Kasaija commends Microfinance Institutions in economic empowerment of Ugandans

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Small loans that are usually provided by Microfinance institutions enable entrepreneurs to start or expand micro, small and medium enterprises while savings help families build assets to finance school fees, improve homes and achieve their goals.

According to Minister for Finance, Planning and Economic Development Matia Kasaija, provision of micro-finance products is making a significant contribution to increasing the number of low-income households with access to financial services as well as the welfare of low income households.

While officiating at the launch of Goldmine Finance Limited Branch at Kabalagala in Kampala recently, Kasaija said that unlike commercial banks that do not care about the welfare of their borrowers as long as they keep financing their loans, Microfinance Institutions can support the businesses of their clients by constantly checking on them since they are usually located near their borrowers.

“Microfinance Institutions can easily support the growth of their clients by constantly visiting them to ascertain how they are performing. Do not wait for your borrower to inform you that they are collapsing or unable to pay back their loans,” he says.

Minister of Finance Matia Kasaija (Centre) cutting a ribbon as State Minister for Kampala city and metropolitan Affairs Kyofatogabye Kabuye (Right) and Allan Tayebwa Managing Director and Founder of Goldmine Finance (Left) look on. This was during the official opening of Goldmine finance Kabalagala branch on Wednesday in Kabalagala Kampala. (Photo by Colleb Mugume)

“If I borrow money, keep checking on me to see if I’m progressing or collapsing. This is very key for microfinance institutions because it gives you an impression to see if they are progressing or unrecoverable and the way forward,” he adds.

If you visit your customers regularly according to Kasaija, it helps you as a financial institution to get an impression whether to extend more money to them or not.

He also emphasizes the need for honesty and integrity while dealing with clients as this gives confidence to clients that their money is in safe hands which encourages them to save more.

“Am also very happy to see young people begin to think as elders by establishing and growing financial institutions starting with very limited capital,” he adds.

Goldmine Financial services limited is an example of Microfinance institutions that started with limited capital as a money lending company but has over the years grown and expanded their product range.

Allan Tayebwa the Managing Director Goldmine Finance Limited says they started with sh2m but have grown to celebrate 13 years of existence with three branches and hoping to open up more branches in the next few years.

“We started with one room but we have now grown to three branches. We have a very young team that is driven by the vision that we carry as an organization and we are all excited at every level of growth that we are able to achieve,” he says.

He says their dream is to have at least ten branches in the next five years, employing hundreds of young people from the current forty employees and serving at least ten thousand customers.

“Our mission is to help businesses and individuals thrive through better financing and advisory services,” he adds.

Ezra Barihamwe, an official from the Microfinance Regulatory Authority the regulator of the Tier4 financial institutions, says that Microfinance Institutions are vital in supporting government agenda of jobs and wealth creation.

“By opening more branches, Goldmine Finance Limited is trying to answer the government agenda of job creation and financial inclusion especially to the low income earners,” he says.

He says that ever since the financial institution was established UMRA has not had cases of complaints from the institution’s clients about the products offered and mistreatment of borrowers an aspect that is vital for the growth of any financial institution since it gives confidence to the clients.