Uganda is known as the ‘Pearl of Africa’. When it became independent in 1962, it was one of the most vibrant and promising economies in Sub-Saharan Africa. However, since then it has faced economic mismanagement and civil wars, which have stifled the progress of this once promising country.
Since the liberalisation of the financial sector in the mid-1980s, Uganda’s microfinance industry has grown to become a key factor in the country’s plans for economic development. However, a 2010 FinScope survey showed that only 28% of adults in Uganda have access to formal financial services. Moreover, only 22% of people living in rural areas have access to credit, compared to 47% of the urban population.
Around 35 million people live in Uganda, a quarter of whom live in poverty. Uganda remains a very poor country and far from the middle income status it aspires to achieve.
We have planned the following short and medium term initiatives to meet the changing needs of our borrowers.
- Transform our MFI into a micro deposit-taking institution that provides savings services.
- Refine the cash disbursement method
- Promote the use of mobile money collection
- Mobile Money Banking
- Develop a marketing unit
- Make improvements based on customer satisfaction reviews
- Re branding All Branch Premises to VisionFund Uganda Brand
- Opening up field offices in all areas of operation
- Rolling out PPI to all branches
Beatrice Alwenyi 38yrs is a mother of four children Brian, Junior, Joan and Emmanuel who are orphans and formerly a resident of Poyem village in Iyolwa ADP. She is engaged in buying and selling of mainly cassava produce and sometimes cereals from farmers in and around Tororo. She has managed this business for over four years after the death of her husband. “I decided to start this business after the relatives of my late husband chased me away from our land with all my children” Beatrice explained sadly.
From the small/little proceeds of the revenue she got from her small business, Beatrice bought a small piece of land and also managed to keep her children in school.
For quite long Beatrice had increasing challenges of insufficient funds for her business and home management as a widow mother. “I thank God for World Vision Tororo for having brought VisionFund Uganda in our area” Said Beatrice happily.
In the late 2012, Vision Fund Uganda conducted massive community sensitization together with World Vision Tororo in all ADPs and Beatrice was amongst the first potential beneficiaries to qualify for the VFU micro loan in the ADP.
She then enrolled for a six months USD 312 micro loan which she invested in her produce business.
After paying off the first loan well and growing her business, Beatrice enrolled for a ten months USD 585 micro loan which she is currently servicing and paying on time.
“Iam so happy and motivated that out of the VisionFund Uganda micro loans, i have managed to grow my business, paid school fees for my children and have shifted from a rental house to my own house after completing it with the VFU loan” Said Beatrice.
Beatrice’s future plan is to grow further her business as she supports other farmers in the area and to educate all her children through university.
Beatrice Alwenyi and some of her children in front of her Beatrice in her produce stall (Her business) where she invests VFU
newly constructed home out of the profits she got as a result of loan money and uses the profits to educate her children and take
borrowed funds from VFU; of her household