Factors Hindering Financial Inclusion in Uganda: A Case Study of Kamuli District

FACTORS HINDERING FINANCIAL INCLUSION IN UGANDA: A CASE STUDY OF KAMULI DISTRICT.
CHAPTER ONE: INTRODUCTION
Background to the Study
Uganda’s Vision 2040 highlights access to finance as one of the barriers among others that are affecting the competitiveness of the economy. Most individuals and firms access credit from informal sources. One of the reasons for the limited access to credit is the low level of domestic savings which affects the ability by institutions to offer long term finance. As such, the Government of Uganda (GoU) intends to increase gross national savings from the current level of 14.5 percent to about 35 percent of GDP by 2040, as a means to accelerate structural transformation (National Planning Authority, 2013).
Uganda has made significant progress in improving the welfare of its citizens. During the past 10 years, the incidence of income poverty has declined from 38 percent in 2002/3 to 22 percent (preliminary estimate) in 2013. On the other hand, GDP grew, on average, over 5 percent during the same period while the agricultural sector performed dismally—with annual growth rates of less than 3 percent on average, during 2002/3-2012/13.
An overview of the Uganda’s financial sector landscape
After independence in 1962 like many developing countries at the time, Uganda pursued financially repressive policies that allowed government to intervene in the financial/banking system. Government intervention was in form of setting up state owned banks, interest rate controls, partial nationalisation of foreign banks and the establishment of a variety of administered lending programmes (Brownbridge 1996). This era of financial repression led to the deterioration in the performance of Uganda´s financial/banking sector.
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...d from the financial system.
General Objective and Purpose of the Study
The general objective of the study will be to identify and analyse the factors that hinder financial inclusion in Uganda taking Kamuli District as the case study.
Specific Objectives
The study will be guided by the following specific objectives;
• To determine the factors that hinder financial inclusion in Uganda
• To ascertain what entails financial inclusion in Uganda
• To examine the various approaches taken to ensure financial inclusion in Uganda.
Research Questions
• What are the factors that hinder financial inclusion in Uganda?
• What entails financial inclusion in Uganda?
• What are the various approaches that have been taken to ensure financial inclusion in Uganda?
Scope of the Study
The study shall be carried out in Kamuli District.
Justification of the Study

Significance of the Study