Uganda Microfinance Union (UMU): A Case Study
The paper states that flexibility is Uganda Microfinance Union's (UMU's) key to success. Flexibility enables UMU to adjust its financial products within in the arena of loan purpose, repayment schedules and interest rates. Others are the:
- Local initiative and vision of becoming an institution that mobilize local resources, both savings and capital;
- Synergies from combinations and collaborations;
- Targeting diversified clientele, especially rural clientele who had little access to financial services and zeroing in on specific, underserved market niches;
- Sound practices and the use of workable lending methodologies;
- Daily loan monitoring reporting system using a card system, and;
- Gender equity perspective in clientele.
Furthermore, UMU is accessible to many as it has five branches in four different districts, which offers loans and savings products. The paper examines the origin, ownership and governance, organization and management, management information system (MSI), financial products, financial performance and issues in sustainability. Looks at donors input into the growth of UMU and makes recommendations on how other MFIs can replicate UMU's strategy.