The economy of Uganda is traditionally based on agriculture (80% of the active population), in particular on coffee; it is developing slowly despite an often unfavorable regional context.
The institution:
Since its creation in 1994, UGAFODE has mobilised resources to provide affordable primary financial services to its clients. UGAFODE’s mission is to transform the living conditions of Ugandans, economically and socially.
Impact:
UGAFODE offers inclusive financial and non-financial services to empower the Ugandan people, especially in rural areas, through well-designed and tailored financial products and offerings to facilitate economic growth and development.
Each month, the International Labor Organisation (ILO) publishes “Social Finance Brief”, a publication that traces the journey of financial service providers around the world. In the January 2022 edition, the ILO documented the journey of the Uganda Agency for Development Limited (UGAFODE), an organisation supported by the Gramen Crédit Agricole Foundation.
UGAFODEis one of the microfinance institutions benefiting from a programme launched by the Foundation, the United Nations High Commissioner for Refugees (UNHCR) and the Swedish International Development Cooperation Agency (Sida) to promote financial inclusion and non-financial assistance to refugees and host communities in Uganda.
Through the programme, UGAFODE opened a mini-branch in the Nakivale refugee camp in Uganda. It received financial support for the opening of the branch in Nakivale and technical support, coordinated by the Grameen Crédit Agricole Foundation, to develop a range of products and services adapted to the needs of refugees.
The ILO Social Finance Brief describes the evolution of UGAFODE’s decision-making and operational process to become an actor of inclusion serving refugees and host communities. UGAFODE is an example of good practice for the microfinance sector and a great story of the impact of the action of the Foundation and its partners in the field.
UGAFODE Microfinance Limited (MDI) has opened a mini-branch in Nakivale Refugee Settlement, Isingiro district. The microfinance deposit-taking institution, which is regulated by the Bank of Uganda, is pioneering financial inclusion for thousands of refugees.
The initiative is aimed at building sustainable livelihoods, resilience and self-reliance among refugees in the settlement and host communities. This follows a successful pilot scheme of financial inclusion for refugees in Kampala. Under the project, refugees continue to access credit, savings and money transfer services.
During the pilot phase, UGAFODE adjusted its policies and procedures, including document requirements, such as identification (Refugee ID issued by the Office of the Prime Minister — refugee department). “Serving refugees fits in well with our mission of transforming lives of the low income, but economically active population. The refugees are economically active and have financial needs like any other person and deserve utmost attention,” Shafi Nambobi, the UGAFODE chief executive officer, said recently. He commended the Office of the Prime Minister — refugee desk for being instrumental in the success of the initiative. He also hailed the United Nations High Commissioner for Refugees and the Swedish International Development Co-operation Agency which through the Grameen Credit Agricole Foundation supported the project to set up a mini-branch in Nakivale.
Nakivale settlement hosts over 100,000 refugees from 13 countries. Most of these are engaged in agriculture and trade. “With the Nakivale branch we shall extend financial services to smallholder refugee farmers and host community members, hence improve their household incomes,” Nambobi added. According to Nambobi, the institution plans to roll out financial services to refugees in other settlements in the future.
According to a cross-section of refugees, UGAFODE Nakivale branch saves them from travelling long distances to access financial services in Mbarara or Isingiro. “With the establishment of this UGAFODE branch in our camp, financial services have been brought to our backyard, we can now be served easily,” one of the refugees said. Another refugee said previously due to poor roads, one needed to spare a day just to go to the bank. They pointed out that the branch will help them save on transport costs and time wasted traveling.
Further information on the Financial inclusion refugees programme here.
During the first quarter, the Foundation makes 5 new investments in Africa
During the first quarter of 2019, the Grameen Crédit Agricole Foundation stepped up its presence with its African partners with the granting of five new financings, notably in the form of senior loans. As part of the African Facility programme, it has provided a loan in local currency equivalent to € 800,000 to Eclof Kenya, a microfinance institution that provides financial and non-financial services to micro, small and medium-sized enterprises in the country. while actively promoting savings. To date, the institution that finances 58% of women, has over 30,000 clients, 60% of them located in rural areas.
Also in East Africa, the Foundation has granted a new loan in local currency equivalent to €1 million to UGAFODE, a Ugandan microfinance institution whose main mission is to offer its clients affordable primary financial services. The institution currently has 17,300 clients, of whom almost 20% are women and about 80% are in rural areas.
In West Africa, the Foundation has granted a new loan to Togolese microfinance institution Coopec Sifa for a total amount in local currency equivalent to € 305,000. Coopec Sifa, which is funded under the African Facility programme, is a microfinance institution that offers small loans to its nearly 38,000 clients, mostly women (86%) in the north of the country.
In addition, ACEP Burkina has also been granted a new loan equivalent to €2.3 million in CFA francs. This microfinance institution, a partner of the Foundation since 2016, specialises in financing microenterprises and very small businesses in urban centers and near suburbs. It currently has 12,300 clients, 20% of whom are women.
Finally, in Senegal, the Foundation has strengthened its partnership with Laiterie du Berger, of which it has been a shareholder since 2010, with the granting of a loan in the form of ashareholders’ current account, for an amount in CFA francs equivalent to €229 000. Laiterie du Berger is a social company that collects milk from Fulani herders, in the North of the country, and transforms it into yogurts and other dairy products that are sold under the brand Dolima.
At the end of March 2019, the Grameen Crédit Agricole Foundation had 40 partners located in sub-Saharan Africa, which represents 42% of the Foundation’s commitments at the end of the first quarter.
For more information on the Foundation’s partners, click here.
