The ability to access credit in various countries is not often a topic of discussion. This issue usually tends to fall by the wayside when discussing various problems of countries around the world, despite the issue being of great importance when it comes to both the financial literacy and economic growth of a country.
In Uganda, credit access is not a pressing issue. The country is among the top six nations in Africa in regards to accessing credit. Credit access in Uganda is very important to sustaining economic growth and helping to alleviate poverty in the country. The increase in financial services for poorer communities can have a huge impact on eliminating poverty in those areas, which will improve the economy of the whole country and help improve financial literacy among the citizens.
Uganda has 24 banks, four credit institutions, a Social Security Fund, 60 private retirement benefit schemes and seven mobile money providers throughout the country. The abundance of credit access in Uganda has helped improve the economic status of the country as a whole, especially for those in impoverished neighborhoods. Financial services are immensely important when trying to improve the economy of a country, and that is what is happening in Uganda. The accessibility of financial services to poor citizens allow them to save money and help both them and the country grow economically.
The security of financial institutions allows the impoverished citizens of the country to feel safe entrusting their money to a bank and allows them to save more money than they would without a financial institution so easily accessible to them. This allows both citizens and businesses to balance their income and manage any financial shocks they may experience in the future.
Uganda is slowly but surely improving economically. The country saw a GDP growth of 4.8 percent in 2016, which is an improvement for the country as a whole. Although not as high as some neighboring countries, it is still progress for Uganda, and hopefully, it will continue to grow.
Currently, the most popular form of credit access in Uganda is mobile banking, with more than seven million users. This is because of the increased popularity and use of technology in the country. More than half of Ugandans now have access to a financial institution. This is a vast increase from 28 percent in 2009. This shows that both financial literacy and economic stability are increasing in Uganda.
As the economy grows, so does the financial literacy of the country. The accessibility of financial institutions makes it easier for citizens to become more financially literate and manage their money better than they have previously. This will continue to benefit both the citizens and the country in the long run, as Uganda become more economically stable because of the number of easily accessible financial institutions that are now operating in the country.
– Simone Williams