This study deals with Uganda’s national strategy, which was announced in 2013 and implemented in pilot projects, to increasingly formalise and protect land rights. In addition to protecting the land rights of a large number of rural households, the formalisation of land rights was also intended to release economic potential. For example, the commodification of land can enable the sale of land parcels, but also loans secured on them. This potentially creates easier access to financial services for previously financially excluded households and rural businesses. The resulting nexus between the formalisation of land rights and the access to financial services was examined in the survey in central Uganda, where the mailo land rights system is predominant, and in the eastern part of the country for customary land rights. On the one hand, the impact of different land rights systems on access to financial services was elaborated, and on the other hand, the current situation of the rural financial market was highlighted.

The study is linked to the implementation of land rights formalisation by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The project shows that any intervention in the field of land rights in Uganda must follow a highly conflict-sensitive approach and can only be successful if it involves local authorities and stakeholders. In particular, the approach chosen by GIZ to raise awareness in rural areas can be described as good practice in development cooperation. A particular challenge is the sustainability of the implementation. Formalisation of land rights requires extensive strengthening of decentralised capacity as well as ongoing subsidisation by the Ugandan government and / or international partners.

The study of the nexus shows or anticipates that the formalisation of land rights can and will indeed improve access to financial services. However, it remains questionable whether this will also have poverty-reducing effects from a development policy perspective. Financial literacy is described as very low in rural areas. As all individual loans are secured with land as collateral, there is a risk of land loss due to over-indebtedness. Accordingly, on the basis of the survey, the researchers argue for accompanying regulation in the financial sector in order to cushion the risks for vulnerable population groups accordingly.