAT WOULD YOU ADD? Please share your financial wisdom

MYFINANCE TIP: BUDGET IN A SIMPLE WAY
Budgeting in a simple way can be done in several ways. One of which is using percentages of your income to cover your set expenses, savings amounts, and your spending money. Subsequently, you have to track all the money you spend. You should track your money daily so that you avoid overspending. The first few weeks or months will be challenging because budgeting entails a great deal of discipline. If you are married, budgeting meetings with your spouse can help lessen the burden of handling money.
WHAT WOULD YOU ADD? Please share your financial wisdom

MYFINANCE TIP: THERE IS POWER IN NUMBERS

Small savings in a small group with friends may give you the financial breakthrough you desire. Individually, you may be emotionally attached to a product that does not meet your financial goals. You have to give priority to bigger and better financial ideas as a group.

ANYTHING YOU WOULD LIKE TO ADD. PLEASE SHARE YOUR FINANCIAL WISDOM.
finance

MYFINANCE TIP: KEEP YOUR SAVINGS SAFE
No matter where you save, make sure that your money is safe
In Uganda, licensed financial institutions, such as commercial banks and microfinance deposit taking institutions, all savings are insured up to UGX10, 000,000. If the institution closes, you will be paid back up to UGX10, 000,000. If you had saved more than UGX10, 000,000 you may get back some or all of the rest of your money when the institution has paid off its debts. Licensed institutions will not easily close down as they are closely monitored by the Bank of Uganda to make sure they are reliable. If you plan to keep your savings in a SACCO, it is wise to ask other members what their experience has been before you start saving with it. You should also make sure that you know and trust the SACCO officers who take care of your money. Make sure you trust the other members of the group and ask for regular accountability to reduce the risk that someone walks away with your money. In addition, check that the group’s money is kept in a safe place where it cannot easily be stolen.
WHAT WOULD YOU ADD? Please share your financial wisdom

MYFINANCE TIP: DON'T PUT ALL YOUR EGS IN ONE BASKET
Invest in different projects in order to spread the risk or earn from different invest opportunities: “Don’t’ put all your eggs in one basket” because if the basket breaks you could lose everything. It is a good idea to balance high and low risk investments or savings – this is like mixed cropping: if beans don’t germinate, then the maize could.
WHAT WOULD YOU ADD? Please share your financial wisdom

Myfinance Tip: Invest to employ yourself
Smart investment can transform you into an employer and enable you to earn more income. You can invest your money in activities such as poultry farming, growing vegetables, running your own grocery shop or building apartments for rent.
WHAT WOULD YOU ADD? Please share your financial wisdom

My finance Tip: For those living in Uganda, if you can, save and borrow from financial institutions which are regulated by the Bank of Uganda
There are three types of institutions which are regulated and supervised by the Bank of Uganda: Commercial Banks (large financial institutions that offer loans and savings), Credit Institutions (similar to commercial banks but smaller) and Micro Finance Deposit-Taking Institutions (MDIs – microfinance institutions licensed by the Bank of Uganda to collect savings from the public). The advantages of saving with, and borrowing from, these institutions are:
• The Bank of Uganda supervises those institutions to make sure that you money is safe with them
• All savings in financial institutions regulated by the Bank of Uganda are insured up to UGX10 million per account
• The Bank of Uganda developed financial consumer protection guidelines to ensure that all regulated financial institutions treat their customers fairly.
• The Bank of Uganda has put in place a financial consumer empowerment section to address complaints customers might have against their respective financial institutions.
WHAT WOULD YOU ADD? Please share your financial wisdom

Prohibition of Merchant surcharge and the fixing of minimum/maximum transaction amounts on electronic Payment Card
WHAT WOULD YOU ADD? Please share your financial wisdom

My Finance; Tip #3: Write a will to protect your investments
Write a will to ensure that people you want will inherit your money and property when you die. Remember to update your will whenever you acquire new property or produce children, get or lose a partner, sell or give away property. Your family and dependants should know where to find your will.
WHAT WOULD YOU ADD? Please share your financial wisdom

My Finance; Tip #2: The Significance of Money
"WHEN I WAS YOUNG I THOUGHT THAT MONEY WAS THE MOST IMPORTANT IN LIFE; NOW THAT I AM OLD I KNOW THAT IT IS" - OSCAR WILDE
WHAT WOULD YOU ADD? Please share your financial wisdom