As Uganda’s microfinance sector continues to expand its role in supporting entrepreneurs and small businesses, institutional investors and commercial lenders are increasingly looking beyond traditional collateral to assess funding opportunities. Industry experts say strong governance, reliable financial data and operational transparency are emerging as key enablers for Tier IV lenders seeking to access wholesale capital and scale their impact.
Speaking at the inaugural Founders, Directors and Board Members Conference of the Association of Non-Deposit-Taking Microfinance Institutions (ANDT) in Bugolobi, dfcu Bank Head of Enterprise Banking, William Kayongo, encouraged Tier IV financial institutions to strengthen the systems and practices that enhance credibility and investor confidence.
The conference, held under the theme “Becoming Fundable Beyond Collateral,” brought together sector leaders to explore practical strategies for improving institutional readiness for growth and attracting sustainable financing.
“The future of financing is increasingly data-driven because lenders want to see evidence of systems that can effectively track portfolios, monitor performance and provide accurate financial information,” said Kayongo. “Institutions that invest in strong governance, reliable reporting and operational discipline position themselves more competitively for funding and long-term growth.”
Kayongo noted that participation in the Credit Reference Bureau (CRB), timely financial reporting and sound internal controls demonstrate institutional maturity and create greater confidence among potential funding partners.
“Being part of the Credit Reference Bureau signals that an institution understands and embraces industry standards. It provides transparency and helps lenders better appreciate how an organisation manages its credit portfolio and customer relationships,” he said.
As demand for financial services among small businesses and entrepreneurs continues to grow, access to wholesale funding remains an important avenue for Tier IV institutions seeking to extend their reach. According to Kayongo, organisations that can consistently provide quality financial information and demonstrate strong governance are often better positioned to attract institutional capital.
“The more formalised and professionally managed an institution becomes, the more attractive it becomes to investors and lenders alike,” he added.
While access to capital remains critical, speakers agreed that the institutions best positioned for growth will be those that pair ambition with strong foundations. As Uganda’s entrepreneurial economy expands, well-governed and professionally managed microfinance institutions will play an increasingly important role in extending responsible and sustainable access to finance.
