Commercial Microfinance Ltd., a Ugandan microfinance institution (MFI), has unveiled a junior savings account for children in Uganda. Interest on the accounts will yield 5 percent per annum. The savings accounts’ conditions allow for withdrawal at any time and no transaction fees.As noted by Uganda news source New Vision, Commercial’s release of the new microfinance product contributes to a wave of microfinance competition in the region. In Uganda alone, the previous month’s microfinance events have included MFI Uganda Microfinance Ltd. (UML) releasing a micro lease product and a marketing campaign for its “From Earth to Sky” savings product, as well as government-owned Postbank Uganda creating the Bonna Baggagawale Project, a new initiative to provide rural micro loans. The most recent overview of the Ugandan microfinance sector, provided by the Consultative Group to Assist the Poor (CGAP) in 2003, reported that there are at least 1,500 MFIs throughout Uganda with a combined total of over 500 microfinance branches, serving more than 935,000 savers and 395,000 borrowers (p. 3).
According to the MIX, the microfinance information clearinghouse, Commercial’s gross loan portfolio stands at USD 4.5 Million (see “Financial Data”), the sixth largest portfolio in Uganda, and has total assets of USD 8.3 million (see “Financial Data”). Savings deposits held by the MFI stand at USD 3.9 million. MicroRate, a microfinance rating agency, gave the MFI a B rating in 2005.
By Quentin Ruiz-Esparza, Research Associate
Additional Resources:
Commercial Microfinance Ltd.: “Home.”, ho@cmf.co.ug
allAfrica.com: “Uganda: Commercial Micro Finance Woos Children.” By Nicholas Kajoba, nvision@newvision.co.ug
New Vision: “Home.”, nvision@newvision.co.ug
MicroCapital article, July 10, 2007, “Uganda Microfinance Ltd. (UML) releases Micro Leasing Financial Product.”
MicroCapital article, June 27, 2007, “Uganda Microfinance Ltd. (UML) Begins Marketing Campaign for “From Earth to Sky” Savings Product.”
MicroCapital article, June 27, 2007, “PostBank Uganda to Implement Microfinance Intensive Bonna Baggawale Project.”
CGAP: “Home.”, cgap@worldbank.org
CGAP: “Uganda Microfinance Sector Effectiveness Review.”
The MIX Market: “Homepage.”, info@mixmarket.org
MicroRate: “Home.”
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