URSB board chair urges western Uganda businesses to formalise for easier access to loans
Business owners in western Uganda have been encouraged to formalise their businesses and embrace the use of movable property as collateral in order to improve access to credit and grow their enterprises.
Speaking during the Security Interest in Movable Property (SIMPO) workshop held at Silverback Hotel in Mbarara, the Chairman of the Board, Rt. Hon. Ambassador Francis K. Butagira, said the financing sector is changing from the old system that relied mainly on land titles and buildings.
“Getting credit in the olden days was quite hard, but that concept is becoming outdated,” Amb. Butagira said. “URSB came up with the concept of using movable property as collateral, and the law is now in place. It is now the modern trend.”
He explained that under the law, individuals and businesses can use movable assets such as vehicles, livestock, machinery, stock and other business equipment to secure loans from banks and other financial institutions.
Amb. Butagira noted that many Ugandans still operate informal businesses, which limits their chances of accessing formal financial services.
“Most of our economy is engaged in the informal sector, so we are trying to formalise businesses and bring them into a bankable area,” he said.
He urged entrepreneurs in Mbarara and the surrounding areas to embrace the system, saying URSB is moving across the country to sensitise people about the law and available opportunities.
