Kisamba-Mugerwa becomes board chairman of MSC

Mar 02, 2018

“We shall work hard to instill a saving culture in our clients. We shall also work with the ministry (finance) to breathe life into the company’s resource,” he said.

Dr. Wilberforce Kisamba-Mugerwa, the Chairperson of the National Planning Authority (NPA), has taken on a new mantle as the chairperson of the Microfinance Support Centre (MSC) board of directors.

He was inaugurated as a board chairperson at a low key ceremony held at MSC new offices in Nakasero, on Wednesday evening. He replaces Justine Bagyenda who has served as MSC board chairperson for the last six years.

In his acceptance speech, Mugerwa said that he will take advantage of the government's political will to support women and youths, the mushrooming savings cooperatives at his disposal to stir development at MSC.

"We shall work hard to instill a saving culture in our clients. We shall also work with the ministry (finance) to breathe life into the company's resource," he said.

Prior to this appointment, Mugerwa held several political positions including Minister for agriculture, animal industry and fisheries and state minister for finance and economic planning.

Other members on the board include Mayanja Gonzaga, the acting commissioner for monitoring and evaluation in the office of the Prime Minister, Ruth Biyinzika Musoke, a member of Private Sector Foundation (PSF).

Kigozi Walusimbi, former director communication at Bank of Uganda and Robert Bariyo Barigye, the assistant of cooperatives development and policy in the Ministry of trade, industry and cooperatives.

They join four other directors whose tenure is still running. These include Albert Odoi, Vincent Semakula, Birungi Korutaro and John Peter Mujuni, the executive director of MSC.

Mujuni in his speech praised the selflessness, determination and the commitment with which the outgoing board worked to lift the company from a near collapse back to its glory.

"The outgoing board had strong commitment to the success of this organization. They introduced very good standards in the industry. They leave a strong legacy," he said.

Bagyenda said that through their five year strategic plan, they were able to revive the company to a level of being a lead provider of affordable microfinance in Uganda.

"We have made remarkable success towards poverty alleviation and wealth creation especially at the grass-root level. We have innovated and developed loan products and services that are customer eccentric," she said.

She noted that under her stewardship, the company clientele grew from 828 in 2010 to 1,947 in 2017. The loan portfolio grew from sh34b to sh67b in 2017.

Bagyenda said that they were also able to introduce Islamic financing to the company's clientele and have been able to fund 39 projects to a tune of sh14b.

However, she stated that they encountered budgetary constraints in supporting the clients.

"MSC needs a strong capital base in order to be more effective and efficient in service delivery and to remain relevant as a competitive player in the financial sector.

Kyeyune Haruna Kasolo, the minister of state for microfinance said that government has decided to recapitalize the company with sh50b to enable it give loans to Ugandans who cannot afford the bank rates.

"Uganda Development Bank is now capitalized. We are embarking on capitalizing MSC. We need to create so many avenues where people can access cheap products so the demand for loans from banking institutions reduces," he said.

"Unless we create an avenue where people can go to access cheap credit we cannot reach the middle income status. That's why government has resolved to capitalize MSC," he added.

He also revealed that government has created the MSC regulatory authority to help monitor the loan recovery process and stated that no savings group will get a loan unless its registered with it.

In 2001, government incorporated MSC under the ministry of finance to fulfill the need for affordable credit in Uganda. Its target clients include SACCOs, Cooperative Unions, Area Cooperative Enterprises, Village Savings and Loans Associations and, Small and Medium Enterprises.

Mugerwa and his team will serve for a renewable three year term.

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