URSB and Financial Sector Deepening Uganda have today signed a Memorandum of Understanding (MoU) that aims at fostering partnership in mutual areas of interest, such as positioning the Security Interest in Movable Property Registry System (SIMPO)to Uganda’s undercapitalized business ventures. TheMoU will provide a framework of cooperation and understanding between the two organizations on this and other ventures.
Under the partnership, URSB and FSDU will focus on facilitating stakeholder engagements towards making the Electronic Security Interest in Movable Property Registry System more sustainable in meeting the needs of the different stakeholders especially the micro, small & medium sized enterprises that grapple with lack of access to loan facilities from financial institutions.
SIMPO whose tagline is ‘easier borrowing, safer lending’ enables businesses to acquire capital for their growth using their movable property. It simply is a public database that provides information on registered encumbrances in tangible and intangible movable property such as electronics, livestock, crops, motor vehicles, motor cycles, trailers, machinery, intellectual property rights and stock/inventory. It also provides information on the parties to the security interest or loan agreement such as the secured creditor, debtor and owner of the movable asset pledged as collateral.
Speaking at the signing, Bemanya Twebaze, the Registrar General, asserted that partnerships like this one will help ease financial access for the previously underserved businesses. “With this MoU, we are looking forward to deepening the impact of our registrations experience in positioning a service that can benefit MSMEs in their efforts to access affordable credit, grow their portfolio, increase their production capacityand create employment while growing our economy,” he said
Rashmi Pillai, FSDU Executive Director said initiatives of this kind are crucial for Uganda’s development since the financial services sector plays a pivotal role.
“FSD Uganda has worked closely with the Uganda Registration Services Bureau (URSB) for the past two years, supporting the establishment of a legal and regulatory framework that enables organizations to issue credit against moveable collateral. In this new phase of our partnership, FSD Uganda will continue to provide technical assistance to URSB to help drive the adoption of business models that accept moveable collateral among formal financial services providers” she said
The partnership will also see both URSB & FSDUengage in the development of a sustainable business case for the Electronic Security Interest in Movable Property Registry System so that it can better meet the needs of the different stakeholders, strengthen cooperation on joint engagements, share experiences, information and best practices in the financial services sector.