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BRAC seeks to grow its loan book among rural borrowers
BRAC has more than 38,492 saving groups that access financial services through mobile and agent banking as well as electronic systems. Photo / File
What you need to know:
- BRAC has 160,000 borrowers and 374,000 clients, 82 percent of which are women
BRAC has said it will in the next five years add 10 new branches in hard to reach areas to enable at least 300,000 borrowers access credit.
BRAC, which began as a microfinance company in 2006, before transforming into a tier two credit institution, later became a commercial bank in 20219.
While speaking in Munyonyo, Kampala during celebrations to mark 50 years, Mr Nkosilathi Moyo, the BRAC chief executive officer, said between this year and 2027, the bank will open up 10 new branches across the country to “reach out to 300,000 with the objective of seeing that the rural poor are [included] in the financial system”.
Currently, he said, BRAC has 160,000 borrowers and 374,000 clients, 82 percent of which are women.
Dr Michael Atingi-Ego, the Bank of Uganda deputy governor, said BRAC was one of the financial institution with a branch network of 162 branches in 84 districts.
The bank also has more than 38,492 saving groups that access financial services through mobile and agent banking as well as electronic systems.
Data indicate that BRAC is piloting agent banking in four of its branches and agent banking in five districts.
However, Dr Atingi-Ego warned that with the expansion of financial services, a number of financial institutions had been exposed to cyber-attacks, urging BRAC to ensure that it puts in place measures to mitigate risks.
Mr Shameran Abed, the BRAC International executive director, said sustainable and large-scale change must address and deliver both economic and social progress, noting that BRAC, having started as microfinance institution, has been integral part developing a holistic approach to change livelihoods.
In her address, First Lady Janet Museveni, said she, in 2006, had been impressed by BRAC after she had gone to Bangladesh where she encountered BRAC transform women, families and communities.
