Microfinance groups in Namasindwa District
(Village Savings and Loans Associations)
Intervention area: Microfinance
Situation: Bumakenya Village is situated on the outskirt of the Namasindwa District, bordering Kenya. It is by far Seeds's most remote project. The closest commercial bank is situated about 3 hours from this 90% agricultural area.
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 through a community-managed programme.
Beneficiaries: Families 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.
Results: By 2018, 40 direct beneficiaries (20 men and 20 women) have been trained and monitored through our programme. With an average household of 6 children in Uganda, this extends to about 250 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.
The Uganda School Project (TUSP): with various rural education and health projects since 2015, TUSP has decided to launch with us their microfinance branch in 2017 with the creation of 2 VSLA groups.
Budget: 225 € for the formation, training, monitoring of 2 groups as well as for the training of 1 local volunteers now qualified for any VSLA trainings.