Multi-Stakeholder Dialogue on Unlocking Finance for Farmers by Leveraging Land Tenure Documents to Expand Credit Access
The CREDIT REFERENCE BUREAUS ASSOCIATION OF UGANDA (CRBA) represented by Barbra Among Arinda participated in a dialogue focused on unlocking finance for farmers by leveraging land tenure documents to expand credit access.
In Uganda, agriculture is a primary livelihood for a significant portion of the population. However, access to credit remains a challenge due to issues related to land collateral. Approximately, 25% of land in Uganda is formally titled, leaving a large portion of the population without recognized land ownership documentation. This gap hinders their ability to use land as collateral for loans.
To address this, a collaborative project by the Uganda Bankers’ Association, GIZ Uganda, European Union and other stakeholders has seen to an initiative in select districts, aiming to support smallholder farmers by creating verifiable land collateral documents for those holding land interests, such as bibanja. These documents include Land Inventory Protocols and Certificates of Occupancy.
It was impressive to note that currently some institutions are using these documents in support of land collateral.
We believe that in addition to the above efforts, CRBs can play a pivotal role by:
1. Enhancing CRB online platforms to streamline land verification processes and facilitate due diligence checks to prevent fraudulent activities, such as multiple use or over-collateralization of land documents.
2. Collaborating with other stakeholders to advocate for the inclusion of non traditional tenure documents across different financial institutions, in credit assessments, promoting financial inclusion for farmers.
By aligning with these developments, CRBs can significantly contribute to expanding access to finance for Uganda’s agricultural sector, thereby driving economic growth and improving livelihoods.