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Opportunity Bank Uganda Limited

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Opportunity Bank Uganda Limited (OBUL), is a Tier II credit institution in Uganda. It was previously registered as a commercial bank by the Bank of Uganda, the central bank and national banking regulator.[5] The institution received a commercial banking license on 25 September 2019.[3]

Opportunity Bank Uganda Limited
Company typePrivate
IndustryFinancial services
Founded1995; 29 years ago (1995)
Headquarters1259 Old Kira Road
Kamwokya, Kampala, Uganda
Key people
Phillip Karugaba
Chairman[1]
Emmanuel Tineyi Mawocha, CEO[2]
ProductsLoans, Savings, ATM, mobile banking
Total assetsUS$36.3 million (USh132 billion) (2019)[3]
Number of employees
365 (2015)[4]
WebsiteHomepage

The Bank of Uganda gave OBUL between 1 April 2024 and 30 June 2024 to re-organize as a Tier II institution, close all customer checking accounts and cease dealing in foreign exchange.[6]

Location

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OBUL's headquarters are located in Opportunity House, at 1259 Old Kira Road, in Kamwookya, a business and residential neighborhood within the city of Kampala, Uganda's capital.[7] The geographical coordinates of the bank's headquarters are 0°20'43.0"N, 32°35'37.0"E (Latitude:0.345278; Longitude:32.593611).[8]

Overview

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Opportunity Bank Uganda Limited was a Tier I Financial Institution (Commercial Bank), licensed by the Bank of Uganda, the central bank and national banking regulator.[2][3] As of September 2019, the financial institution had total assets worth USh132 billion (US$36.3 million), [2][3] with shareholders' equity of about USh28 billion (US$7.7 million).[9]

In Q2 2022, the Ugandan Minister of Finance, in consultation with the Bank of Uganda, signed new regulations raising minimum capital levels for commercial banks from UGX:25 billion (approx. US$6.7 million) to UGX:150 billion (approx. US$40 million) by 30 June 2024.[10] Due to its inability to raise the minimum capital requirements as stipulated, OBUL was authorized to downgrade to a Tier II credit financial institution, whose minimum capital requirements of UGX:25 billion (approx. US$6.8 million) it met, at that time.[6]

History

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This microfinance institution was licensed in 1995 and began operations in 1996 as Faulu Uganda, a programme of Food for the Hungry International, a non-governmental organization. In July 1999, Faulu Uganda incorporated as a limited liability company in Uganda, becoming Faulu Uganda Limited. Under that name, the company became part of the Faulu network in Uganda and Kenya. [11]

As a credit institution, it is not authorized to offer checking accounts or deal in foreign exchange. The company was however authorized to take in customer deposits and to establish savings accounts. It is also authorized make collateralized and non-collateralized loans to savings and non savings customers. The company later became affiliated with Opportunity International and became a member of their network. Opportunity International specializes in lending to the poorest of the working poor. As of December 2015, the institution's total assets were valued at US$20.53 million, with shareholder's equity of US$7.86 million.[4]

In 2006, Opportunity Transformation Investments and Opportunity International Australia each purchased a 31.5 percent stake in Faulu Uganda Limited, giving Opportunity International a combined majority stake of 63 percent in the fourth largest microfinance institution in Uganda. In December 2009, Opportunity bought the remaining shares of Faulu Uganda, thereby taking outright ownership of the company. The financial institution was renamed Opportunity Uganda Limited.[12][13] In November 2011, the institution rebranded to "Opportunity Bank Uganda Limited".[14]

Ownership

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The company was owned by five different entities, as of October 2019.[2][3]In October 2020, TLG Capital based in the United Kingdom, acquired 49 percent shareholding in Opportunity Bank Uganda in exchange for an undisclosed consideration. MyBucks of the United States exited the investment.[1]

Opportunity Bank Uganda Stock Ownership
Rank Name of Owner Percentage Ownership
1 TLG Capital
49.00[1]
2 Opportunity Transformational Inc
39.00
3 Faulu Trust
7.14
4 Opportunity International Canada
6.06
5 Food for the Hungry Organization
1.01
Total
100.00

Branch network

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The branch network of OBUL has included the following locations:[15]

  1. Kira Road Branch - 80 Kira Road, Kamwookya
  2. City Center Branch - 14 Kampala Road, Kampala
  3. Kawempe Branch - 494 Block 204, Goshen House, Kawempe
  4. Nateete Branch - 715 Masaka Road, Nateete
  5. Owino Branch - Ovino Shopping Complex, 22 Kisenyi Road, Kampala
  6. Gayaza Branch - Gayaza-Kampala Road, Gayaza
  7. Nansana Branch - Hoima Road, Nansana
  8. Jinja Branch - 9 Skindia Road, Jinja
  9. Iganga Branch - 88 Main Street, Iganga
  10. Mbarara Branch - 90 Highway Street, Mbarara
  11. Masaka Branch - Edward Avenue, Masaka
  12. Kalagi Branch - Mukono-Kayunga Road, Kalagi
  13. Mubende Branch - 103 Lubanga Road, Mubende
  14. Head Office - 7A Acacia Avenue, Kololo, Kampala
  15. Mayuge Branch - Mayuge
  16. Mbale Branch - Mbale
  17. Lira Branch - Obote Avenue, Lira
  18. Kyenjojo Branch - Kyenjojo
  19. Hoima Branch - Hoima
  20. Mukono Branch - Mukono
  21. Kamdini Branch - Oyam
  22. Soroti Branch - Soroti
  23. Mityana Branch - Mityana
  24. Abaita Ababiri Branch - Entebbe

See also

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References

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  1. ^ a b c Samuel Sanya (9 October 2020). "TLG Capital acquires 49% stake in Opportunity Bank". New Vision. Kampala. Retrieved 11 October 2020.
  2. ^ a b c d Muhereza Kyamutetera (29 September 2019). "What Do We Know About Opportunity Bank, Uganda's Latest Commercial Bank, Which You Probably Did Not Know". Kampala: CEO Magazine Uganda. Retrieved 3 October 2019.
  3. ^ a b c d e Martin Luther Oketch (2 October 2019). "Opportunity raises commercial bank operators to 25". Daily Monitor. Kampala, Uganda. Retrieved 3 October 2019.
  4. ^ a b TMO (31 December 2015). "MFI Report: Opportunity Uganda Data As At 31 December 2015". Themix.org (TMO). Retrieved 14 October 2016.
  5. ^ Bank of Uganda (31 March 2023). "Licensed Commercial Banks As At 31 March 2023". Bank of Uganda. Kampala, Uganda. Retrieved 31 March 2024.
  6. ^ a b Dorothy Nakaweesi (27 March 2024). "Three banks downgrade to credit institutions". Daily Monitor. Kampala, Uganda. Retrieved 31 March 2024.
  7. ^ Alon Mwesigwa (19 March 2018). "Opportunity Bank Shifts From 'Elitist' Kololo to Kamwokya". The Observer (Uganda). Kampala. Retrieved 3 October 2019.
  8. ^ "Location of the headquarters of Opportunity Bank Uganda Limited" (Map). Google Maps. Retrieved 3 October 2019.
  9. ^ Julius Businge (23 October 2019). "New Kids In Banking". The Independent (Uganda). Kampala. Retrieved 20 November 2019.
  10. ^ Bernard Busuulwa (31 July 2023). "Uganda's new, higher minimum capital rules for lenders kick in, rattle investors". The EastAfrican. Nairobi, Kenya. Retrieved 31 March 2024.
  11. ^ Frank (2019-10-07). "Bank of Uganda grants licenses to Opportunity and Afriland Banks". AFRICA INC. - INSPIRING AFRICA'S BUSINESS LEADERS & ENTREPRENEURS. Retrieved 2020-05-19.
  12. ^ Scola Kamau (16 December 2009). "Faulu Uganda Rebrands to Opportunity Uganda". Daily Monitor. Retrieved 15 June 2014.
  13. ^ Vision Reporter (14 December 2009). "US-based Group to Take Over Faulu". New Vision. Kampala. Retrieved 15 June 2014.
  14. ^ Nicholas Kakungi (24 November 2011). "Opportunity Uganda Takes On New Name". Daily Monitor. Kampala. Retrieved 15 June 2014.
  15. ^ OBUL (14 October 2016). "The Branches of Opportunity Bank Uganda". Kampala: Opportunity Bank Uganda (OBUL). Retrieved 14 October 2016.
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00°20′43″N 32°35′37″E / 0.34528°N 32.59361°E / 0.34528; 32.59361

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