AFI member institution the Bank of Uganda (BOU) recently outlined its plan to scale up financial inclusion to include at least 70 percent of the nation’s adult population (16 years+) by 2017 through its renewed commitments to the Maya Declaration in line with the Sasana Accord. According to a FinScope Survey in 2013, currently 46 percent of the adult population remain financially excluded in Uganda.

These efforts to reduce financial exclusion fall in line with BOU’s Strategic Plan 2012-2017, the Government of Uganda’s National Development Plan 2010/11-2014/15 and the Government’s Vision 2040.

The specific sub-targets under the declaration look to grow the percentage of bank accounts to the adult population from 32.8 percent in 2013 to 39.5 percent in 2017, and increase the ratio of credit/GDP from 15.3 percent in 2013 to 20 percent by 2017.

BOU will take specific action to achieve these targets, including:

• Increase the level of financial literacy through the continued implementation of the Strategy for Financial Literacy in Uganda;
• Fast track the finalization of the regulatory frameworks for agent banking and Tier IV financial institutions such as Savings and Credit Cooperative Organizations (SACCOs), Microfinance Institutions (MFIs), and Self-Help Groups (SHGs);
• Support the use of innovative technologies based on mobile money platforms to increase access to financial services to the unbanked;
• Reduce barriers to access through discussion with financial institutions based on barriers to access identified in the demand side survey (FinScope III Survey 2013) such as costs related to opening an account;
• Enhance trust and transparency between financial institutions and clients by strengthening financial consumer protection on the regulatory level and promoting public awareness of consumer rights and responsibilities;
• Collaborate with government on the national identity system to enhance Know Your Customer (KYC) processes in financial institutions;
• Promote public-private partnerships in the transformation of rural financial services;
• Expand the coverage of the Credit Reference Bureau to include all financial institutions and customers;
• Inform policy by tracking progress on a bi-annual basis using AFI’s core set of Financial Inclusion Indicators.

The announcement of these new commitments to the Maya Declaration comes after BOU’s previous commitment in 2011 to develop and implement a financial inclusion strategy by 2013, and once again highlights the Bank’s dedication to the cause of poverty reduction in Uganda through enhanced financial inclusion.