How to bring women, youth to formal economy

Possible answers to access to financial services  

Madina Goloba, a research fellow at the Makerere University-based Economic Policy Research Centre (EPRC), said that by having over 90% of the people in the informal economy means that something isn’t right. She said popular transaction products such as mobile money should not be taxed to enhance financial access.

She also added that lenders need to work towards reducing the cost of borrowing in banks so as to encourage women and youth to take up financial services.

In response, Henry Mbaguta, the assistant commissioner in charge of financial services at the Ministry of Finance Planning and Economic Development said closing the financial inclusion gap will require hands of government, private sector and development partners.

He said the new legal framework that has seen the birth of bancassurance, Islamic and agent banking will support the financial inclusion drive which will ultimately support greater local and economic activities and reduce gender inequality. He said government would use the study in formulating policies.