Uganda and Japan are exploring new areas of cooperation in microfinance, youth enterprise, innovation, green financing and digital financial services as the two countries seek to deepen their development partnership.
State Minister for Microfinance, Shartsi Kutesa Musherure, held discussions with a Japanese delegation led by Takahashi Misako, the Director General and Assistant Minister for African Affairs, on Sunday.
Minister Musherure commended Japan for its sustained support to Uganda through bilateral programmes, particularly in health, education, refugee welfare and infrastructure development.
She said the Japan International Cooperation Agency (JICA) had played a key role in supporting major national infrastructure milestones.
A key focus of the discussions was the Parish Development Model (PDM), which the minister said had reached 3,783,108 beneficiaries by September 2026.
Government has capitalised the Parish Revolving Fund with about Shs4.317 trillion for 10,589 PDM SACCOs across the country.
“The programme is therefore no longer simply a small loan initiative. It is becoming an important platform for bringing millions of Ugandan’s into the formal financial and productive economy,” Minister Musherure said.
She said Uganda was seeking Japanese expertise, technology and investment to strengthen community-based financial institutions and improve access to affordable financial services.
Under Uganda’s National Financial Inclusion Strategy II, 2023-2028, government is prioritising physical and digital access to financial services, digital financial services, consumer protection, financial literacy and inclusive green finance.
Minister Musherure said the strategy was being implemented through programmes such as PDM and Emyooga, alongside private-sector initiatives.
“Uganda does not only view microfinance simply as the provision of loans but wants to build a sustainable financial ecosystem in which ordinary Ugandans can save, access affordable credit, invest, insure themselves and manage risks to grow their businesses,” she said.
She proposed increased cooperation in the digitalisation of SACCO operations, development of sustainable savings products, strengthening internal controls and financial management, and training of SACCO managers and leaders.
Minister Musherure said Uganda could draw lessons from Japan’s cooperative experience to strengthen its community-based financial institutions.
The minister also proposed the establishment of a Uganda-Japan Youth Enterprise and Innovation Facility to combine enterprise financing, technical and business skills and digital technology to support young entrepreneurs.
JICA has previously supported Uganda’s start-up ecosystem, with 10 Ugandan start-ups from seven industries joining an acceleration programme in 2024.
The two sides also discussed green and climate finance for micro enterprises, including solar energy for rural businesses, solar irrigation and clean cooking technologies.
Takahashi, who was accompanied by Japan’s Ambassador to Uganda, Sasayama Takuya, said Japan’s engagement with Africa is guided by three pillars: promoting peace, creating a virtuous cycle of growth between Africa and Japan, and building, through co-creation with the next generation, a society where everyone can experience prosperity.
She said the pillars were relevant to Japan-Uganda relations and that her country wanted to promote mutually beneficial cooperation in areas including trade and investment, supply chains, logistics, regional connectivity, human resource development, science, technology and innovation.
On natural resources, including critical minerals, Takahashi said Japan wanted to maintain dialogue with Uganda to identify potential areas of cooperation.
The discussions come as Uganda seeks to expand financial inclusion and create more opportunities for young people and small businesses through access to capital, technology and skills.
