Equity Bank Uganda has been recognised and awarded for promoting financial education and inclusion by the Uganda Financial Literacy Association (UFLA), an umbrella body which unites stakeholders in the financial literacy field. 

The recognition of Equity’s contribution to advancing the national financial literacy agenda was made at the UFLA first anniversary celebration at Kampala Serena Hotel. 

Speaking at the event, Equity Bank Executive Director Elizabeth Mwerinde Kasedde said the Bank has been, and (is) dedicated to offering integrated financial services that socially and economically empower consumers, businesses, and communities. 

“Equity Bank targets the unbanked, financially excluded such as women, youth and refugees, and so far, we have covered up to 67 percent rural and 32 percent urban. 

The bank has in the last two years trained 126,107 youth, women, and refugees in financial literacy and entrepreneurship education, of which 58 percent are female, 77 percent are youth and 30 percent are refugees.

According to Mwerinde, the impact of financial literacy and entrepreneurship education has been enormous.  “We have witnessed increased access to affordable unsecured credit. Up to Shs89 billion has been disbursed in the last three years including the #Covid-19 period. 

The bank has also created 99,000 jobs and expanded 6,420 Micro enterprises from micro-level (Capital size below Shs10 million) to small size (capital size above Shs10 million) and has improved longevity of the enterprises with up to 82% of the enterprises in operation for over 12 months.

Since the start of the Bank’s effort in promoting financial inclusion in 2019, 87% of the unbanked have reported improved livelihood and more individuals are joining village Sacco’s and associations “because there is more opportunity to access formal financial services cheaply,” said, Mwerinde.

“We are honored to receive this award. We believe that empowering individuals with financial knowledge is essential for fostering economic growth and improving livelihoods,” Mwerinde said on receiving the award. 

The recognition also reaffirms the bank’s commitment to ensuring that people have the opportunity to achieve financial independence and security. 

Equity’s Financial Literacy trainer Phillip Kiryowa was also honoured with the Financial Literacy Trainer Award. 

The event brought together key players and dignitaries in the financial sector, including the Bank of Uganda, the Ministry of Finance, Bank Executives, the Uganda Bankers Institute and members of UFLA.

The theme for the event, “Leveraging Financial Literacy for Uganda’s Social Economic Development,” aligns directly with Equity’s vision and mission to champion the socio-economic prosperity of the people of Africa. 

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Equity Bank has pledged to continue its strong collaboration with the Church of Uganda and other religious groups for mutual benefit.

Speaking at the Uganda Martyrs celebrations in Namugongo on Monday, Equity Bank Executive Director Elizabeth Mwerinde Kasedde expressed gratitude for the Church’s support and affirmed the bank’s commitment to working with the Church at all levels.

The Church of Uganda Archbishop, Dr. Stephen Kaziimba Mugalu, presented a symbolic cheque to mark the completion of the credit repayment advanced by the bank for the construction of Janani Luwum Church House. Archbishop Kaziimba praised the strong relationship with Equity Bank and encouraged Christians to embrace the bank’s products.

“I want to announce here that the Church House is now fully owned by the Church of Uganda. Thank you Equity Bank for supporting us, ”  said Archbishop Kaziimba.

Last month, Equity Bank donated UGX 30 million for the Martyrs Day celebrations and sponsored the inaugural national Uganda Martyrs Choir competition.

Equity Bank supported the Church of Uganda by providing a mortgage covering 70 percent of the construction costs for Janani Luwum Church House, with the Church contributing the remaining 30 percent. The Church borrowed USD 17 million from Equity Bank for the project, which became fully operational in 2015.

“ This was a dream that the church had cherished for close to 50 years.  I am glad that Equity Bank took the bold step to support the church realize this dream,” said Mwerinde.

Mwerinde invited other dioceses to adopt Equity Bank’s development model to improve their followers’ livelihoods. She emphasized the bank’s mission to empower communities economically and socially through financial services, helping individual Christians achieve their personal dreams.

“If we can realize a dream of $17 million (UGX65 billion) together, why can’t we help our followers and our members  in our parishes also realize their dreams?  Equity bank is here to help the church give dignity to its followers through extending financial services that economically and socially empower communities,” explained Mwerinde.

The Janani Luwum Church House project, originally planned in 1966, was only realized through the partnership with Equity Bank in 2015, contributing to the Church’s mission and clergy pensions.

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The Ministry of Finance Permanent Secretary, Ramathan Ggoobi, has revealed that the government is doing its best to ensure that the huge public debt does not affect the country’s economic growth.

Speaking in an interview on Thursday, Mr Ggoobi, who is also the Secretary to the Treasury, said economic growth is key to sustaining debt.

“The fast way of sustaining debt is to make sure the economy grows. Some countries like Japan have debt bigger than their GDP,” he said.

“In Uganda, we are debating the debt being 40% of the GDP but I want to assure you that fiscal consolidation is on. Those that are in charge of the fiscal and monetary policy, we are coordinating to make sure that the debt doesn’t affect the economy,” he added.

Uganda’s public debt has risen to Shs96.1 trillion ($25.3 billion or 52 percent of GDP) as of June 2023, according to the Auditor General’s report released recently.

Of this Shs44.6 trillion is domestic while Shs52.8 trillion is from foreign sources. This amount excludes the Shs7 trillion worth of loans that was later approved by Parliament. Each of the 45 million Ugandans is now indebted to the tune of Shs2.5 million.

Rising public debt coupled with growing debt servicing costs, stagnating domestic tax revenues, and declining export revenues are putting Uganda in debt distress and at greater risk of debt crisis.

Uganda faces a critical financial challenge as interest payments on loans now consume a significant portion of the budget and domestic revenues. According to the December 2023 report from the Bank of Uganda, escalating debt servicing costs are straining tax revenue collection, with Shs32 out of every Shs100 collected going towards debt service

But Ggoobi on Thursday assured the country that the economy has recovered from the shocks that affected us since the Covid-19 pandemic time.

He said Uganda has withstood all these shocks including high inflation and interest rates, ebola etc and that the economy is projected to grow at 6% this FY 2023/24.

The PS noted that the size of the economy has expanded to about $53 billion, inflation is under control, export receipts have increased, more jobs have been created and foreign direct investments have grown impressively, adding that all this has happened because of good economic management.

According to Ggoobi, government interventions especially in financial inclusion initiatives (PDM, Emyooga, UDB money) etc, slowdown in inflation which has increased aggregate demand especially manufacturing and fast-moving goods, good weather which is driving agriculture and oil and gas sector investments which have brought in big money, including the East African Crude Oil Pipeline (EACOP)

The PSST said all the four shareholders in EACOP have contributed Equity and the government of Uganda has also put additional equity.  He said soon, the final investment decision (FDI) for the Oil Refinery will be announced.

The Bank of Uganda projects that external debt servicing will account for 35 percent of GDP in 2024/2025. However, this is not unique to Uganda.

According to a recent International Debt Report by the World Bank, “record debt levels coupled with high-interest rates have set many countries on a path to crisis”. The report further notes that “every quarter that interest rates stay high, results in developing countries becoming distressed – and facing the tough choice of servicing their debts or investing in public health, education or infrastructure”.

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Uganda Development Bank, the country’s national Development Finance Institution, has been named the Regional Bank of the Year – East Africa at the Annual African Banker Awards.

Now in its 18th edition, the prestigious African Banker Awards celebrate the achievements of individuals and institutions that have contributed significantly to the growth and development of Africa’s banking sector over the past year. This year’s awards ceremony in particular saw Development Finance Institutions (DFIs) triumph.

 They emerged as the stars of the show in both institutional and individual recognition categories, underscoring their integral role in the African financial ecosystem.

According to the event organizers, the judges awarded UDB ‘Regional Bank of the Year – East Africa’ because it showed leadership in every category required of a hugely progressive development bank, making significant contributions in uplifting the lives of Ugandans whilst weathering extreme external shocks, and extending socially and economically supportive lending that improved institutional reach and performance – yet still put powerful green and sustainability strategies at its heart.

“We are honored to receive this coveted Award, particularly considering the high-caliber recipients who have received it in the past. Being named Regional Bank of the Year – East Africa is a testament to hard work, dedication, and resolve to not only accelerate financial inclusion in the country but also facilitate Uganda’s socio-economic transformation,” Ms Patricia Ojangole, the Managing Director of UDB said at the Award Ceremony that was held in Nairobi, Kenya.

This Award is given to a bank operating either across a specific region or in one country within a region (North, East, South, West, or Central Africa). The winner will have excelled in the banking industry in the region by reaching out to new customer segments, offering innovative products and services, adopting inclusiveness by bringing the unbanked into the banking space, making use of new technologies, and contributing to a stronger financial sector.

Silver Award by the Association of African Development Finance Institutions UDB also received a Silver Award (A+ rating, under the category of Best Performing DFI) for adhering to the strict prudential guidelines of the Association of African Development Finance Institutions (AADFI), which assess operational efficiency, governance systems, development impact, and overall institutional sustainability, amongst African DFIs. UDB was one of only five institutions on the continent rated A+ and above.

“An A+ rating by AADFi reflects the Bank’s commitment to excellence and its dedication to promoting sustainable socio-economic development in Uganda. The Bank has demonstrated its strong commitment to meeting the highest standards of performance. We’re excited for 2024 and beyond, with our endeavors inspired by innovation and our commitment to excellence,” Ms Ojangole said while receiving the Award earlier in the day.

The Association of African Development Finance Institutions (AADFI) Peer Review is a rigorous evaluation process that assesses the performance of African DFIs against the Performance Standards for Green and Inclusive Recovery-oriented Services (PSGRS). UDB was assessed on key areas such as governance, risk management, financial management, and impact assessment, among others.

UDB has embraced a holistic sustainability approach, undergoing a comprehensive review of its operations. The Awards come as an authentication of the Bank’s critical role in enhancing the country’s development agenda in alignment with the government priorities.

“I take this opportunity to thank the government, Board, Management, and staff of UDB for their unwavering commitment towards the growth and success of the Bank,” Ms Ojangole said. 

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