Sector Leaders Push for Bankable Land Documentation in Uganda to Unlock Rural Finance
Sector leaders, regulators, and development partners convened at a High-Level Dialogue today on Land Lending to address a critical roadblock to financial inclusion in Uganda: the lack of bankable land documentation in rural communities.
The dialogue, held in Kampala, emphasised the urgency of transitioning customary land ownership into a legally recognised form of collateral to unlock affordable finance for smallholder farmers and Micro, Small, and Medium Enterprises (MSMEs).
The consensus among stakeholders was clear: structural reforms are necessary to make land a secure, trusted, and verifiable asset for the financial sector.
Necessity for Legalising Customary Ownership
The Ministry of Lands, Housing and Urban Development is leading the charge to formalise land tenure. Mr. Joseph Ssembatya, Commissioner at the Ministry, stressed the need for rapid transition.
“We must move quickly from social documentation to legal documentation, removing roadblocks for financial institutions. Communities must be empowered with accurate information to eliminate fears around using Certificates of Customary Ownership (CCOs) as collateral,” Ssembatya said.
He revealed that the Ministry is currently reviewing its National Land Policy to integrate these reforms, creating a legal framework that supports financial inclusion.
Building Capacity and Combating Fraud
The Responsible Land Policy in Uganda (RELAPU) project, a partnership between the Uganda Bankers Association (UBA) and GIZ, is piloting the structural changes necessary for success.
Ms. Flavia Nabukwasi, Project Manager UBA-GIZ, RELAPU, highlighted the need for training across the ecosystem, saying, “Building capacity on land documentation is essential for all stakeholders, as well as creating awareness to protect communities, government and financial institutions from fraudsters.”
She noted that the RELAPU project involves six key participating financial institutions committed to navigating this transition: Centenary Bank, FINCA Bank, Equity Bank, Opportunity Bank, Pride, and Pearl Bank.
Regulator and Partner Commitment to Risk Mitigation
Financial regulators and development partners underscored that structural adjustments are necessary to mitigate the risks associated with non-traditional collateral.
Bank of Uganda’s Role
Ms. Hajara Kasule, Director of the Administered Funds Department at the Bank of Uganda (BoU), stressed that “Secure, verifiable and trusted land information is fundamental to inclusive finance.”
She explained that by strengthening systems around land inventory protocols, the BoU is taking necessary steps toward unlocking affordable and reliable finance.
Easing Collateral Requirements
Mable Charity Namala, Portfolio Coordinator at KfW Development Bank, urged financial institutions benefiting from concessional liquidity (low-interest funds) to reciprocate by easing collateral requirements and accepting CCOs and Land Inventory Protocols (LIPs). She advocated for structured adoption to minimise risk and encourage usage.
Ensuring Long-Term Policy Alignment
To ensure these reforms outlive the current projects, partners focused on institutionalising the framework through policy and budgeting.
Policy Roadmap
Mr. Musa Lukwago, Principal Economist at the Ministry of Finance, emphasised the need for a clear, structured roadmap backed by strong policy and budgetary alignment, saying, “Only then can financial institutions confidently scale solutions that drive inclusion and growth.”
Institutionalising Reforms
Ms. Christina Banuta, EU Representative, confirmed that the output of the dialogue, the white paper, will serve as a guiding framework for ministries and regulators, ensuring reforms are institutionalised.
“It will promote continuity, embedding sustainability, accountability, and long-term impact into Uganda’s financial inclusion agenda,” she stated.
The consensus signals a significant shift toward recognising customary land as a valuable economic asset, poised to inject much-needed capital into Uganda’s agrarian and rural economies.
