Registrar General rallies entrepreneurs to use movable property for loans
For years, many Ugandans have failed to access loans because they lacked land titles and other traditional forms of collateral. But the Registrar General), Ms. Mercy K. Kainobwisho, says that is now changing.
Speaking during a Security Interest in Movable Property (SIMPO) sensitisation workshop at Silverback Hotel in Mbarara, Ms. Kainobwisho urged entrepreneurs, SACCO leaders, traders and youth groups to take advantage of the government system that allows movable property to be used as security for loans.
She explained that under the SIMPO framework, assets such as farm produce, livestock, phones, laptops, machinery, stock and jewellery can be used to obtain credit from financial institutions.
“Government put the Security Interest in Movable Property in place to enable people access affordable credit using movable property,” she said.
Ms. Kainobwisho noted that the law, introduced in 2019, was designed to help Ugandans who have viable businesses but lack land or buildings to secure financing. She added that Uganda is also among the few African countries allowing intellectual property such as music, books, and innovations to be used as collateral.
URSB has been conducting countrywide sensitisation campaigns and mobile clinics to increase awareness about the registry and other business services. The bureau says the initiative is expected to improve financial inclusion, especially among small businesses, farmers and youth entrepreneurs.
