2009年-世界发展银行全球_Uganda_-_Making_Finance_Work_158页_3mb

Summary of "Making Finance Work for Uganda"

Core Content

The report Making Finance Work for Uganda was published by the World Bank in December 2009, as part of a broader policy dialogue on financial sector development in Uganda. It was based on studies conducted in 2008 and 2009, in collaboration with Ugandan authorities, and complements the Making Finance Work for Africa initiative. The report is structured into two main parts: Improving Access to Financial Services and Improving the Supply of Term Finance, with the aim of supporting the National Development Plan (NDP) and the Financial Markets Development Plan.

Main Objectives

• To enhance access to financial services for a broader segment of the population.
• To increase the availability of term finance to support infrastructure and housing development.
• To contribute to policy dialogue and improve the financial system's role in economic growth and poverty reduction.

Key Challenges

• Limited financial access: 62% of Ugandans lack access to any financial services, with rural areas being significantly underserved.
• Low financial depth: Uganda has a low ratio of private credit to GDP and domestic deposits to GDP, indicating a shallow financial system.
• Inefficient banking sector: Despite being well-capitalized and stable, the banking system has low intermediation and high costs.
• Underdeveloped term finance market: Long-term financing is scarce, which hinders infrastructure investment and housing development.
• Pension system issues: The public sector pension scheme (PSPS) is unsustainable, leading to a large implicit pension debt.

Main Recommendations

Part 1: Improving Access to Financial Services

a. Expanding Access through the Banking System

• Short-term actions: Review BOU regulations, issue mobile banking licenses, and install a computerized case management system.
• Medium-term actions: Revise core deposit regulations, implement small claims procedures, and expand the Credit Reference Bureau (CRB) to include nonbank data.
• Expected outcomes: Increased lending to MSMEs, lower bank costs, and more branches and mobile banking services.

b. Developing Rural and Agricultural Finance

• Short-term actions: Submit Tier 4 regulatory bill, strengthen UCSCU, and develop crop and livestock insurance.
• Medium-term actions: Complete audits of SACCOs, submit leasing bill, and enhance the agricultural credit guarantee scheme.
• Expected outcomes: Improved access to trade credit, increased lending to SACCOs, and more banks offering leasing services.

c. Improving Payments and Remittances Systems

• Short-term actions: Present payment system bill to parliament, provide access to EFT for Tier 2 and Tier 3 institutions.
• Medium-term actions: Upgrade RTGS system, establish a common switch, and publish remittance data quarterly.
• Expected outcomes: Secure and efficient payment systems, increased use of ATMs and POS, and reduced remittance costs.

Part 2: Improving the Supply of Term Finance

d. Reforming the Pension System

• Short-term actions: Submit URBA bill to parliament, prepare amendments to legal frameworks, and issue regulatory guidelines.
• Medium-term actions: Delegate NSSF investment management to private asset managers, license all private schemes, and establish a working group for PSPS reform.
• Expected outcomes: A competitive and regulated private pension industry, reduced public pension debt, and improved financial literacy.

e. Developing the Housing Finance Market

• Short-term actions: Prepare rules for the mortgage act, revise valuation policy, and develop a strategy for long-term benchmark issues.
• Medium-term actions: Strengthen valuation capacity, issue long-term benchmark bonds, and establish a liquidity facility.
• Expected outcomes: Increased mortgage lending, improved mortgage transaction efficiency, and more long-term financing options.

f. Increasing the Private Financing of Infrastructure

• Short-term actions: Complete NWSC bond transaction, develop asset-backed securities policy, and prepare term transformation facility design.
• Medium-term actions: Submit asset-backed securities regulations to cabinet, establish a term transformation facility, and complete one PPP transaction.
• Expected outcomes: Reduced fiscal burden on the government, increased bond financing for infrastructure, and efficient PPP project development.

Key Information

• The report emphasizes the need for policy and institutional reforms to improve financial access and term finance availability.
• Legal and regulatory improvements are central to enhancing the financial system's performance, particularly in the areas of payments, pensions, and housing finance.
• Technology upgrades are necessary to reduce costs and improve the efficiency of financial services.
• Public-private partnerships (PPPs) are recommended to support infrastructure development, with the establishment of a PPP unit and guidelines being key.
• Collateral and information constraints remain major barriers to accessing finance, especially in rural and agricultural sectors.
• Pension reform is highlighted as a critical enabler for long-term financial market development and fiscal sustainability.

Conclusion

The report outlines a comprehensive roadmap for Uganda to enhance its financial system, with a focus on expanding access and improving the supply of long-term finance. It calls for coordinated efforts between the government, financial institutions, and international partners to implement reforms in a timely and effective manner.