BRAC Uganda Microfinance is now a bank after 11 years of serving Ugandans as a Microfinance. BRAC is one of the largest microfinance providers in Uganda that has been transformed into a Tier 2 Credit Institution (CI) to broaden the range of financial services it provides to low-income communities.
First Deputy Prime Minister General Moses Ali represented President Yoweri Museveni late April this year and was joined by Evelyn Anite, the State Minister of Finance for Investment and Privatization at the inauguration ceremony held at the bank’s Kabuusu branch.
BRAC Uganda Microfinance Ltd (BRAC Uganda) was founded in 2008 to provides microfinance services to improve the lives of low-income people in Uganda. BRAC Uganda is part of BRAC International, a foundation based in the Netherlands which operates in 11 countries in Asia, Africa and the Caribbean.
The now Bank institution is growing its footprint to 163 branches across 84 districts with more than 200,000 clients as part of its commitment to ensuring greater financial inclusion, especially for marginalized women in rural and low-income communities.
BRAC has been pursuing a change in its regulatory status that would allow it to expand the scope of its financial services. The transformation is expected to enable BRAC Uganda Bank Ltd to offer savings accounts, money transfer, insurance and other financial services in addition to its existing credit products to the people of Uganda.
“BRAC has a specific focus on women, youth and rural population. I am very much pleased that these are also the three priority areas of the comprehensive strategy that the Ugandan Government developed for financial inclusion,” stated Moses Ali.
Shameran Abed, the Senior Director of BRAC’s Microfinance and Ultra-Poor Graduation programme commented that the increased range of financial services will enhance self-employment opportunities, build financial resilience, and better harness their clients’ entrepreneurial spirit among others.
“We are honored and excited to have this opportunity to strengthen our bonds with Uganda and contribute further in improving access to safe, reliable and fit-for-purpose financial services through our new banking operation.”
“BRAC believes that given the right opportunities and tools, people living in poverty can turnaround their own lives. BRAC Uganda Bank will remain true to our core mission of enabling communities, particularly women living in poverty in rural, urban and hard to reach areas so that they can realize their potential,” he added.
Brac Uganda Bank Limited (BUBL) chief executive officer Jimmy Adiga said the transition from a Tier 4 credit only NGO to a Tier 2 CI will allow BRAC to drive more impactful financial inclusion at an even greater scale.
“Our clients can now have the confidence and trust of saving at a formal institution, a critical component that ensures resilience for low-income households in times of social or economic shocks.”
As a part of the transformation process, BRAC has partnered with three mission-aligned investors – DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, the German development finance institution, Equator Capital Partners, the experienced fund manager investing in financial inclusion, and Triple Jump, the Dutch impact-focused investment-manager advising the ASN Microkredietpool fund.
The equity partners each, bring unique value and expertise to BUBL and are excited to join BRAC in providing affordable and responsible financial services to the people of Uganda.
BRAC has hosted day-long events with its staff, partners, clients, regulators and other stakeholders to celebrate this hallmark achievement and a launch event with the broader community of stakeholders took place at Kampala Serena Hotel following the ceremonial launching of the bank.
The event was attended by Haruna Kasolo Kyeyune, the Minister of State for Microfinance and Dr. Louis Kasekende, the Deputy Governor of the Bank of Uganda.