Kampala – Uganda – The microfinance and SACCOs sector have been urged to leverage digital technologies in driving growth and sustainability while prioritizing environmental, social, and governance (ESG) factors.
This was the key takeaway from the 2nd Annual Microfinance and SACCOs Governance Forum, held at Mt. Zion Hotel in Kampala yesterday 4th December 2024, under the theme “Digital Transformation and Sustainability in Microfinance.”
The forum brought together key stakeholders from the microfinance and SACCO sectors, including financial experts, policymakers, industry leaders, and representatives from various microfinance institutions.
Masadde Goretti, CEO of Uganda Institute of Banking and Financial Services (UIBFS), emphasized the critical role of microfinance and SACCOs in fostering financial inclusion and community development.
“Microfinance and SACCOs play a critical role in fostering financial inclusion and uplifting communities. However, the demands of modern governance and sustainability require us to continually rethink and improve our approaches,” Goretti said.
She added that the conversation was important to align strategies with global standards while addressing local realities.
One of the topical discussions was the growing role of technology in enhancing financial inclusion in Uganda and across the region. Beatrice Lugalambi, General Manager and Corporate Communication and Marketing at Centenary Bank, highlighted the potential of digital platforms to streamline operations, reduce costs, and increase access to financial services for underserved communities.
“Digital platforms such as mobile banking, digital lending platforms, and fintech solutions can help us reach more people, especially in rural areas,” Lugalambi said. “However, ESGs are not just about the bottom line; they’re about the impact we have on communities. We must be at the heart of the people we serve.”
James Onyuta, Managing Director of FINCA Uganda, gave an insightful session on the role of microfinance in achieving sustainable development goals. He emphasized that microfinance institutions can adopt practices that foster the SDGs in their day-to-day operations.
The event was sponsored by Centenary Bank and Zimba Technologies and provided a platform for stakeholders to discuss the latest trends and innovations in the microfinance and SACCO sectors.
As the sector continues to evolve, it is clear that digital transformation and sustainability will be key drivers of growth and development. Experts say, by prioritizing ESG factors and leveraging digital technologies, microfinance and SACCOs can play an even more critical role in fostering financial inclusion and community development.
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