Financial inclusion
SIDI capital financing
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Partner description

UGAFODE is a central bank-regulated MFI that can offer savings and credit services, and has access to a network of banking agents in addition to its 300-strong staff. Although not the largest in its category, it stands out for its strong rural presence (13 branches out of 23), its substantial agricultural credit offering (over 50% of its loan portfolio) and its significant growth potential.

Country and/or business sector context

Uganda is a relatively politically stable country, with a large and varied agricultural potential and a predominantly young population, and is not one of the countries most at risk from climate change according to the Germanwatch ranking. The lack of political alternation, inequalities resulting from corruption (ranked 146th/180th by Transparency International for perceptions of corruption) and economic policy (little infrastructure, public services or redistribution), weak industrialisation, lack of environmental policy and FATF grey list status are the most important risk or limiting factors for this country, ranked 166th out of 189 countries for HDI.

Partner impact

UGAFODE offers its services to more than 60,000 savers and 15,000 active borrowers. Outstanding savings are still insufficient to finance its lending activities. 80% of its customers are microentrepreneurs, borrowing mainly individually but also via groups. UGAFODE also finances SMEs, but 57% of its portfolio is focused on agriculture. A great deal of attention is paid to gender, not only in the services it offers but also in its staff, management and governance.