This is a micro-enterprise loan project where needy people 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. Candidates are from Wanale, a deprived rural community in Eastern Uganda. They are placed into groups of 5 people for accountability and are managed by our Ugandan Partners who live in the same region. Further loans are granted to new participants, as money is repaid by initial participants.
WHAT WE LIKE ABOUT IT
These loans will be distributed to groups rather than individuals so the whole rural community of Wanale (near the town of Mbale in Eastern Uganda) will benefit. As money is repaid it is re-loaned to new participants. This project is being implemented as a result of the people of Wanale seeing the success of a recent economic empowerment project in the nearby community of Mooni, and asking if it could be run in their community also. This means the people are already proactively looking for ways to break out of poverty and better their lives. The project in Mooni (also an Entrust-funded project) is on it’s 3rd cycle of loans and the community has been transformed – we are excited about the possibilities in Wanale!
The budget in local currency amounts to 76,878,500 Ugandan Shillings
The funding covers: The costs of loans (approximately $AUD165) to 150 people to be repaid over 18 months, training, selection of loan recipients, venue hire, stationary and a basic wage for three people who will 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.