East Africa: Uniform Microfinance Law Crucial to Increase Financial Inclusion in EAC

11 Oct 2017

Harmonization of the microfinance sector policies in East African Community (EAC) will improve financial inclusion, ensure efficiency and support poverty eradication efforts across the bloc, according to the Association of Microfinance Institutions in Rwanda (AMIR). 

Jean Pierre Uwizeye, the senior programs manager at AMIR, said the law will also ease market entry for microfinance institutions (MFIs) across the region, noting that it calls for mutual recognition by EAC sector regulators to enable MFIs to operate freely across the bloc without any restrictions. “For instance, if a Ugandan-registered MFI wants to operate in Rwanda, the National Bank of Rwanda, as regulator, will facilitate its entry because the draft policy provides for recognition of certificates and licenses from member states,” he added.

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