Mobile money and Savings and Credit Cooperative Organizations (Sacco) form the largest sources of formal borrowing for adult Ugandans, according to a survey by Financial Sector Deepening Uganda.

Mobile money and Savings and Credit Cooperative Organizations (Saccos) form the largest sources of formal borrowing for adult Ugandans, according to a survey by Financial Sector Deepening Uganda.

The two, data shows, have a combined share of 32 percent, split into halves of 16 percent, respectively. 

The survey, titled Fin Scope Uganda 2023, found that 16 percent of adult Ugandans, which translates to 3.9 million, access credit through Saccos, which is the same number as those accessing mobile money. 

In the five years to 2023, the survey, funded by Bank of Uganda, aBi Finance, and the Bill & Melinda Gates Foundation, found that between 2018 and 2023 at least 51 percent or 12.5 million out of the 24.6 million adult Ugandans had borrowed money from different sources, among which included mobile money, Saccos, banks, credit institutions, micro deposit-taking institutions, saving groups and family and friends. 

Out of the 12.5 million, at least 11.6 million borrowed formally, while just 1.5 million borrowed informally.    

The two are followed by banks, which provide credit to 8 percent or 1.9 million, while credit institutions and micro-deposit-taking institutions provide 4 percent.