Buganda Land Board Chief Executive Officer Kyewalabye Male (Pictured) has advised the public to use their land to rise from poverty by obtaining land titles, which they can use to borrow money from banks.
Male said that many Ugandans should appreciate that land is still the most prevalent form of collateral used by people and companies to acquire the physical cash to set up a number of investments. However as land economists observed that land adds value by almost 100 percent from the day it acquires a title.
According to Male, whereas most financial institutions prefer land titles as a form of collateral, fer only 700,000 out of the estimated 4million Ugandan households have land titles.
Male said that over five million people are on the Kingdom land but that less than 1% have titles.
“We believe that more people would have wanted to access such services from different banks but some of them are financially constrained, hence the need for assistance to get both the title and access to the credit facilities,” added Male.
Male noted that in 2010, Buganda Land Board launched the revolutionary Lease Access Financial Initiative [LAFI] which Centenary Bank embraced to offer credit to borrowers.
Since the LAFI was initiated, Male says some 331 have been delivered to financial institutions as collateral.
He emphasized that Buganda Land Board has successfully carried out a mass registration and mass survey exercise of tenants on Kabaka’s land. He said this provided the initial step to the leasing process which has boosted the position of the Lease Access Financing Initiative[ LAFI] scheme.
“We have so far registered 100,000 tenants who are eligible to kick start this LAFI Scheme and a detailled digital database has been derived from the physical files. This will be used in making search reports before each loan is disbursed to find out the status of the clients’ Kibanja.