Implementation of Secured Transactions Reform in Uganda by Yvonne Atwiine Mwesige
The presentation outlines Uganda's journey to reform its secured transactions framework, highlighting achievements, challenges, and efforts to promote reforms. Starting with the Chattels Transfers Act to the enactment of the Security Interest in Movable Property Registry Act in 2019 and subsequent amendments, the reform process is documented with an emphasis on aligning with international best practices.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Implementation of secured transactions reform in Uganda Yvonne Atwiine Mwesige Senior Registration Officer UGANDA
Presentation Outline Journey to reform Reforms Achievements Challenges Efforts to promote secured transactions reforms
Journey to Reform Chattels Transfers Act Cap 70 (a 1978 law) Provided for manual registration/filing of instruments into ledger books (could unrecorded) Had time restrictions for filing Limited in its application (excluded intangible assets, no clear rules of priority .etc) In 2004, the Uganda Law Reform Commission started on research and development work for the Chattels Securities Act eventually enacted in 2014. In 2015 & 2016, feasibility studies were done by FSDU and WB towards establishing a modern collateral registry based on 5 key principles be misplaced or go
Reforms Chattels inadequate to implement an online registry (was still limited in scope, referred to instruments, no provisions to support electronic filing) A physical benchmark Collateral Registry confirmed the need to align Uganda s secured transactions framework with International best practices for modern registries Language of the new law influenced by the UNCITRAL Legislative Transactions, the Registry Guide, and the Model Law. Securities Act 2014 was found done at the Ghana Guide on Secured
Reforms (cont.) Concluded in 2019 with the enactment of the Security Interest in Movable Property Registry Act (SIMPA), 2019 and the Security Interest in Movable Property Regulations, 2019 (drafted by Dr. Marek Dubovec) SIMPA establishes the Movable Property Registry (SIMPO) launched in 2019 Insolvency Act was amended in 2022 to prioritize secured creditors over preferential debts. Also amendment arrangement/administration financing- a company in administration/a bankrupt can access credit. Security Interest in introduced post
Reforms (cont.) The Traffic and Road Safety Act was amended in 2020 for the Registrar of security interests to take charge of security interests in motor vehicles as opposed to the Chief Licensing Officer at the Ministry of Works and Transport (implemented in December 2023) Central Bank Digital Currencies (CBDCs) is at the research and development phase (Bank of Uganda in September 2024 released a Consultation Paper on CBDCs).
Achievements From a manual register to an electronic register. First online register at URSB (providing end to end registration services). Increased uptake of registration services Collateral registry now integrated with the motor vehicle registry. Registry data now being consumed by different Government entities to plan for the country (the Central Bank, Ministry of Finance & Planning, National Planning Authority) Attracting support from International Organizations
Challenges Dual Companies Act increases the cost of borrowing Low interest in movable asset-based lending by top-tier lenders (10% of notices by commercial banks) and key government institutions like the Central Bank. Handling of non-serialised collaterals e.g. Household items, livestock etc. ( traceability and management) Complex and lender-unfriendly procedures e.g. sale by public auction only, court order requirement. Ecosystem around some Intellectual Property Rights perfection framework for debentures in the predictability, identification, assets still developing.eg.
Challenges (cont.) With the availability of a Credit reference bureau in Uganda, SIMPO is an added cost to the financial institutions supervised by the central bank (Bank of Uganda). Limited Internet coverage High levels of computer illiteracy among some lenders, especially tier 4 lenders upcountry. Lean budget New assets like digital assets, verified carbon credits, CBDCs still a dream
Efforts to promote secured transactions reform URSB is championing the establishment of a regional platform called the African Collateral Registry Forum (ACRF) for collateral registries in Africa, where members can; a. Liaise, cooperate and discuss transactions in Africa, b. exchange information and ideas on members registry systems, and identify challenges that are seen to impede the efficient and effective management of registries, c. Review the latest developments in various collateral registries, d. Network through which secured transactions professionals in Africa can share ideas, benchmark their performance and practices along with gaining fast access to unique experiences, and e. liaise with other international organizations on registry matters. matters on secured registry management
END Thank you for listening
