This project is in Bufombo village, a deprived, rural village in Eastern Uganda and follows on from a successful similar project in nearby Wanale. It is a one-year micro-enterprise loan project where needy villagers are selected, trained and supported with a financial loan. The loans and training are made available to the active poor who are already practicing some form of income generation but are struggling to maintain a sustainable living. They are placed in groups of five for accountability and support and are managed by our Ugandan partners who live in the same region. An elected leader will represent them to the overall leadership.
WHAT WE LIKE ABOUT IT
The loans will be distributed to groups rather than individuals so the whole community benefits. The project targets 150 people to start with. As money is repaid it is loaned to new participants. Others who have an interest in doing business but are not already practicing some form of business will undergo some training before they can access loans. Because the Bufombo villagers saw the project was successful in Wanale, they are engaged and are pro-actively seeking a way to break the cycle of poverty and better their lives. We have great partners with excellent experience to undertake this project.
The funding covers the cost of loans to 150 people to be repaid over 18 months. This includes training, selection of loan recipients, meals during training, stationery and a basic wage for three people who administer the project.
Uganda is an extremely poor country and most of the population relies on subsistence agriculture. Those who are not officially poor are still vulnerable. As in most developing nations, credit availability is limited, particularly at the micro-level and in rural areas where it is most needed to enable the poor to begin the climb out of poverty.