An analysis of the role of the security interest in movable property act in improving access to finance for female entrepreneurs in Uganda

Abstract

This study examines the role of the Security Interest in Movable Property Act, Cap 293 (SIMPA) in improving access to credit for female entrepreneurs in Uganda. Despite reforms aimed at modernizing the secured transactions regime and broadening the collateral base to include movable assets, women entrepreneurs continue to experience structural barriers to finance. The study adopts a qualitative methodology with a strong doctrinal component, complemented by empirical insights from interviews with women entrepreneurs and key actors in the financial and regulatory sectors. It analyses how the legal framework under SIMPA addresses collateral constraints, evaluates its implementation, and draws comparative lessons from Kenya, Nigeria, and Ghana. Findings reveal that while SIMPA has expanded the scope of acceptable collateral and streamlined the perfection and registration of security interests through the Security Interest in Movable Property Registry System (SIMPRS), women’s access to credit remains limited by persistent socio-cultural norms, low financial literacy, inadequate institutional capacity, and risk-averse lending practices that still favour land-based collateral. The study argues that effective realisation of SIMPA’s objectives requires gender-responsive enforcement, widespread awareness creation, and harmonisation of collateral registries to support inclusive financing. It concludes that legal reforms alone are insufficient unless supported by institutional strengthening, targeted capacity building for lenders and borrowers, and integration of gendersensitive policies that operationalise financial inclusion. The paper recommends specific legislative, institutional, and policy interventions to ensure that Uganda’s secured transactions framework translates into tangible economic empowerment for women entrepreneurs.