BRAC, one of the largest microfinance providers in Uganda has been transformed into a Tier 2 Credit Institution.
Officiating at the function to launch BRAC Uganda Bank, the first deputy Prime Minister Gen Moses Ali said: “BRAC has a specific focus on women, youth and rural population. I am very much pleased that these are also the three priority areas of the comprehensive strategy that the Ugandan Government developed for financial inclusion.”
Shameran Abed, the senior director of BRAC’s Microfinance and Ultra-Poor Graduation programme said they were honoured and excited to have this opportunity to strengthen ties with Uganda and contribute further in improving access to safe, reliable and fit-for-purpose financial services through their new banking operation.
“BRAC believes that given the right opportunities and tools, people living in poverty can turnaround their own lives. BRAC Uganda Bank will remain true to our core mission of enabling communities, particularly women living in poverty in rural, urban and hard to reach areas so that they can realize their potential,” he said.
Jimmy Adiga, the chief exceutive officer of Brac Uganda Bank said their clients can now have the confidence and trust of saving at a formal institution, a critical component that ensures resilience for low-income households in times of social or economic shocks.
As a part of the transformation process, BRAC has partnered with three mission-aligned investors – DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, the German development finance institution, Equator Capital Partners, the experienced fund manager investing in financial inclusion, and Triple Jump, the Dutch impact-focused investment-manager advising the ASN Microkredietpool fund.
BRAC started its Microfinance programme in Uganda in 2006, growing its footprint to 163 branches across 84 districts with more than 200,000 clients.
The transformation will enable BRAC Uganda Bank Ltd to offer savings accounts, money transfer, insurance and other financial services in addition to its existing credit products to the people of Uganda.
The equity partners each bring unique value and expertise to BUBL and are excited to join BRAC in providing affordable and responsible financial services to the people of Uganda.
BRAC was ranked the number 1 NGO in the world in 2019, for the fourth year in a row, by the Geneva-based organization, NGO Advisor.
BRAC’s first international expansion was into Afghanistan in 2002 and it currently has affiliates in 13 countries with a focus on Asia and Africa.
In Uganda, BRAC has been working since 2006 to advance women’s empowerment, provide education for children and adolescent girls, address gender-based violence issues, improve livelihoods and skills for smallholder farmers, and support people to lift themselves out of ultra-poverty through its NGO entity.