User’S Guide: a Legal Guide to Uganda’S Financial Sector

Introduction

The financial services sector in Uganda involves the businesses and institutions that manage money and provide intermediary services to transfer and allocate financial capital in an economy. The financial services sector is a service industry and it supports and supplements all other in- dustries but does not (itself) result in an end product such as goods. The financial services sector is a key sector and creates the fabric & framework on which all other sectors stand.

Uganda’s financial services sector at a glance

In Uganda the following entities and sectors are regulated to carry out financing activities:

• Tier I Financial Institutions: Commercial Banks (including Islamic Banking)

• Tier II Financial Institutions: Credit Institutions

• Tier III Financial Institutions: Microfinance Deposit Taking Institutions (MDIs)

• Tier IV Microfinance Institutions & Money Lenders: Non-Deposit Taking Microfinance Institutions, SACCOs, Self Help Groups, Community Based Microfinance Institutions & Money Lenders

• Investment Funds (trading in company shares/ securities on both the public and private market): Private Equity & Venture Capital Funds, Collective Investment Schemes (CIS)

• Other specialized sectors/ Industries: Insurance, Hire Purchase & Asset Finance, Real Estate/ Project Finance, Development Finance Institutions (DFIs)

The following diagram provides an overview of Uganda’s financial services sector, regulatory authorities and applicable laws.