Uganda's financial sector has shown marked growth in recent years, and great progress has been made in its regulation. In March 2010, 28 regulated financial institutions were providing the country with financial services through 488 registered branch offices, compared with just 270 or so branches at the end of 2006. Despite the successes achieved, more than 70 % of Ugandans (compared to 82 % in 2007) have no access to formal financial services, with poor people and rural populations at a particular disadvantage.

The inadequate access to basic financial services, such as savings, loans and payment systems, is one of the major challenges to economic development and poverty reduction. Women and smallholder farmers in rural areas are especially hard hit. Informal microfinance institutions, particularly the savings and credit cooperatives, or SACCOS, which receive strong support from the Ugandan Government, could play an important role in providing these population groups with alternatives. However, their potential remains limited due to low levels of training and the lack of regulation and supervision of the sector.

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