Microfinance groups in Bududa District

(Village Savings and Loans Associations)


Intervention area: Microfinance


Situation: With no town in the District, 100% of Bududa's population lives in very rural zones along the slopes of the Mount Elgon area. With 97% of the households directly engaged and derive their livelihoods in agricultural activities, there is not a single commercial banking institution in the District. Furthermore,
the road system is exclusively constituted of « mud roads » which makes travelling to Mbale, the closest city, a difficult and long journey. Alike the rest of the country, 63% of the population is under 19yr, which is an age bracket of absolute dependency. In addition and because of its very high population density and consequent land deforestation, Bududa suffers from major deadly landslides. 


Needs: This part of the population needs to access these resources within their communities as well as receive advice on how to use them efficiently.


Project objectives: Increase the capacity of impoverished rural households to manage their financial resources and withstand shocks to their livelihoods by providing access to basic financial services such as savings and credit, so as to achieve autonomy of these families through a community-managed programme. 


Beneficiaries: Farmers living below the poverty line (earning less than $1 a day).


Main activities: 1) To provide microfinance & VSLA training as well as adult learning techniques to the volunteer of our partner organisation ; 2)  To provide the financial resources needed for the development of these VSLAs, such as covering the overall costs of trainings and basic working stationaries, 2) To support the implementation through technical assistance provided by Seeds volunteers.




In 2018, working as partners with the Bududa District Farmer Association in the Bududa District, we created 22 groups, each composed of 40 farmers, mainly women, which, by extent has changed over 880 individuals' future prospects. With an average household of 6 children in Uganda, this extends to about 6160 indirect beneficiaries. Furthermore, counting on the strict methodology and policies implemented inside the VSLA groups, the programme has prevented bad loan repayment and fostered good governance practices.

In 2019, Seeds & BuDiFA renewed their trust in each other, leading to the creation of 40 additional saving groups and reaching 1600 individuals.


The Bududa District Farmer Association (BuDiFA): Since 2016, BuDiFA is trying to mobilize the District's population around their Farmer Association project. Due to their lack of financial capital, most of their projects had only remained confined within agriculture and business counseling. The creation of saving groups amongst their members will help them mobilise financial ressources for the development of their own projects, including the future creation of a credit cooperative, their end goal.

Budget: 11.780€ for the formation, training, monitoring of 62 groups as well as for the training of 16 local volunteers now qualified for any VSLA trainings.