URSB & FSD Uganda MoU
Providing easy access to credit as capital for MSMEs, improved financial inclusion remains core to this cooperation
Kampala, Uganda; 08th November, 2019; URSB and Financial Sector Deepening Uganda have today signed a Memorandum of Understanding (MoU) that aims at fostering partnership in mutual areas of interest, such as positioning the Security Interest in Movable Property Registry System (SIMPO) to Uganda’s
undercapitalized small businesses and rural communities including small holder farmers. The MoU will provide a framework of cooperation and understanding between the two organizations on this and other ventures.
Under the partnership, URSB and FSDU will focus on facilitating stakeholder engagements towards making the Electronic Security Interest in Movable Property Registry System more sustainable in meeting the needs of the different stakeholders especially the micro, small & medium sized enterprises that grapple with lack of access to loan facilities from financial institutions.
SIMPO whose tagline is ‘easier borrowing, safer lending’ enables businesses to acquire capital for their growth using their movable property. It simply is a public database that provides information on registered encumbrances in tangible and intangible movable property such as electronics, livestock, crops, motor vehicles, motor cycles, trailers, machinery, intellectual property rights and stock/inventory. It also provides information on the parties to the security interest or loan agreement such as the secured creditor, debtor and owner of the movable asset pledged as collateral.
Speaking at the signing, Bemanya Twebaze, the Registrar General, asserted that partnerships like this one will help ease financial access for the previously underserved businesses. “With this MoU, we are looking forward to deepening the impact of our registrations experience in positioning a service that can benefit MSMEs in their efforts to access affordable credit, grow their portfolio, increase their production capacity and create employment while growing our economy,” he said
Rashmi Pillai, FSDU Executive Director said partnerships of this kind are crucial to removing bottlenecks in the financial sector and promoting equitable growth in Uganda.
“FSD Uganda has worked closely with the Uganda Registration Services Bureau (URSB) for the past two years, supporting the establishment of a legal and regulatory framework that enables financial service providers to issue credit against moveable collateral. In this new phase of our partnership, FSD Uganda will provide technical assistance to URSB to promote broad acceptance of moveable collateral among formal financial services providers. We anticipate that this will increase credit flow to micro and small businesses, that need it the most and enable economic growth.” she said
The partnership will also see the organizations collaborate to develop a sustainable business case for the Electronic Security Interest in Movable Property Registry System and ensure it can meet the needs of groups who continue to face hurdles in accessing formal credit.
Uganda Registration Services Bureau (URSB) is an autonomous statutory body established by Chapter 210 Laws of Uganda. It is responsible for registration of business names, companies and legal documents, Intellectual Property Rights (such as patents, trademarks, industrial designs and copyright) and Civil Registration (registration of all marriages and conducts civil marriages). The Bureau also handles Insolvency matters.
With effect from 17th September, 2019, the current manual Chattels Securities Register at URSB was replaced by the online Security Interest in Movable Property Registry System (SIMPO). SIMPO is a fully electronic notice based Registry and provides services such as registration, search and amendment of notices of security interests and judgement liens. Similarly, all interests (caveats) on motor vehicles, trailers and engineering plants which are currently registered at Uganda Revenue Authority on behalf of the Chief Licensing Officer will from September 19, 2019 be registered on SIMPO.
About Financial Sector Deepening Uganda
Financial Sector Deepening Uganda (FSD Uganda) is a company limited by guarantee promoting greater access to financial services in Uganda. FSD Uganda seeks to develop a more inclusive financial sector with a focus on low-income individuals (particularly women, youth and forcibly displaced people) and micro, small and medium enterprises (MSMEs). With support from DFID, FSD Uganda facilitates product innovation, conducts research, helps to promote and improve policy, laws and regulation that shape the financial sector in Uganda.
For more information, please contact:
Ag. Head Public Relations & Corporate Affairs
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