By Mathias Katamba Chief Executive Officer Uganda Finance Trust Ltd (MDI)

1. ENHANCING PROXIMITY OF FINANCIAL SERVICES TO THE RURAL POPULATION”ATTHE EAST AFRICA SUB REGIONAL WORKSHOP22nd -24th JULY 2008ADDIS ABABA, ETHIOPIA By Mathias Katamba Chief Executive Officer Uganda Finance Trust Ltd (MDI)

2. Uganda Context • Gained independence in 1962 • Various administrations - 1962 – 1971 Milton Obote • 1971 – 1979 Idi Amin • 1980 – 1985 Milton Obote • Stable since 1986 under President Yoweri Museveni

3. Uganda Context • Population: 30.2 million (estimate) • GDP: $300 per capita • Fertile soils, abundant rainfall • Largely agricultural/rural • Ranks 154 out of 177 on the • UN Human Development Index • Rebel activity in Northern Uganda is subsiding.

4. Uganda Context • Rural population: 70% • Economic activities of the rural population. • Lack of access to formal financial services • All formal financial institutions are urban based. • MFIs and Informal sector serving the rural population.

5. About Uganda Finance Trust Ltd (MDI) • Finance Trust is one of the oldest Microfinance Institutions in Uganda. First registered – UWFCT in 1984. • Incorporated as a share based company in March 2004 • A key player in Uganda’s formal financial sector. • A regulated Microfinance Deposit-taking Institution since 12th October 2005. • Member of Credit Reference Bureau (CRB) • One of the largest MFI branch networks in Uganda with all 23 branches interconnected. • Client base : 127,000 savers and 17,000 borrowers. • Offers a variety of savings and loans solutions and money transfer services through Money Gram International.

6. Vision & Mission Vision • Low-income people having access to financial services. Mission • To provide unique financial services to low Income people in Uganda, especially women, in a manner that delights our customers and adds value to our stakeholders.

7. Financial performance

11. Our rural customers • Men and women engaged in agriculture at different levels ranging from subsistence farming, production, trade, marketing and micro enterprises. • 19 of 23 Finance trust branches are rural based. • Rural customers account for 79% of the total clientele base. • Loan portfolio size : 78% of the total loan portfolio • Average loan size: $600 • Minimum loan size : $62 • Savings portfolio: 70% of the total savings deposit base. • Average savings balance $ 45.

12. Challenges of rural financingFinance trust experience Delivery: Infrastructure: • Data connectivity • Telecommunications • Access roads • Proximity of the branches Policies • Collateral • Personal guarantees • Cash guarantees • Literacy levels • Low savings culture

13. Challenges cont’d • High administrative costs • Risks: • Seasonality • Security of cash • Fraud

14. What we have been able to do • Product improvement, development & differentiation-Savings, loans & money transfers • Mobile technology-Village phone loans • Micro insurance • Transport facilitation • Client sensitization • Savings mobilization van • Flexibility in collateral requirements

15. Some of the rural branches

17. Some of our rural clients

21. A rural group being trained before getting a loan

23. The Outreach Team

24. Our Outreach Team training in the mobilization van

25. THANK YOU