As a company limited by guarantee under Ugandan law, UMU is presently owned by its stakeholders. UMU plans to transform into a Micro Deposit-Taking Institution. Proposed shareholders are Technical partners (40%), UMU NGO (10%), UMU ESOP (10%), Individuals (20%) and Socially Responsible Investors (20%).

The total project cost is estimated at $1 million, in the form of an IFC senior loan or, if possible, a guarantee supporting local currency financing.

1.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	1.0
Loan
Equity

* These investment figures are indicative

UMU headquarters are in Kampala, Uganda. Through its 13 service centers, it provides financial services to MSEs and low income populations in urban and rural areas of Luwero, Mpigi, Masaka, Wakiso, Kayangu, Busia, Adjumani, Kampala, Mukono, Kisoro, Moyo, Mubende, Kiboga, Jinja and Mbarara districts.

This is a Financial Intermediary (F1) Type 1 category project according to IFC’s environmental review procedures. The project sponsor, AIM, will be required to develop an environmental management system that will require that UMU’s lending operations meet Uganda’s environmental, health and safety requirements, and be consistent with IFC’s Microfinance Exclusion List. IFC will work with UMU to develop an environmental review capacity. Depending upon IFC’s assessment, environmental training may be required.
Location of environmental documents in locally affected community

- Development Impact: Microenterprises and small businesses account for the major share of the private sector and employment for low-income populations in Uganda and other developing countries. Yet, despite their importance, these businesses face serious obstacles to viability and growth because they have limited access to financial services such as credit, savings, payment and money transfers. The development of financial institutions specialized in microfinance, is strongly developmental -- in terms of its high economic impacts, stimulus for business growth, employment creation and promotion of commercially-oriented microfinance techniques. - IFC Role: IFC has a strong track record as risk-taking investor, strategic advisor and technical assistance provider to financial institutions, and has played a significant role in developing commercial microfinance globally. Experience shows that IFC’s investment in microfinance contributes to attracting other institutional and private sector investors to participate in the insustry, thus laying a foundation for the growth of commercial microfinance.