Microfinance Programme Update
TUSP Women’s Microfinance Programme’s first cycle was launched in May 2017. The aim of the programme is to provide local businesswomen in Naminsindwa District access to financial capital that will allow them to start their own business or grow existing ones.
Over the years, TUSP has sought to refine and improve the approach, which is modeled after the highly successful Microfinance Programme created by Women’s Microfinance Initiative (WMI). WMI has been working with women on a village-level scale in rural areas of East Africa (Uganda, Kenya and Tanzania) for over 10 years.
Based on the WMI model, TUSP delivers a comprehensive loan programme that offers women from Bumbo, Bukokho and Magale villages in Namisindwa District successive interest-bearing, six-month term business loans (collateral free), ranging from 300 000 UGX to 500 000 Ugandan Shillings (£60-100). Borrowers in 10-member solidarity groups cross-guarantee each other's loans, receive skills and business training, peer mentoring, technical support and on-site follow up. During each six-month cycle, borrowers make ten repayments to pay back their loan with a 10% flat interest, which covers operating costs, including a Local Programme Coordinator and Administrator. At the beginning of every cycle, the borrowers attend a WMI borrower training where marketing, business operations and management concepts are taught to refresh and prepare the borrowers.
Following every cycle, TUSP aims to survey borrowers to assess the impacts of the Microfinance Programme. As we have just concluded our sixth loan cycle, the borrowers (20 women) who progressed to the seventh cycle were surveyed to determine the impact of the prior cycle. We are delighted to share some of the results of the sixth loan cycle despite the hardships that were faced due to the Covid-19 pandemic, which forced a 6-month payment holiday in mid-2020.
An analysis of the survey results reveals that after receiving their loans:
100% of the women reported that it had a positive impact on their lifestyle
95% of the women surveyed reported an increased family income
95% of women reported improved living standards
68% of women reported being able to pay school fees
We also wanted to provide a testimony from one of our women who performed extraordinarily well in the last cycle, despite the pandemic. Muteno Mary has been with the MF Programme since it’s first cycle in 2017. She currently serves as the Program Administrator and owns and operates a clinic. Mary has six children, all of whom she is able to send to school and pay fees on time. Mary has reported that since the last loan cycle her family’s income has increased, she is very united with her husband, and she even purchased a plot of land and built a house which she now rents for additional income. Not only that, but the loan has allowed her to buy livestock (goats and cows) which she breeds and sells. Her goals for the future are to continue diversifying and growing her businesses.
We are incredibly proud of all of our borrowers and excited to see how the seventh loan cycle continues to improve their and their families lives. We are also grateful to WMI for their continued support over the years. Good luck, ladies!