SPEKE RESORT MUNYONYO — Minister of State for Finance, Planning and Economic Development (Microfinance), Hon. Shartsi K. Musherure, has called for stronger collaboration between the Executive and Parliament as the government prepares for the upcoming budgeting cycle.
Speaking at a two-day retreat held at Speke Resort Munyonyo, Hon. Musherure emphasized that the engagement brought together officials from the Ministry of Finance, Planning and Economic Development alongside members of key Parliamentary Committees: Finance, Planning and Economic Development; National Economy; and the National Budget.
The minister described the joint retreat as a crucial opportunity to align mandates and enhance coordination ahead of the national budgeting process.
“Strong institutions work best when they communicate, coordinate, and hold one another accountable,” she noted.
Gains in Financial Inclusion
Hon. Musherure highlighted significant progress in the microfinance sector, revealing that financial inclusion in Uganda rose from 70% in 2009 to 81% in 2023. Under the Second National Financial Inclusion Strategy, the government aims to reach 85% by 2028.
She attributed these gains largely to the widespread adoption of mobile money, Savings and Credit Cooperative Organisations (SACCOs), and Village Savings and Loan Associations (VSLAs).
Focus on Governance and Regulation
Despite the progress, the minister cautioned that increased access must go hand-in-hand with responsible lending, strong governance, consumer protection, and robust regulation—particularly given the rapid rise of digital lending platforms.
“The growth of the Tier IV microfinance sector presents both an opportunity and a responsibility,” Musherure said. “We must strengthen supervision, improve SACCO governance, protect borrowers from exploitative lending practices, and close gaps in the regulation of digital lending platforms.”
She added that achieving these priorities will require dedicated legislative and budgetary support from Parliament.
Sustaining Government Flagship Programmes
Highlighting flagship initiatives such as the Parish Development Model (PDM) and Emyooga, Hon. Musherure underscored their vital role in providing affordable capital to grassroots communities. However, she stressed that future focus must pivot toward long-term sustainability, rigorous monitoring, effective loan recovery, and meaningful economic transformation.
Concluding her remarks, the minister expressed optimism following the retreat, reaffirming her commitment to working closely with Parliament, technical teams, and sector stakeholders to advance financial inclusion and fiscal governance nationwide.
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