MICROCAPITAL BRIEF: Uganda’s Microfinance Support Centre Limited (MSC) Moves to Recover Unpaid Loans from SACCOs

Uganda’s Microfinance Support Centre Limited (MSC), a government outfit that supports savings and credit cooperative organizations (SACCOs) in the country, has hired unnamed officials to recoup unpaid loans from SACCOs in northern Uganda.

Jessica Lwanga, MSC’s regional coordinator, said that the Centre had already alerted nine SACCOs—many of which are in Uganda’s northern districts of Gulu, Kitgum, and Pader—of the Centre’s intentions to sue over the organizations’ lack of repayment. According to Ms. Lwanga, the SACCOs “have been warned several times on the dangers of non-compliance.”

Reports indicate that many members of the delinquent SACCOs have since gone into hiding to escape the recovery attempts.

About the Microfinance Support Centre Limited (MSC): The Microfinance Support Centre Limited (MSC) is a federally-owned organization founded in Uganda in 2001. It is tasked with managing the Rural Microfinance Support Project, which is funded by both the government of Uganda and the African Development Bank (AfDB), and with handling the funds that support savings and credit cooperative societies (SACCOs). It also offers loan products and skills training to clients in the agricultural sector. MSC does not report financial information the Microfinance Information Exchange (MIX), the microfinance information clearinghouse [1].

By John Howard-Smith, Research Associate

[1] Daily Monitor: “Government Moves to Recover Loans from Saccos.”, http://www.monitor.co.ug/News/National/-/688334/1040430/-/clvoacz/-/

MicroCapital.org article, October 19th, 2010: Ugandan Government Orders Release of $26m to Aid Rural Poor through Microfinance, https://www.microcapital.org/microcapital-brief-ugandan-government-orders-release-of-26m-to-aid-rural-poor-through-microfinance/#more-7719

MicroCapital’s Microfinance Universe profile: The Microfinance Support Centre Limited (MSC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Support+Centre+Limited+(MSC)

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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