TABLE OF CONTENTS
DECLARATION ................................................................................................................. i
APPROVAL ....................................................................................................................... ii
DEDICATION ................................................................................................................... iii
TABLE OF CONTENTS .................................................................................................. iv
ACKNOWLEDGEMENT ................................................................................................. vi
ACRONYMS .................................................................................................................... vii
ABSTRACT .................................................................................................................... viii
LIST OF STATUTES ........................................................................................................ ix
LIST OF CASES ................................................................................................................ X
CHAPTER ONE ................................................................................................................ 1
1.0 INTRODUCTION ................................................................................................. 1
1.1 Background ofMicrofinance Institutions (MFis) .................................................... l
1.2 Background of the Study ......................................................................................... 8
1.3
1.4
"
Statement of the Problem ....................................................................................... 10
General Objective .................................................................................................. 11
1.4.1 Specific Objectives ................................................................................................ 11
1.5 Research Questions ................................................................................................ 11
1.6 Scope of the Study ................................................................................................ .11
1. 7 Hypothesis ............................................................................................................. 12
1.8 Significance of the Study ....................................................................................... 12
1.9 Literature Review .................................................................................................. 13
1.10 Research Methodology ......................................................................................... .21
1.11 Research Limitations ............................................................................................ .22
CHAPTER TWO ................................ ............................................................................ .25
2.0 Analysis of the Laws Polices and Regulations Governing Micro-Finance
Institutions in Uganda ........................................................................................... .25
2.1 The Laws and Regulations Governing Micro Credit Activities in Uganda .......... .25
2.2 Authority to Operate a Micro Finance Business in Uganda ................................. .31
IV
CHAPTER THREE ......................................................................................................... 35
CRITIQUE OF THE EXISTING LAWS ON COLLATERAL FORECLOSURE .. 35
3.0 Introduction ............................................................................................................ 35
3 .1 Why Micro finance Campaign in Uganda .............................................................. 3 5
CHAPTER FOUR .......................................................................................................... .38
RESEARCH FINDINGS, INTEPRETATIONS AND DISCUSSIONS .................... .38
4.0 Introduction ........................................................................................................... .38
4.1 Activities ofMicrofinance Institutions In Uganda ................................................ 38
CHAPTER FIVE ............................................................................................................ .46
CONCLUSION AND RECOMMENDATIONS .......................................................... .46
5.0 Introduction ............................................................................................................ 46
5.1 Conclusion ............................................................................................................. 46
5.2 Recommendations .................................................................................................. 47
BIBLIOGRAPHY .................................................................................. .51
ABSTRACT This study "Collateral Foreclosure and Microfinance Institutions, A Critical Analysis of the Law and Practice in Uganda" was carried out with specific aims of investigating the legal protection of interests of both MFis and benefiting targeted clients exploring the knowledgeability of the clients and MFis administrators about laws, polices and regulations governing credit financial services, comparing the common law doctrine of foreclosure and the present day practice on foreclosure and determining the legal consequences of collateral foreclosure. It was established in the study that, Micro finance is the provision of banking service for the individuals engaged in small businesses and those with small needs, largely in the informal sector (initially referred to as the poor). In Uganda, there are over 500 microfinance institutions operating all over the country and major players in the market include FINCA, commercial microfinance limited, Uganda finance trust limited, Opportunity Uganda, and pride microfinance Uganda limited. Over the past 20 years the sector has been revolutionalised as dozens of micro finance institution (MFis) have emerged and some have demonstrated the feasibility of delivery of such services on a funereally sustainable basis (especially the major players). After the enactment of the MDI Act 2003, many have applied to the central bank for license to start taldng deposits. Microfinance differs in crucial aspects from commercial banking and other business with which the readers may be familiar. This is principally because of the way most of them started and the unique lending methodologies. Most of them start off with the objective of improving the economic and social setting of the poor and therefore depend on donor funds for survival. Notably is that though there are thousands of MFis words over, not all of them are not self sustaining, few have achieved financial sustainability, but many hope to their motivation is still primarily social and economics of the poor, but they believe that attaining profit ability will allow them to expand their reach far beyond the limited donor or government funding that is available for their operations.
