...RURAL BANKING IN UGANDA: IT’S IMPACT ON RURAL FARMERS (A CASE OF UNYAMA) BY HENRY EGYEYU Reg N0: 07/U/456/BAK/PS MAY, 2012 DECLARATION I Henry Egyeyu, hereby declare that this research report is my original work and to the best of my knowledge, has never been published and submitted for the award of any degree in any University or Institution before. Sign ……………………………………………….. Date ……………………………………………... Henry Egyeyu Reg No: 07/U/456/BAK/PS APPROVAL This research papers under the topic “Rural Banking in Uganda: It’s Impact on Rural Farmers” Has been under my supervision and is now ready for submission with my approval. Sign: ……………………………………… Date: …………………………………. Mr. Ambrose Eger Supervisor DEDICATION To the memory of my late grandfather Daniel Egyeyu Whose love & enthusiasm for academia first kindled mine? ACKNOWLEDGEMENT Achievement often sets off a chain reaction. Those who earn awards in various disciplines in their careers inspire us in turn to strive and excel with hard work and deeds of succession. That has been true of the process of writing this dissertation I am grateful for the motivation of Geoffrey Epolu at guluuniversity@AR.com whose question, “Do you want to graduate?” first got me started. Paul Onyango Delewa, lecturer at Gulu University, read the first script and encouraged me to go on with the dissertation. Ambrose Eger as he had always done before, made sure that what I researched communicated my...
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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...
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...Grameen Bank. It became popular in the 1980s s a response to doubts and research findings about a state delivery of subsidized credit to the poor farmers. According to Ledgerwood (2001), prior the 1980s government agencies were the predominant avenue for providing productive credit to those with no previous access to credit facilities. Their services had and still have limited access, because 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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...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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...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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...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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...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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...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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...FINANCE IN VALUE CHAIN ANALYSIS—A SYNTHESIS PAPER microREPORT #132 OCTOBER 2008 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. FINANCE IN VALUE CHAIN ANALYSIS—A SYNTHESIS PAPER microREPORT #132 The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS INTRODUCTION ................................................................................. 1 OBJECTIVE ................................................................................ 1 DEFINITION ................................................................................ 1 IMPORTANCE ............................................................................. 1 REPORT STRUCTURE ................................................................. 1 THE VALUE CHAIN ANALYSIS (VCA) FRAMEWORK ..................... 3 ANALYTICAL VCF FRAMEWORK WITH CASE-STUDY ILLUSTRATIONS ................................................................................ 7 UNDERSTANDING THE CURRENT CASH FLOW AND CREDIT STRUCTURE (ANALYTICAL PHASE) ............................................ 7 Intra-firm Finance ......................................................... 8 Finance Services Provision .......................................... 9 Inter-firm Finance (Governance) ................................ 10 UNDERSTANDING...
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...CHAPTER ONE INTRODUCTION 1.1 INTRODUCTION Economist always say that human beings behavior are rational that is, they are classified and directed at some specific point, devoid of unnecessary emotions and sentiments. In the same line of thought when a group of persons decided to join or form a co-operative society, they do so with some rationale behind their intention and or action (Sanusi, 2003). Economics reasons constitute the major motive why people join or form co-operative. It is an attempt to improve one’s income by carrying out more economic activities or improving on the performance of the present enterprise of the individual. By so doing, the member’s economic position is increased. A tailor who joins a tailors’ co-operatives society has among other reasons the economic motive(Bog-Igwe, 2007). Co-operative action takes place when individuals pool their resources together which are often meager in an effort to obtain what is needed by all but can not be obtained by the use of an individual’s resources, talents, time, information or effort. This habit has existed since the origin of humanity, that is, since the time that human beings started living together on the basis of family unit and or in a community. Co-operation is customary and instinctive solidarity. The first co-operative act of man was when the first human family started gathering food even before agriculture was invented (Mbat, 2000). The more advanced forms of traditional co-operation is demonstrated...
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...Autumns Internship Project KPMG Strategic and commercial Intelligence Department Inverting the Pyramid: Inclusion in the Financial Services Industry Final Project Report 19/11/2010 Submitted By: Hufriya Kavarana PGP-09-031 S.P. Jain Institute of Management and Research, Mumbai Inverting the Pyramid: Inclusion in the Financial Services Industry 2 | P a g e Table of Contents Preface .............................................................................................................................................. 3 Acknowledgement ............................................................................................................................ 4 Executive summary.......................................................................................................................... 5 Overview .......................................................................................................................................... 7 Components of financial inclusion—what is being measured? ..................................................... 8 Introduction ...................................................................................................................................... 9 Indian Scenario ............................................................................................................................... 13 Magnitude and Spread of Financial Exclusion ................................................................
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...world's poor. According to a 2005 World Bank estimate, 26.1% of the total Indian population falls below the international poverty line of US$ 1.25 a day (PPP, in nominal terms 21.6 a day in urban areas and 14.3 in rural areas).[1] A recent report by the Oxford Poverty and Human Development Initiative states that 8 Indian states have more poor than 26 poorest African nations combined which totals to more than 410 million poor in the poorest African countries.[2][3] According to a new UN Millennium Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, while India's poverty rate is projected to drop to 22% in 2015.[4] The report also indicates that in Southern Asia, however, only India, where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015, is on track to cut poverty in half by the 2015 target date.[4] The 2011 Global Hunger Index (GHI) Report ranked India 45th, amongst leading countries with hunger situation. It also places India amongst the three countries where the GHI between 1996 and 2011 went up from 22.9 to 23.7, while 78 out of the 81 developing countries studied, including Pakistan, Nepal, Bangladesh, Vietnam, Kenya, Nigeria, Myanmar, Uganda, Zimbabwe and Malawi, succeeded in improving hunger condition.[5] ------------------------------------------------- [edit]Poverty estimates There has been no uniform measure of poverty in India.[6][7] The Planning Commission...
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...Introduction Sir Fazle Hasan Abed is a social worker and the founder and chairman of BRAC, the largest NGO in the world. Fazle Hasan Abed was born in 1936 into a landed family in Baniachong in Bangladesh’s Habiganj district. Fazle Abed's father and his three uncles were adopted by Syed Shamsul Huda, who was one of the most influential personalities in Calcutta. Under Syed Shamsul Huda's direction, Fazle Abed's father Syed Mustafa Ali and his three uncles received education from the prestigious St. Xavier's College, Calcutta. However Fazle Abed's family moved out of Calcutta and he matriculated from Pabna Zilla School and went on to complete his higher secondary education from Dhaka College. Then He left home to attend Glasgow University, where, and in an effort to break away from tradition and do something radically different - he studied Naval Architecture. Later he joined the Chartered Institute of Management Accountants in London. The 1971 Liberation War of Bangladesh had a profound effect on him, then in his thirties, a professional accountant who was holding a senior corporate executive position at Shell Oil. The war dramatically changed the direction of his life; he left his job and moved to London to devote himself to Bangladesh's War of Independence. There, he helped to initiate a campaign called "Help Bangladesh" to organize funds to raise awareness about the war in Bangladesh. Fazle Hasan Abed, the founder and chairperson of the world's largest NGO, he is...
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...publication EXECUTIVE SUMMARY '[When prices are low] , we sacrifice a lot in the way of clothing, tools and food. We can’t afford meat, we had to buy other parts of the animal which were inferior. We can’t eat eggs, or drink milk...When the children get ill we don’t have the money to take them to the doctor… One always lives with uncertainty, always in debt; it's always borrow here, borrow there; we live dependent on credit... Of course, there is no peace living with such uncertainty. You don't know whether to take out a loan or not because you could lose the money you've invested.’ Vitelio Menza, small coffee producer in Colombia1 Providing livelihoods to farmers in developing countries is a crucial challenge for reducing world poverty. When fairly priced, export crops, such as coffee or cocoa, can help millions of farmers and their families to lift themselves out of poverty. In the case of coffee, 70% of the world’s supply is provided by smallholders cultivating less than 10 hectares in 80 countries in Africa, Asia and Latin America. However, the extreme volatility and longterm decline in coffee prices on international markets endangers the...
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...INTRODUCTION Poverty in India is widespread, with the nation estimated to have a third of the world's poor. In 2010, the World Bank reported that 32.7% of the total Indian people fall below the international poverty line of US$ 1.25 per day (PPP) while 68.7% live on less than US$ 2 per day.[1] According to 2010 data from the United Nations Development Programme, an estimated 29.8% of Indians live below the country's national poverty line.[2] A 2010 report by the Oxford Poverty and Human Development Initiative (OPHI) states that 8 Indian states have more poor people than 26 poorest African nations combined which totals to more than 410 million poor in the poorest African countries.[3][4] A 2013 UN report stated that a third of the worlds poorest people live in India.[5] According to a 2011 poverty Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, while India's poverty rate is projected to drop to 22% in 2015.[6] The report also indicates that in Southern Asia, however, only India, where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015, is on track to cut poverty by half by the 2015 target date.[6] However, this decline in poverty is debatable given the fact that there are question marks on methodology of evaluating poverty. Indian journalist Ravi S Jha writes in the Guardian[7] on the need of measuring poverty by segregating India's poor in different groups...
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