Ugandan President lauds introduction of Bsystems Collateral Registry System in Uganda
The extension of the web based collateral registry software solution by Bsystems Collateral Registry System in the East African country of Uganda has been launched.
Speaking during the official launch of the registry software platform at the State House Entebbe last week, Ugandan President, Yoweri Kabuta Museveni applauded the introduction of the Bsystems Collateral Registry System now known as the Security Interest in Movable Property Registry System (SIMPO) in Uganda.
According to him, the use of the online registry platform will enable Ugandans to use their moveable assets as collateral to borrow money for their businesses from financial institutions.
Uganda’s National Intellectual Property Policy by the Uganda Registration Services Bureau (URSB) was also launched at the same ceremony.
President Yoweri Museveni noted that the smooth implementation of the registry system and the IP Policy will go a long way to boost the ease of doing business and stimulate innovation and creativity in Uganda.
“To most lenders, collateral means having land or a building. But if I have a thousand heads of cattle, each valued at sh1m, why would you refuse to finance my investment? The ministry of finance should wake up the banking sector. For entrepreneurship, agriculture, and industrialization to thrive in Uganda, the
Government will continue to address the issue of high lending rates amongst financial providers,” he said.
The Registrar General of Uganda Registration Services Bureau (URSB), Twebaze Bemanya in his remarks also disclosed that following its activation in September 2019, the Security Interest in Movable Property Registry System (SIMPO) has already recorded over 4,000 registrations, with the most commonly use assets to secure loans being motor vehicles and motorcycles.
He added that these account for most of the property owned and pledged by borrowers including micro, small and medium enterprises
Uganda’s new Security Interest in Movable Property Registry System (SIMPO) which was designed and developed by leading Ghanaian software solution company, Bsystems Limited will not only provide information on encumbrances of movable property of borrowers but to also assist creditors to easily have access to database online to register their interest in movable collateral pledged for loan.
Following the passing of the Security Interest in Movable Property Act of 2019 by the country’s legislative body, the Uganda Registration Services Bureau (URSB) and the Bank of Uganda together with other financial entities worked together to establish the SIMPRS to provide world-wide access for users to register an interest in movable property, enforcement of security interests, search of the register and other related matters.
Currently Bsystems Collateral Registry System which allows customers to search the system’s database to ascertain whether the same collateral has not been used to cover another borrowing has been implemented in eight African countries including Ghana, Liberia, Sierra Leone, Nigeria, Zambia, Malawi, Uganda, Ethiopia with an ongoing implementation in Mozambique to make it nine.
The web based collateral registry software solution designed and developed by Bsystems can be customized for registrations of security interests over debtor’s movable and immovable properties or collaterals to meet legal and operational requirements of the client.
The Collateral Registry System provide information on the existence of relationships between lenders and borrowers as they relate particularly to movable and immovable collateral[s] as well as other ancillary functions, providing users world-wide 24/7 access to the services of the system.
Bsystems has worked with the International Finance Corporation (IFC) a member of the World Bank Group and successfully developed and implemented the Collateral Registry System for the Bank of Ghana (BOG), the Central Bank of Liberia (CBL), the Department of Registrar General (DRG) of Malawi, the Central Bank of Nigeria (CBN), the Bank of Sierra Leone (BSL), the Patents and Companies Registration Agency (PACRA) of Zambia.
Mr. Thomas Baafi. CEO of BSystems limited