The Bank of Uganda (BOU) has revoked the working license of Entrepreneurs Financial Center Limited (EFC), a microfinance deposit-taking institution (MDI) that began operations in Uganda in June 2012. The decision, announced on January 19, 2024, stems from the institution’s failure to address significant undercapitalization and poor corporate governance, which the BOU deems detrimental to the interests of depositors.
The BOU, exercising its powers under Sections 72 (1) and 12 (1) (d) & (g) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003, has placed EFC Uganda Limited under liquidation, revoked its license, and ordered the winding up of its affairs. The Deputy Governor of the BOU, Michael Atingi-Ego, emphasized that the institution’s inability to rectify its financial situation and governance issues prompted this decisive action.
Deposit Protection Fund of Uganda, in collaboration with the BOU, will communicate arrangements to depositors for accessing their deposits. The statement further urges other creditors to submit their claims to the Office of the Director of Financial Stability at the Bank of Uganda within 30 days from the date of the announcement.
The directive also emphasizes that borrowers of EFC Uganda Limited must continue servicing their loan obligations by making payments at Bank of Uganda offices and branches. Additionally, anyone in possession of EFC Uganda Limited’s property is instructed to deliver it to the Bank of Uganda and hand it over to the Office of the Director, Financial Stability.
