The Effect Of Covid-19 Pandemic On Access To Credit From Financial Institutions In Uganda

Abstract

Rationalizing the COVID-19 international public health crisis, this paper assesses the effect of COVID-19 pandemic

on access to credit from financial institutions in Uganda. The lockdown affected access to credit from financial

institutions by all regions, sectors, yet businesses plays a remarkable role towards the economic growth and

development of the economy. The study used a cross-sectional descriptive design and results revealed that there was

no significant difference between the average proportional of access to credit and the average proportional of no

access to credit in different regions as indicated by a p-value (0.0624), no significant mean difference between the

proportional of large enterprises and SMEs that had access to credit and the proportional of large enterprises and

SMEs that had no access to credit during the COVID-19 at 5% level (P-value=0.5542, Mean difference=9.75%) and

no significant difference between the proportional of sectors that had access to credit and the proportional of sectors

that had no access to credit during the COVID-19 period in Uganda at 5% level (P-value=0.2794, mean

difference=6.5%). The study recommended that there is need to extend financial support to eastern region,

manufacturing and services sector and BoU to encourage financial institutions to extend more credit to small,

medium, and micro enterprises.