KAMPALA, September 28, 2026 — Minister of State for Microfinance Harriette Musherure has urged Uganda’s Tier 4 financial institutions to embrace digital transformation, strengthen governance and invest in their people to remain sustainable and serve customers more effectively.
Musherure made the call on Thursday while closing the inaugural Annual Founders, Directors and Board Members Conference at Motive Creations in Bugolobi, Kampala. The conference was held under the theme, “Built to Last: Governance, Leadership and Transformation for Sustainable Tier 4 Institutions.”
Uganda’s Tier 4 financial sector comprises Savings and Credit Cooperative Organisations [SACCOs], non-deposit-taking microfinance institutions, money lenders and Village Savings and Loan Associations [VSLAs].
Musherure said the institutions play an important role in expanding financial inclusion by reaching Ugandans who may not have access to commercial banking services, including rural farmers, market vendors and small entrepreneurs who often lack the collateral required by conventional lenders.
She said government had established a regulatory framework under the Tier 4 Microfinance Institutions and Money Lenders Act to protect people’s savings, strengthen institutional governance and support the growth of the sector.
“Government has established a regulatory framework through the Tier 4 Microfinance Institutions and Money Lenders Act, aimed at protecting people’s savings, strengthening institutional governance and supporting growth based on trust,” she said.
The Minister described good governance as the foundation of sustainable financial institutions and urged boards and directors to understand their fiduciary responsibilities while maintaining a clear separation between governance and day-to-day management.
She also called on institutions to ensure transparent financial reporting, prudent risk management and accountability to members and customers.
“Where governance is weak, even the well-capitalised institution will crumble. Where governance is strong, even modest institutions can endure for generations,” Musherure said.
She said the sector was operating in an increasingly changing environment driven by digital financial services, changing customer expectations and emerging risks, including cyber threats and climate-related vulnerabilities.
Musherure therefore urged Tier 4 institutions to invest in digital record-keeping, integrate mobile money services and strengthen professional development programmes for both staff and board members.
She said technology should not be viewed as a threat to existing operations but as an opportunity to improve service delivery and efficiency.
“Transformation is not a threat. It is an opportunity to serve your members and customers better and more efficiently,” she said.
Musherure further linked the transformation of the microfinance sector to the Government’s Tenfold Growth Strategy, saying stronger and more efficient financial institutions would be critical to supporting businesses, households and communities to participate in Uganda’s economic transformation.
She reaffirmed the Government’s commitment to working with players in the microfinance sector, noting that expanding access to appropriate and sustainable financial services remains a national priority.
The Minister called for stronger collaboration between the Government and Tier 4 institutions in capacity building and training for boards and management.
She also urged stakeholders to improve the sharing of data and information to support better policymaking and evidence-based decision-making across the sector.
The conference brought together founders, directors and board members of Tier 4 institutions to discuss governance, leadership and strategies for ensuring the long-term sustainability of financial institutions serving communities across Uganda.
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