...IMPACT OF RURAL BANKING ON RURAL FARMERS IN UGANDA. CASE STUDY OF KABALE DISTRICT. BY NAMARA MARTHA 10/U/15158/EVE 210006079 A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF STATISTICS AND APPLIED ECONOMICS FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR OF ACTUARIAL SCIENCE DEGREE OF MAKERERE UNIVERSITY. TABLE OF CONTENTS Contents CHAPTER ONE 4 INTRODUCTION 4 1.0 INTRODUCTION 4 1.1 BACKGROUND TO THE STUDY 4 1.2 STATEMENT OF THE PROBLEM 4 1.3 THE AIM OF THE STUDY. 5 1.4 OBJECTIVES OF THE STUDY 5 1.5 RESEARCH HYPOTHESIS 5 1.6 RESEARCH QUESTIONS 5 1.7 LIMITATION OF THE STUDY 6 1.8 ORGANIZATION OF STUDY 6 1.9 SIGNIFICANCE OF THE STUDY 6 CHAPTER TWO 7 2.0 LITERATURE REVIEW 7 2.1 STRUCTURE AND PERFORMANCE OF RURAL AND MICRO FINANCE INDUSTRY 7 2.2.0 RURAL AND COMMUNITY BANKS (RCBS) 9 2.2.1 SAVINGS & LOANS COMPANIES 10 2.3 NON-GOVERNMENTAL AND COMMUNITY-BASED ORGANIZATIONS 10 2.4 INFORMAL FINANCE 11 2.4.1 MONEYLENDERS 11 2.4.2 TRADERS 12 2.5 GOVERNMENT CREDIT PROGRAMS 12 2.5.1 INTEREST RATES 13 2.5.2 SECURITY 13 2.5.3 THE NEED FOR THE RURAL CREDIT 14...
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...they need collateral as a requirement for getting a loan and the transaction costs are so high. Governments and international donors assumed that the poor required cheap credit and saw this as a way of promoting agricultural production by small landholders. Since the 1980s the fields of Micro finance (MF) has grown substantially. Donors actively support and encourage micro finance activities focusing on micro finance institutions (MFIs) that are committed to achieving substantial outreach and financial sustainability. In Uganda, the health of the financial sector has been impaired by political and social turmoil. It was indicated that the troubles of the 1970s and early 1980s produced a severe contraction of Uganda’s monetary economy, a decline in financial intermediation and a loss of financial depth. In addition to that, the concentration of financial services lay in the hands of a few commercial banks, of which two banks; the then Uganda commercial bank now STANBICK Bank and cooperative bank which...
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...PROPOSAL ON IMPACT OF RURAL BANKING ON RURAL FARMERS IN BANGLADESH INTRODUCTION: Bangladesh is an agro-based country, essentially are endeavoring for rapid development of the country. More or less 80 percent people directly or in directly depend on agriculture for their occupation .But it is a matter of great sorrow that farmers of our country get less facility in agricultural inputs especially agricultural credit. Due to the lack of credit at proper time they cannot produce crops at proper efficiency. So the responsibility of rural banks needs to be increased. Because If current agricultural trends continue, by the year 2020 in Bangladesh food shortage will increase many times, .The lower calorie intake could lead to poverty, malnutrition and hunger. In an attempt to alleviate some of these potential problems, several institutional and non-institutional sources of rural credit have been made available to Africans. It is hoped that, in the long term, credit will enable the poor to invest in agricultural and non-agricultural productive assets, to adopt new technologies and farming methods, and to minimize environmental degradation. Bangladesh, like other developing countries, has traditionally experienced low productivity, low income levels, low domestic savings, unemployment, and malnutrition. The Bangladesh government, through the Bangladesh Bank , established Rural Banks to channel credit to productive rural ventures and promote rural development. Rural development is a strategy...
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...WP/04/01 Bank of Uganda Working Paper Recognising the Role of Micro Finance Institutions in Uganda Justine Nannyonjo and James Nsubuga _________________________________ Bank of Uganda 2 WP/04/01 BOU Working PAPER Research Department Recognising the Role of Micro Finance Institutions in Uganda By Justine Nannyonjo and James Nsubuga February 2004 Abstract This paper shows that micro finance is an important part of the growth strategy in Uganda and has in the recent years gained increasing recognition. This is evidenced by initiatives and strong commitment by government, donors and practitioners towards supporting micro finance activities in Uganda, and the rapid expansion of the micro finance industry. Integration of Micro Finance Institutions (MFIs) into the formal financial system has been established, while measures have been taken to build capacity and enhance coordination in the micro finance industry, as well as expand the outreach of sustainable micro finance. The paper, however, identifies a number of challenges to the development of the micro finance industry: There is need to strengthen the capacity of MFIs to build their management information systems, and to rebuild infrastructure in underserved areas as well as strengthen capacity for identifying potential market structures, which could serve as the basis on which to build sustainable micro finance services. Other challenges include restoring peace in conflict areas and strengthening...
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...6 Million in 2010 Mobile banking will expand in UAE 8 million Filipinos now using mobile banking — BSP Citibank Launches Mobile Banking Service In Russia ‘2.5 billion World’s Adults remain Unbanked’, Barclays Report $10 million fund designed to incentivise mobile financial services companies. Huge growth in operator revenue by offering financial services studies by q q q q q q When the service is introduced customers will be able to send money directly from their accounts with the touch of a few buttons. They will also be able to send money home from pre-paid cards after MoneyGram’s systems are integrated with NBAD’s existing Arrow mobile phone transfer service. q http://freepaisa.com/wordpress/ (1 of 6)25-06-2010 10:23:24 FreePaisa for the world Continue reading NBAD to dial ‘R’ for remittance q CGAP Western Union reveals international mobile strategy Mobile Banking: You can now pay school fees using your phone MTN Uganda sees explosive growth in mobile money Doha Bank gets nod for mobile money transfer MasterCard Mobile MoneySend Platform Set To Go Live Utiba now certified in Western Union Money vendor Program Telenor Easypaisa have crossed 2 Billion through Fundamo Wallet System MTN RAWANDA: Mobile Money Hits Rwf590 Million Western Union piloting mobile remittance in UAE Telco to help rural majority access banking services Football Betting Innovation In Kenya via MPESA Visa joins bandwagon for mobile phone banking June...
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...and Medium Enterprises Business Guide SMALL AND MEDIUM ENTERPRISES (SME) BUSINESS GUIDE SUPPORTED BY MARCH 2008 1 Uganda Investment Authority © 2008 Small and Medium Enterprises Business Guide Foreword The Uganda Investment Authority (UIA) is proud to introduce this first Small and Medium Enterprises Business Guide. Small and Medium Enterprises (SME) are the backbone of the Ugandan economy. They contribute to job creation and poverty reduction. SMEs need to be supported to grow from small enterprises to medium and large businesses. This guide provides information and contacts on business licensing, access to finance, entrepreneurship skills training, business development services, and taxation/incentives. I wish to especially thank the Icelandic International Development Agency (ICEIDA) which has funded not only this guide but also entrepreneurship skills training and business development support for SMEs. Uganda Investment Authority has partnered with Makerere University Business School, Management Training and Advisory Centre and Uganda Women Entrepreneurs Association Limited to deliver these services. To my fellow entrepreneurs, I encourage you to use this Small and Medium Enterprises Business Guide to increase the profitability of your business. Patrick Bitature Chairman Uganda Investment Authority 2 Uganda Investment Authority © 2008 Small and Medium Enterprises Business Guide Table of Content I. INTRODUCTION ...................
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...foreclose on land in case of default. Compounding this lack of traditional collateral is the presence of a high degree of covariate risk, in particular market price risk and weather risk. Banks lending to agricultural clients know that agricultural and rural revenues easily drop below break-even levels due to extreme weather events and price falls, which result in defaults and higher loan loss provisions, thereby making lending to agribusiness unprofitable. The second major constraint in agricultural lending, high transaction and supervisory costs, is due to the particular risk, nature, and characteristics of the rural sector. In all financial markets, there is a trade-of between minimizing loan default and supervisory costs, but the nature of agricultural lending, especially through microfinance institutions, makes transaction costs and supervision costs disproportionately high relative to its urban counterpart. The small size of seasonal agricultural credit results in high due diligence costs per loan. The large geographical spread of customers, coupled with poor transportation and communication infrastructure, increase supervisory costs for financial institutions and compliance costs for customers. In addition, banks in rural areas find it difficult to attract qualified and trained loan officers. High levels of risk and transaction and supervisory costs...
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...MICROFINANCE INSTITUTIONS AND ECONOMIC GROWTH OF SMALL & MICRO-ENTERPRISES (SMES) ACASE STUDY OF (UWMFO) MICRO FINANCE INSTITUTION BY HENRY EGYEYU DEDICATION To the memory of my grand father Daniel Egeyu Whose love & enthusiasm for academia first kindled mine? ABSTRACT This research study investigates the impact of microfinance institutions on entrepreneurial development of Small & Micro-enterprises (SMEs) that are craving for growth and development in a war revived district called Gulu. The researcher used questionnaire as an instrument of primary data collection. Tables and simple percentages were used in data presentation. For clear analysis, the study centers on two broad variables; the dependent variable which is entrepreneurial development and the independent variable which is microfinance institutions. Three different hypotheses were formulated and tested using various statistical tools such as chi-square test, analysis of variance and simple regression analysis. The study reveals that (i) there is a significant difference in the number of entrepreneurs who used microfinance institutions and those who do not use them; (ii) there is a significant effect of microfinance institutions activities in predicting entrepreneurial productivity; and (iii) that there is no significant effect of microfinance institutions activities in predicting entrepreneurial development. The researcher concludes...
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...The Contribution of Government to Rural Investment: A Case Study in Matara Divisional Secretarial area. INTRODUCTION CHAPTER CPM: 9680 Introduction 1.1 Introduction This research is mainly focusing on, whether the government contribution is at a satisfactory level regarding the rural people Investment. Previously conducted researches found that there is a positive relationship between Income and investment in Formal Institutions, and negative relationship between Income and investments in Informal Institutions. In today?s Sri Lankan context there is a high possibility of rural people in tend to informal investment sources rather than the formal sources of Investment. There are several factors affecting to this situation...
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...“Globeleq scrambling for Africa” Table of Contents Introduction 3 Literature Review 4 Globeleq Tanzania 4 Globeleq Egypt 5 Globeleq Cote d’Ivoire 5 Globeleq South Africa 5 Globeleq in Uganda 6 Determinants for the 6 countries that has promoted such as: 6 Successes and Failure 7 Justification and Rational 8 Conclusion 9 Group progress 9 Introduction Foreign Direct Investments (FDIs) in the world today are an important economic resource and tool. Over the last three decades, FDI inflows have produced powerful stimulus for economic development in various countries across the globe. FDI inflows can help an economy by giving opportunities for improving the level of business and legal services, wholesale and retail trade or service sector. Thus, FDI has the potential to create jobs, improve productivity, the exchange of expertise and technology, increase exports and play a significant role in the long-term economic development (Liargovas & Skandalis, 2011; Financial Times (2012); Omisakin et al., 2009). In terms of foreign direct investments, Africa undoubtedly has all the makings of a prospective investment case due to its natural resources, trade openness, rapid economic and population growth, improving environment and maturing political system. As a result, despite a drop in investment in the last couple of years following a peak in 2008, Africa has remained an attractive investment destination throughout the global downturn and has managed to maintain...
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...analysis in which your company operates" ............................... 1.0 INTRODUCTION The Tanzania banking sector embarked on a plan for financial liberalization in 1992 in order to sustain its economic growth. and the plan has been accomplished through the mobilization of financial resources as well as by increasing competition in the financial market and by enhancing the quality and efficiency of provision of banking services especially lending, since the liberalization, the banking sector in Tanzania has been booming, particularly over the past ten years thanks to the general economic growth and friendly financial investment environment for foreign and local banks With a total of 34 banks and a few non-banking financial institutions, which are not allowed to open current accounts, the market is characterized by a few big players and several small banks falling between local and foreign banks, local banks primarily service local customers while foreign banks tend to operate as subsidiaries of large groups, such as Citigroup and Barclays, using strategies oriented to the international market. Banks can be categorized according to orientation towards different markets and clientele operating in Tanzania: local private banks, regional banks, international banks and multinational banks, Overall, the outlook for the banking industry in Tanzania is very positive and there are appealing opportunities for new comers to the sector. Being an employee...
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...AccountingExplained * Financial Accounting * Managerial Accounting * Miscellaneous ------------------------------------------------- Top of Form Bottom of Form Home >Managerial Accounting >Capital Budgeting > Payback Period | | | Payback Period Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques. Formula The formula to calculate payback period of a project depends on whether the cash flow per period from the project is even or uneven. In case they are even, the formula to calculate payback period is: Payback Period = | Initial Investment | | Cash Inflow per Period | When cash inflows are uneven, we need to calculate the cumulative net cash flow for each period and then use the following formula for payback period: Payback Period = A + | B | | C | In the above formula, A is the last period with a negative cumulative cash flow; B is the absolute value of cumulative cash flow at the end of the period A; C is the total cash flow during the period after A Both of the above situations are applied in the following examples. Decision Rule Accept the project only if its payback period is LESS than the target payback period. Examples Example 1: Even Cash Flows Company C is planning to undertake a project requiring initial investment of $105 million. The project is expected...
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...Review of Warehouse Receipt System and Inventory Credit Initiatives in Eastern & Southern Africa Final report commissioned by UNCTAD under the All ACP Agricultural Commodities Programme (AAACP) *The views expressed in this paper are those of the author and do not necessarily reflect the views of the United Nations September 2009 CONTENTS CONTENTS ............................................................................................................................................. i ACKNOWLEDGEMENT .....................................................................................................................iii GLOSSARY OF ABBREVIATIONS .................................................................................................. iv GLOSSARY OF ABBREVIATIONS .................................................................................................. iv SUMMARY ............................................................................................................................................ 1 Introduction ....................................................................................................................... 1 Observations on the different approaches ......................................................................... 1 Policy conclusions and recommendations ........................................................................ 3 Specific proposals .....................................................................
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...unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them. The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance institution scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. The introduction of microfinance institutions in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the rural poor. Microfinance institutions have taken up the challenges of the gap created by the Nigerian Deposit Money Banks. Microfinance institutions can be seen as an economic growth method intended to advantage the low income part of a given country like Nigeria, both rural poor and urban poor. This paper theoretically examines the impact of this institutions to Nigeria as a country....
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...Table of Contents 1. INTRODUCTION 1 1.1 Back Ground of the Study 1 1.2 Statement of the Problem 2 1.3 Objective of the Study 3 1.3.1 General Objective 3 1.3.2 Specific Objectives of the study 3 1.4 Research Questions 3 1.5 Scope of the Study 4 1.6 Significance of the Study 4 1.7 Limitation of the Study 4 2. REVIEW RELATED LITERATURE 5 2.1 Introduction 5 2.2 Credit Assessment 5 2.3 Credit Appraisal 6 2.4 Credit Documentation 6 2.5 Collateral 7 2.6 Interest Rate 7 2.7 Size of Loan 8 2.8 Purpose of Loan 8 2.9 Loan Period 8 2.10 Disbursement 9 2.11 Repayment of Bank Loans 9 2.12 Monitoring and Follow up 9 2.13 Factoring of Debtors through Credit Bureaus 10 2.14 Portfolio Management 10 3. RESEARCH METHODOLOGY 11 3.1 Research Method 11 3.2 Method of Data Collection 11 3.3 Determination of Population Size of the Study 12 3.4 Sample Size 12 3.5 Method Data Analyses 12 4. TIMELINE 12 5. BUDGET BREAKDOWN 13 6. REFERENCES 13 1. INTRODUCTION 1.1 Back Ground of the Study Bank lending is guided by credit policies which are guidelines and procedures put in place to ensure smooth lending operations. Bank lending if not properly assessed, involves the risk that he borrower will not be able or willing to honor their obligations (Feder & Just 1980). In order to lend, banks accept deposits from the public against which they provide loans and other form of advances. Since they bear a cost for carrying these deposits, banks undertake lending activities...
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