It is becoming increasingly clear that micro financing is one of many ways of fighting rural poverty in Uganda. This approach enables the rural poor communities to have direct access to financial credits, savings programs, insurance and other basic financial needs.
Non profit and non governmental organizations, small credit union finance facilities, private investors and most recently, social investors allow rural poor to obtain small amounts of loans at no costs or reasonable and affordable interest rates, which are easily absorbed, as most of these loans are given to groups of people, who borrow as a team under a set of strict agreements, which must be honoured by all participating members, to ensure compliance of timely loan repayments.
Reliable financial records from key micro finance lending operators indicate that, small loan repayment success rate now stands at around 80% to 90%, in a number of developing countries throughout the world.
There is also sufficient evidence to suggest that most of these success rates are achieved by women, thus helping to increase the credibility of poor rural women.
Successful micro financing has improved lives of millions of poor households, increasing women’s power to control resources, make independent decisions and command more respect, while improving the quality of life and education for their children and for themselves.
In West Nile sub-region of north western Uganda, micro financing is still a new form of financing option, for those who cannot afford or do not qualify for regular bank loans, especially the rural poor.
There is need to reach out to more rural small holder peasant communities, with such new and innovative financial programs, so that many more households can benefit from such initiatives.
It is one of our ambitious plans at Project Green Villages Africa Institute, to be able to provide more peasant farmers and all other small businesses operating in rural communities, with such alternatives of reliable, but closely targeted and affordable financing, so that more rural community members have the opportunity to improve their incomes, livelihoods and lives, in a sustainable way.