The Microfinance Support Center (MSC), an arm of the government of Uganda, reportedly is urging groups such as village savings and credit cooperative organizations (SACCOs), microfinance institutions, and small and medium enterprises, to apply for credit from the company “yet demand for it has been low” [1]. MSC suffered from bad publicity surrounding fraud investigations of several of its former directors in 2011. MSC offers loans up to UGX 100 million (USD 40,000) with no collateral requirements and interest rates ranging from 9 percent to 16 percent per year. According to a statement attributed to MSC Executive Director John Peter Mujuni, the company has “a lot of” funds allotted for lending services.
The work of MSC is one element of the Ugandan government’s “Prosperity for All” program, which aims to transform “the rural economy through job creation and increase in household incomes.” MSC does not report to the US-based nonprofit Microfinance Information Exchange (MIX), and no further financial information on the organization is available.
By Juan Blanco, Research Associate
About Microfinance Support Center
The Microfinance Support Centre Limited (MSC) is a government-owned company based in Kampala, Uganda. MSC is one of the lead agencies in the implementation of the government’s “Prosperity for All” program, which aims to transform “the rural economy through job creation and increase in household incomes.” MSC provides loan products that carry interest rates between 9 percent and 16 percent annually. In addition, the company provides business development services. MSC supports legally registered institutions, namely: village savings and credit cooperative organizations (SACCOs), microfinance institutions, and small and medium enterprises. MSC operates through 12 offices across the country, namely: Arua, Gulu, Hoima, Iganga, Kabale, Kabarole, Kampala, Masaka, Mbale, Mbarara, Moroto and Soroti.
Sources and Additional Resources
[1] All Africa, “Uganda: Microfinance Centre Offers Cheap Credit” by Alon Mwesigwa, March, 2014, http://allafrica.com/stories/201403260069.html
MicroCapital Story, July 19, 2013, “Association of Microfinance Institutions in Uganda (AMFIU), National Network of People Living with HIV Uganda (PLHIV), Stop Aids Now, Humanist Institute for Development Cooperation (Hivos), Agency for Co-operation in Research and Development (ACORD) to Support MFI Clients Affected by HIV/AIDS in Uganda,” https://www.microcapital.org/microcapital-brief-association-of-microfinance-institutions-in-uganda-amfiu-national-network-of-people-living-with-hiv-uganda-plhiv-stop-aids-now-humanist-institute-for-development-cooperation/
MicroCapital Story, May 1, 2013, “$10.4m Uganda Rural Challenge Fund to Issue Matching Grants to Financial Institutions Developing New Financial Products,” https://www.microcapital.org/microcapital-brief-10-4m-uganda-rural-challenge-fund-to-issue-matching-grants-to-financial-institutions-developing-new-financial-products/
MicroCapital Story, November 1, 2010, “Uganda’s Microfinance Support Centre Limited (MSC) Moves to Recover Unpaid Loans from SACCOs,” https://www.microcapital.org/microcapital-brief-uganda’s-microfinance-support-centre-limited-msc-moves-to-recover-unpaid-loans-from-saccos/
MicroCapital Story, January 5, 2010, “Bypassing Microfinance Institutions, Uganda Savings and Credit Cooperatives (SACCOs) to Get Funds Directly From Government-Run Microfinance Support Centre (MSC),” https://www.microcapital.org/microcapital-brief-bypassing-microfinance-institutions-uganda-savings-and-credit-cooperatives-saccos-to-get-funds-directly-from-government-run-microfinance-support-centre-msc/
MicroCapital Universe Profile: Microfinance Support Centre (MSC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Support+Centre+%28MSC%29
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