Refugees and financial freedom: Not yet uhuru

Refugees and financial freedom: Not yet uhuru

By Joseph Sanjula Lutwama and Brenda Banura

The state of refugee’s financial inclusion
This year’s World Refugee Day theme is finding freedom. An enormous aspect of freedom is financial independence. Access to formal financial services goes a long way in facilitating financial independence given its potential in supporting one to generate more income.

But it is not yet uhuru, for refugee communities in Uganda going by the recent findings from a survey of refugee communities in Uganda commissioned by the Financial Sector Deepening Uganda (FSD Uganda). According to this survey, six out of every ten refugees keep their money at home. About half of the refugee community saves with informal savings groups. Less than two out of every ten refugees save with either a formal bank or Savings and Credit Cooperative Organisation (SACCO). This informality among the refugee communities not only puts their financial investments at risk but also limits their ability to maximise their potential to tap into economic opportunities.

FSD Uganda’s endline report for the Financial Inclusion for Refugees (FI4R) project reports that not more than two out of every ten refugees have access to formal financial services. The rest either keep their money at home or with village saving groups. It also reports that about a third of the refugees (29%) use mobile money.

While the village loans and savings groups are convenient and easily accessible, they are not regulated, putting their hard-earned savings at great risk of theft and all manner of misconduct.

A case for formality
Since they are regulated, formal financial institutions provide more customer safeguards, and their deeper pools of capital enable businesses, and individual customers to create a path for steady growth and development.

Unlike community-based informal savings and loan groups which are largely socially driven, and heavily reliant on informal social community networks, formal financial institutions are not constrained by capital, and human capabilities to support their customers on their journey of growth. There are more opportunities for growing to scale for customers of formal financial institutions as they can leverage the different networks and the diverse product portfolios these institutions provide.

A path to formal identification
It is therefore critical to support the refugee communities to chart a path towards formality to enable them to tap into the immense opportunities the formal sector provides. This starts with acquiring a secure, verifiable, and recognised identification. For a long time, the refugee community has struggled with the challenge of identification with no standardised form of identification for a refugee. Identification is the first entry point into the formal sector as formal institutions are only comfortable dealing with people they can identify and hold accountable. Considering that refugees are always on the move, the identity risk becomes even more critical as one is not certain that the person, they are dealing with will not have moved to another location the next day.

The office of the prime minister and the United Nations High Commission for Refugees who are responsible for the welfare of the refugee community in Uganda, have since zeroed down on a uniform identification for refugees in Uganda. They have gone further to provide formal financial institutions with access to the database of refugees in Uganda making it easier to verify and authenticate the identities of refugee customers. This has greatly enhanced the opportunities for accessing formal financial services in the refugee community.

Digitisation to unlock formal financing opportunities
Technology will also play a critical role in the formalisation of refugee communities. The high levels of access to mobile phones provide an immense opportunity to leverage the mobile telecommunications infrastructure to link the informal savings and loan groups to formal financial institutions. This creates a link to the formal financial system whilst maintaining the social fabric of the community groups.

As part of the Financial Inclusion for Refugees intervention, FSD Uganda and FSD Africa partnered with Rural Finance Initiative (RUFI) to digitise informal community savings groups. This enabled the savings groups to not only guarantee the safety of members’ savings on a more secure mobile digital platform than the metal boxes previously used but also increased access to formal financial savings through the group account with Centenary Bank.

Over the three-year partnership with RUFI, over 100 community savings and credit groups were digitised, and close to 2,000 members were able to receive formal credit.

Agent banking: bringing formal financial services closer to the refugees
Previously, refugees had to travel long distances to access financial services from formal financial institution branches, usually located far from the refugee settlements. However, the emergence of agency banking has made it possible to bring the services of formal financial institutions closer to the refugee communities.

While implementing the intervention, FSD Uganda and FSD Africa were able to test the efficacy of rolling out bank agents within the refugee communities and their impact on access to formal financial services. This was in partnership with Equity Bank which set up over 200 bank agents within the refugee communities. Over the three-year period of the partnership, Equity Bank enrolled a total of 108,391 refugee households on the Agency Banking Platform.

Over the same period, the bank made over 1 million digital payments to these households to a tune of over Ushs 120 million (USD 32,000). Much more headway was made with digital merchant payments reporting over Ushs 3 billion (USD 800,000) transacted through the Equity Bank digital platform.

Not Yet uhuru
Despite a clear demonstration of a need for formal financial services within the refugee communities, a lot more has to be done for the refugees to maximise the opportunities that come with formal financial services.

The agency banking points are largely utilised to receive cash transfers from the World Food Programme (WFP), which is not sustainable because development assistance is unpredictable. This was demonstrated by a reduction in the amount of cash transfers WFP was advancing the refugees in 2020, the amount could be reduced further.

The refugee communities need to be supported to engage in more formal economic activities that will generate more sustainable employment opportunities and income streams which will ultimately translate into higher levels of effective demand for a diversity of financial services from savings, credit, investments, and insurance to name but a few.

Further, digitisation continues to be a challenge due to the high levels of digital illiteracy among the refugee communities which lengthens the duration of the adoption of digital products. The cost of digitisation and digital transactions remains high which is further worsened by irregular network connectivity in the rural areas where refugees predominately reside.


Women’s financial inclusion and the tomato value chain

Women’s financial inclusion and the tomato value chain

By Anthea Paelo, Ph.D

Despite the proliferation of supermarkets and delivery apps intended to increase convenience whilst shopping, I refuse to give up my relationship with my market lady, Maureen. Maureen and I have an understanding. I buy fresh fruits and vegetables from only her, and she, in turn, provides me with the best produce available. She procures the right size of produce, at the correct level of ripeness, and at a price we are both comfortable with. I am also a frequent beneficiary of the odd pawpaw, watermelon, or jackfruit at no charge, earning Maureen my unwavering loyalty.

Many fresh produce shoppers in Uganda have a market lady. Aside from the produce, they provide additional customer care that makes them irreplaceable. Unsurprisingly, women have become the face of the fresh produce market everywhere. But are these women earning proportionate financial compensation from their role in the agricultural value chain?

In 2022, FSD Uganda, with support from the FSD Network’s Gender Corpro, commissioned a rapid gender assessment of Uganda’s tomato value chain. The study sought to identify opportunities and understand women’s roles in this value chain.

The assessment found that women were more visible in two areas of the tomato value chain: production and retail, i.e., farming and sale to the final consumer. Men were more involved in tasks requiring additional capital and labour investment. Their visibility was prevalent as aggregators and middlemen in the tomato supply chain.

Women’s visibility and presence in the production and retail segments are due to structural and social factors. First, women have limited ownership of land and other key assets. This limits their ability to access credit to purchase inputs and machinery to improve production outputs.

Second, women often lack the knowledge, experience, and networks to participate at the trading level as middlemen.

An additional challenge limiting women’s ability to participate in other, more lucrative segments of the supply chain lies in the limited time resources to engage in these activities at a commercial level. Women, on average, spend about 5.2 hours a day on unpaid domestic and care work compared to the 1.2 hours a day that men spend.

The benefit of market vending is that the capital requirement is small compared to the value chain’s input supply, production, and trading segments. Through their local Village Savings and Loan Associations (VSLAs), women can save and borrow small amounts of capital to put up stalls to earn small amounts of income. Additionally, they can still perform domestic tasks, such as childcare, because they are stationed in one place. Due to the highly competitive nature of the marketplace, women often focus on providing quality customer care to attract and keep customers.

While it may be some time before social norms that limit women’s ability to participate and earn from the whole value chain are overcome, some wins are possible regarding access to financial services. A key route is strengthening the VSLAs and Saving and Credit Cooperatives (SACCOs) through which many women access financial services. In January 2023, Uganda Microfinance Regulatory Authority (UMRA) Operational Guidelines for Self-Help Groups (SHGs) took effect. The guidelines aim to provide structure, promote fair and equitable practices, and provide financial stabilisation mechanisms to even small self-help groups.

A second opportunity arises in the growth of digital financial services. VSLAs and SACCOs can digitise their transactions and based on this information, develop credit scores that could be used for loans. Rather than depending on physical collateral or being limited by the resources of the savings group, women can borrow more significant amounts of cash for use in agricultural activities based on their behaviour and spending patterns.

With the developments in the legal framework and the uptake of technology for financial services, we may find increased visibility and participation of women such as Maureen in the tomato supply chain and other agricultural segments. Increased involvement of women across these segments increases their potential income and contributes to a more sustainable economic livelihood.



Entrepreneurial support organisations hold discussions on how to enhance their capacity to provide better quality business development services in Uganda

Entrepreneurial support organisations hold discussions on how to enhance their capacity to provide better quality business development services in Uganda

Entrepreneurial support organisations (ESOs) are critical entrepreneurship catalyzers and require specific support and guidance to act as impact multipliers for businesses. ESOs are faced with numerous challenges that hinder them from delivering quality support services.

It is on this basis that the Deal Flow Facility and Startup Uganda held a dialogue to validate the challenges faced by selected ESOs based on existing literature and co-create a capacity building intervention with participating ESOs. This event was attended by over 15 ESOs.

From the discussions, it was agreed that the challenges faced by ESOs differ based on the stage of growth of the business being supported. The cross cutting challenges raised revolve around the areas of skill/experience, failure to adapt to the ever-changing environment, and financial capacity.

A more detailed report on this dialogue covering the challenges and proposed solutions is being generated and will inform future interventions on how the ESOs can be best supported to deliver quality work.


The Role of Financial Inclusion in Bridging the Gender Gap

The Role of Financial Inclusion in Bridging the Gender Gap

By Caroline Agaba

The government of Uganda has made efforts to address gender issues for example through the development of a National Gender Policy in 1997. The policy provides a framework for addressing gender imbalances. Unfortunately, this policy was last reviewed in 2007 which demonstrates that more must be done to close the gender gap.

The gender gap manifests in different ways. One such way is that women have a lower social status than men. This means they have less power to make decisions, get an education, obtain a profitable job, and be independent.

What the data says

According to the 2022 World Bank Gender Statistics, in Uganda, the labour force participation rate is 67.6% and 72% among females and males respectively. The Sub Sahara Africa average of labour participation for women is 60.4%. Adult literacy in Uganda is lower among women at 74% compared to men at 84%. 25.1% of girls in Uganda complete lower secondary education compared to the Sub-Saharan Africa average of 43%. In terms of decision making only 51.1% of women participated in making major decisions in the household as of 2016 data. For asset ownership, 62% of women did not own a house compared to 44% of men.

This shows that gender inequality in Uganda revolves around education, asset ownership, and participation in the workforce. To close the gender gap, strategies to address these three key issues need to be developed.

One way gender inequalities can be addressed is through the economic empowerment of women through financial inclusion. Financial inclusion in and of itself may not be the sole solution to all the gender inequality issues in Uganda since many of them are rooted in social norms and beliefs about women and their role in society. However, there is evidence from various studies about how access to financial services can help close the gender gap in education, asset ownership, and labour participation.

How savings accounts can help.

In 2013, Silvia Prina conducted a study on banking of the poor via savings accounts in Nepal. In this study access to a simple, liquid bank account—with no opening, maintenance, or withdrawal fees—was randomly offered to a sample of 1,118 female household heads in 19 slums in Nepal. Through this experiment, the impact of access to the bank account on household saving behaviour, asset accumulation, expenditures, and income was assessed.

The study found that being offered access to a savings account strongly increased household investment in health and education, and the investment in human capital in the form of textbooks and school uniforms rose by more than 50%.

Education is a fundamental pathway toward social and economic progress. The study findings demonstrate that access to financial services empowers women to tap into the transformative potential of education for their children and themselves. This is done by using their savings to cover school fees, educational materials, and additional learning opportunities. Enabling women to invest in education through financial inclusion initiatives can help them break the cycle of poverty and create brighter futures for themselves and their communities.

Other findings from the study showed that access to the savings account increased monetary assets by more than 50%. In addition, total assets, which include monetary and non-monetary assets (consumer durables and livestock), grew by 16%. This suggests access to financial services can play a key role in helping women invest in their future and build up their assets thus closing the asset ownership gap.

Mobile money helps women.

Another study in Kenya titled The Long-run Poverty and Gender Impacts of Mobile Money by Suri T & W. Jack, showed that the impact of the introduction of mobile money in moving households out of poverty was particularly pronounced for female-headed households. The study estimated that the spread of mobile money helped raise at least 194,000 households out of extreme poverty and induced 185,000 women to switch to business or retail as their main occupation. The study suggested that the more pronounced impacts on female households, appeared to be driven by changes in financial behaviour—in particular, increased financial resilience and saving—and labour market outcomes, such as occupational choice, especially for women, who moved out of agriculture and into business. The results from these studies have important implications for policymakers and development organisations.

Financial inclusion plays a vital role in closing the gender gap and empowering women. By providing women with access to formal financial services, such as savings accounts, credit, and insurance, financial inclusion enables them to secure their economic futures, invest in education and healthcare, and start and grow businesses. It not only enhances their financial well-being but also fosters gender equality by breaking down barriers, challenging traditional norms, and promoting women’s economic independence.


The 2023 FinScope survey to get insights into the demand, access, and use of financial services is underway

The 2023 FinScope survey to get insights into the demand, access, and use of financial services is underway

The Bank of Uganda, in partnership with the Financial Sector Deepening Uganda, aBi Finance, and the Uganda Bureau of Statistics, is implementing the 2023 FinScope survey this July. A FinScope survey is a nationally representative survey that measures changes in the demand, access, and use of financial services.

The FinScope survey is being conducted in line with the forthcoming National Financial Inclusion Strategy (2023-2028) and intends to provide an indication of the state of financial inclusion in Uganda. It will also provide insights into attitudes and perceptions regarding money management, financial products, and services across demographics for adults 16 years or older.

The findings will guide government, regulators, and development partners as they implement aspects of critical financial sector frameworks including the National Development Plan III, the financial inclusion pillar of the Parish Development Model (PDM), and other sector strategies. It is also an avenue for financial service providers to understand their consumer base and innovate in response to current needs.

The 2023 survey includes a module on green financing aimed at understanding the agribusiness financial landscape and how the financial sector is adapting to concerns brought about by climate change.

Preparations for the survey have been concluded with a 6-day training for the enumerators. Fieldwork is scheduled to start on July 10, 2023, for 22 days. The survey will cover a representative sample of about 3,210 respondents all over the country. In addition, special interest groups such as People with Disabilities (PWDs) and Forcibly Displaced Persons (FDPs) or refugees will be covered.

At the end of the survey, a report will be compiled, and its findings will be shared with key stakeholders and the public to guide planning and discussion on issues related to the demand, access, and use of financial services.


Climate Adaptation Financing Practice: A Case Study of Bidhaa Sasa

Climate Adaptation Financing Practice: A Case Study of Bidhaa Sasa

By Joseph Lutwama and Douglas Karugonjo

The Climate Challenge
Uganda is among the world’s most vulnerable and least adapted to climate change countries scoring 166 out of 181 countries on the ND-GAIN Vulnerability Index in 2018[1]. Its vulnerability has been attributed to the huge dependency on natural resources provided by primary sectors such as agriculture, water, energy, and fisheries which are highly vulnerable to impacts of climate change. Historically, Uganda was mostly dominated by a tropical climate with a single rainy season in the north and two rainy seasons in the south. The effects of climate change are affecting the seasons with the country experiencing shorter or longer rains and harsher droughts – especially in the eastern and north-eastern regions[2].

Uganda’s most pressing agricultural risks are directly related to climate change: droughts, floods, crop/ livestock pests and diseases, post-harvest loss, hailstorms and thunderstorms, and other natural risks such as landslides. The lack of ownership and control over land and resources, and their disproportionate burden of unpaid care work, restricts access to finance, extension services, and technological innovation, especially for Ugandan women involved in farming.

These women predominantly prefer Village Savings and Loan Associations (VSLAs) to formal financial institutions for savings and credit. The high usage of informal services results in less consumer protection, fewer opportunities for women to build credit histories, and less access to structured services such as seasonal loans[3]. To enhance opportunities for women, an efficient strategy for climate adaptation is needed.

Bidhaa Sasa Building a Case for Climate Adaptation Finance
In 2021, FSD Uganda partnered with Bidhaa Sasa, to pilot a unique business model that leverages mobile money technology and group lending to enable women to access credit for energy saving household equipment and climate adaptation tools. Bidhaa Sasa is a Kenyan last-mile distribution and finance company operating in Uganda since 2019. It offers a range of household goods that improve the quality of life of rural families such as technologies for clean lighting, clean cooking, and climate smart farming.

Integration of mobile money technology
Bihdaa Sasa’s entire credit process hinges on mobile money technology, thereby opening a door for rural buyers to develop their digital financial footprint and potentially engage in formal financial service, often for the first time. Bidhaa Sasa’s exclusive use of mobile money coupled with its digital literacy training of clients helps it to get more rural households into the digital financial services ecosystem and increase their likelihood of accessing other financial services.

Tailored credit approach
The Bidhaa Sasa business model is built around rural women’s needs. It offers a tailored credit approach that makes relevant technologies for households and farming more accessible and affordable. Low-income rural women, who form the majority of Bidhaa Sasa’s customers, are typically unbanked and lack their own collateral. With the use of the group liability model, they can acquire both life improvement products and agricultural tools via payment plans for goods that typically save time or money (solar saves kerosene, LPG gas saves time, stoves save wood or charcoal, and the quality of indoor air and health of a family improves when using both technologies) while keeping credit risks low.

The model does not require collateral (the products act as collateral) and there are no credit checks conducted because most clients, particularly women, tend not to have credit histories. However, the social capital of clients that exists in villages is leveraged to ensure timely repayment. Clients are typically organised in groups of at least five and share the liability since all act as cross-guarantors. This group liability model is well understood by women who are already very active in several self-help or socially-minded groups.

This intervention enables rural households to improve their productivity at home and in their farms through ownership and use of relevant technologies. For example, an improved cookstove uses less than half the charcoal the user would normally use saving them up to $200 per year. In addition, the use of solar technology and improved cookstoves reduces or eliminates the use of non-sustainable fuels like kerosene and charcoal.

The quality of indoor air and health of the family improves when using solar for lighting and improved cookstoves for cooking. In rural Uganda for example, a single efficient charcoal stove can avoid 3 tonnes of CO2 emissions each year when continuously used.

From a climate adaptation perspective, Bidhaa Sasa also provides Purdue Improved Crop Storage (PICS) bags also known as hematic bags as part of their product portfolio. Hematic bags are an affordable and effective approach to minimising post-harvest losses for farmers. Hermetic storage is airtight and works by restricting organisms such as insects and microorganisms that can damage stored commodities from thriving in its internal atmosphere by keeping its oxygen levels low. Hermetic storage is also flood-proof.

The Impact
Over a two-year period, Bidhaa Sasa has been able to support 2,206 low-income customers access energy saving equipment and climate adaptation agricultural tools. Canvases and hematic bags accounted for the biggest proportion (42 percent) of the goods sold. Over 50 percent of Bidha Sasa’s customers have been women. The overall loan payment performance over the period stood at an average of 10.6 percent PAR >30 with the female slightly lower at 7.2 percent PAR >30.

It is clear from the case of Bidhaa Sasa that social networks within rural communities once integrated with mobile money technology can deliver positive climate adaptation and mitigation solutions for both rural households and their farms.


[1] The index summarizes a country vulnerability to climate change and other challenges in combination with its readiness to improve resilience.
[2] The International Organization for Migration (IOM), 2021
[3] Financial Protection Forum, 2019. VSLA: Village Savings and Loan Associations.


How to narrow the gender gap in digital agricultural platforms

How to narrow the gender gap in digital agricultural platforms

By Geoffrey Okidi
While digital agricultural platforms can boost farmer productivity, they also risk entrenching gender inequalities if not gender intentional. Research shows that only 25% of Sub-Saharan Africa digital agricultural platform users are women, and they are not served sufficiently.

Based on the best practices framework for incorporating gender into digital agricultural platforms developed by ISF Advisors and Value for Women (VfW) with support from Consultative Group to Assist the Poor (CGAP) (December 2022), this blog identifies four key opportunities to create shared value for platforms and the women that engage with them.

  1. Embedding gender into the organisational strategy: To become gender intentional, a good place to start is for the platform to develop a holistic gender strategy, with clear objectives and targets defined using their data. This will enable the platform to unlock new market opportunities, improve organisational performance, and reach scale more quickly. The gender strategy should include key performance indicators to assess progress towards targets, and measure success (e.g., active usage, disaggregated by sex, measured quarterly; percentage of women in leadership, measured annually).With the gender strategy in hand, the platform should then develop a gender action plan, outlining specific actions that need to be implemented to reach the gender goals outlined in the strategy (with roles/ responsibilities, allocated resources/ budget, and the timeline for completion of each action).
  2. Leveraging sex-disaggregated data for better decision-making: The collection and analysis of sex-disaggregated data is the typical starting point for increasing gender inclusion inside a company and through its products and services. Data can tell how many women a platform is serving, how well it is serving women, and the value being generated by women as customers and/or agents. Therefore, a systematic approach to data collection and data-driven decision-making can help platforms leverage their data for commercial and gender outcomes. Platforms can start to do this through the following:a) Target setting and prioritisation: Once a platform has defined their gender strategy and associated key performance indicators, they should establish a strategy-priorities-targets-measurement system centered around data. This will enable action on priorities.
    b) Understanding customer patterns: An important step is for platforms to sex-disaggregate existing data– such as customer ratings or satisfaction scores –to understand satisfaction levels for different sub-segments of women (and other users, such as men and youth). Platforms can also collect data through publicly available datasets, focus groups, and feedback pop-ups on the platform.
    c) Designing products: Insight into customer patterns from the preceding action can then be leveraged in the product design process. This could result in finding ‘quick wins’ (i.e., shifting land requirements from individual names to family names given barriers for women to access land) or more robust product shifts (i.e., designing products specifically for women
  3. Experimenting with women-focused innovations: Platforms can leverage their own data and industry leading practices to continuously innovate. A good place to start is by looking at the current platform offering with a gender lens to determine if there are any “quick wins” that can be achieved. Collecting user feedback on the offerings available and sex-disaggregating these findings could be helpful. Based on the context and platform model, there are promising platform innovations that provide inspiration. For example
    i. Use of in-person agents to increase registration for digital marketplaces (e.g., DigiFarm Village Advisors)
    ii. Use of interactive features, such as Interactive Voice Response technology, to make digital tools easier to use by digitally illiterate customers and to deliver capacity building and advisory to customers (e.g., Opportunity International Uganda)
    iii. Offering preferential terms to users earning income on the platform (e.g., zero registration fees, referral bonuses) as an incentive to onboard rural women customers (e.g., Jumia’s Women & Youth Empowerment Program)
    iv. Providing tailored training and services to increase the income-generating potential of women platform users (e.g., Copia’s asset financing product)Rural women should be embedded throughout the product and service design process. Concretely, this means including a representative sample of both men and women customers in market research efforts, testing prototypes with women, and collecting sex-disaggregated feedback.
  4. Increasing income generating opportunities for women as service providers: Evidence shows that women tend to be successful field agents. An IFC study of agent transactions in the Democratic Republic of Congo (May 2016) found that women were significantly more successful than male agents in terms of volume and value of transactions. The abundance of platform field-based positions provides a unique opportunity for women to integrate into more formalised labour, expand their earning potential, and pursue a career that works with their household responsibilities and personal aspirations.Of note is that capacity building is key to supporting women who earn an income on the platform. Tailored support could include:
    i) Providing digital literacy training,
    ii) Training on how to use the platform,
    iii) Value-added financial services (e.g., credit, insurance, or savings products),
    iv) Providing assets necessary for livelihoods earned on the platform (e.g., smartphones,
    v) Access to support networks within the platform ecosystem

Supporting refugees to find freedom by expanding access to finance

Supporting refugees to find freedom by expanding access to finance

By FSD Africa and FSD Uganda teams

“Independence”, “having the power or right”, and “liberty”, are some of the phrases that describe freedom. This year’s World Refugee Day theme is ‘finding freedom’ and access to financial services is a key component to achieving that once refugees resettle so that they become self-reliant and economically independent.

Though important, little has been known about the financial strategies employed by refugees over time to build their livelihoods and manage their finances.

To learn more, the Financial Sector Deepening (FSD) Uganda and FSD Africa commissioned the Financial Inclusion for Refugees (FI4R) project. The project aimed at deepening and broadening access to and usage of formal financial services among refugee and host communities in Uganda, with a focus on the West Nile and South-West regions. The project also had a learning and research component to assess refugees’ incomes and expenses to inform the development of financial products and services offered to them in Uganda.

Consequently, the project supported three financial institutions; Rural Finance Initiative (RUFI), VisionFund Uganda, and Equity Bank Uganda Limited to rectify this grim situation by enabling them to offer a variety of savings and credit products as well as financial literacy programmes to refugee groups in the target areas.

Florence is one of many refugees who benefited from the Financial Inclusion for Refugees project by getting a RUFI loan through her savings group. The single mother of two who lives in the Palorinya refugee settlement in Moyo district arrived in the settlement five years ago from South Sudan. She is a tailor belonging to three saving groups where she saves Ushs 4,000 (1.04USD) and Ushs 20,000 (5.2USD) weekly in each group.

She used the loan as capital for her business and continued to save money together with her group so that she can later purchase stock.

Over a period of 12 months, Florence has increased her contributions to the savings group as she has realised saving diligently is essential to growing her business.

Through its implementation, the project addressed some of the key barriers to increasing access to financial services for refugees including, low-risk appetite among the financial service providers highlighted by the limited appreciation of refugees as a potential market and underdeveloped ecosystems where there is high reliance on saving groups and limited adoption of formal financial services.

In addition to evaluating the impact of financial services on refugee livelihoods in Uganda, the learning and research component also provided insights for financial institutions on how to improve access to financial services in the refugee settlements.

The project endline study reports that Ushs 7.6 bn was disbursed in loans by the three financial institutions to savings groups. Additionally, over Ushs 12 bn was deposited in savings accounts with three financial institutions.

Florence’s experience and the endline report numbers demonstrate that refugees are a viable market segment. For that to be fully exploited, respondents’ reasons for hesitation to use formal financial services must be tackled.

Interested commercial banks and micro-financial institutions should therefore improve access by deploying more agents in the different villages of the settlement. This is in place of having a few agents in the major trading centers which are far away from the settlements.

Additionally, information regarding details of products and services offered including interest rates, fees, and prerequisites should be availed and simplified even when services are offered digitally.

Further, the high transactional costs of using mobile money should be revised as these were sighted as a reason for limited or avoidance of usage.

When these adjustments are made, financial service providers will register transactions worth more than the recorded Ushs 7.6 bn and Ushs 12 bn in loans and deposits/savings respectively in the two years of the Financial Inclusion for Refugees project’s implementation. This will make financial inclusion for refugees and host communities a win-win for financial service providers whose decisions are profit based as well as the target market segment.


Women and Girls’ Access to Education and Health Services, and finance in Uganda

Women and Girls’ Access to Education and Health Services, and finance in Uganda

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    In line with Financial Sector Deepening’s 2.0 strategy, FSD Uganda aims to move beyond a predominant focus on financial inclusion to also impact the real economy.

    The objective of this assignment was to develop a more comprehensive understanding of the health and education markets and identify opportunities to improve access and outcomes for women and girls through financial sector intervention. This report therefore:

    • Assesses women and girls’ access to and use of health and education services with financial services as a key enabler in meeting those needs.
    • Provides recommendations to FSDU on how they might intervene to improve outcomes for women and girls. This will include recommendations about possible intervention options as well as potential partners.

    MSE Recovery Fund at One Report

    MSE Recovery Fund at One Report

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      The Micro and Small Enterprises (MSE) Recovery Fund was launched on February 24, 2022. The fund aims to facilitate access to finance directly to 50,000 MSEs (at least 40% women and 30% youth). This is with an objective to shorten the recovery trajectory of youth and women-owned and operated businesses from the COVID-19 pandemic effects, by providing their businesses with much-needed capital injections. In turn, this is expected to jumpstart the economic livelihoods of entrepreneurs to secure and create job opportunities for young women and men in Uganda.

      Six microfinance institutions and SACCOs (Tier III and Tier IV financial institutions) have received funds to on-lend to small and medium enterprises recovering from the effects of the Covid-19 pandemic.
      These are; Pride Microfinance Limited, FINCA Uganda, Lyamujungu Cooperative Financial Services, Mushanga SACCO Limited, Hofokam Limited, and UGAFODE Microfinance Limited, operating across the country.
      Jointly, the institutions have on-lent UGX 13.42bn to 10,832 MSEs at an average interest rate of 16.0%. So far, the funds have been disbursed to 40% of youth and 55% of women. The average ticket size borrowed is UGX 950,000.


      Narrowing the gender gap in digital agricultural platforms

      Narrowing the gender gap in digital agricultural platforms

      Women are highly engaged in agriculture and rural economies, as labourers, consumers, and producers, both for markets and their households. According to the Consultative Group to Assist the Poor (CGAP), an estimated 79% of economically active women in developing countries report agriculture as their primary activity. However, there are gaps in women’s productivity due to: a lack of land ownership, lower access to quality inputs, credit, and training, less access to paid and unpaid family labour, smaller land sizes for cultivation, and restrictive norms e.g., focusing women on low-value crops. In many value chains, women provide most of the labour, but payment for outputs goes directly to men. This discourages women from supporting productivity growth and limits their economic potential.

      Digital agricultural platforms can boost farmer productivity but also risk entrenching gender inequalities if not gender intentional. Research shows that only 25% of Sub-Saharan Africa digital agricultural platform users are women and are not served sufficiently. To focus the FSD Uganda-supported digital platform partners on being gender-intentional in their business models, FSD Uganda held a “Gender in Agricultural Platforms” co-creation workshop with Emata Uganda Ltd, Ensibuuko Tech Ltd and Quest Digital Finance Ltd.

      Gender co-creation activity

      The engagement raised awareness of the gender issues in agricultural value chains. It also allowed each of the partners to reflect on how these issues manifest in the customer journey starting from acquisition, credit scoring/financing, impact, retention, and advocacy.

      The key takeaway from the gender co-creation workshop was a curated list of best practices that these platforms can adopt to create shared value for the platforms and the women that engage with them. For gender intentionally, the partners were tasked to prioritise the best practices for adoption, indicating how to implement them and the relevant support that may be required. This is an activity all stakeholders in the digital agricultural platforms space can partake in to bridge the gender gap in the platforms.

      A word from the participants

      This is what participants had to say about how gender gaps in digital agricultural platforms can be reduced.

      “One-way platforms can be more intentional about reaching women is through the financing mechanisms like the payment mechanism for the sale of agricultural products – these could use different acquisition strategies to reach female farmers including focusing on female-focused value chains. We can also consider women-based agent network models and others that might be more effective at impacting women not just reaching many women,” Julie Zollman, FSD Network Gender Collaborative Programme.

      “We need to focus on business activities that women are actively involved in for better inclusion such as catering services, poultry and identify how we can help them diversify on digital platforms. We can also skill them up to make their businesses profitable,” Winnie Namubiru, Quest Digital Finance Ltd.

      “Gender is a very important aspect of our business because it promotes specificity right from the organisation level through how we offer services. It is important to us given that our clientele are rural poor in saving groups with 80% of members being female. So, my key takeaway is to identify gender gaps in the value chains and be able to offer appropriate value chain financing products that will most influence specificity from all angles,” Roger Nyakahuma, Ensibuuko Tech Ltd

      “We want dairy farmers to dream big and we cannot achieve this dream without involving both females and males. This is key for maximum impact on the farmers’ lives. Going forward, we need to combine both tech-based solutions with on-ground field support to enable us to bridge the gender gap and encourage more women to understand how to use financial services and embrace technology,” Lillian Nassanga, Emata Uganda


      Bridging the gap between youth and access to financial services

      Bridging the gap between youth and access to financial services

      Social norms, product suitability and lack of collateral are some of the hindrances to inclusive finance for women and youth cited by the Mastercard Foundation partners under the Young Africa Works Program in Uganda.

      This was discussed during the launch of the Young Africa Works community of practice on inclusive finance in January 2023. Inclusive finance means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit, and insurance – delivered in a responsible and sustainable way.

      The community of practice on inclusive finance will provide a platform to convene and share ideas, resources, and lessons on a wide range of topics related to financial inclusion. It is one of many collaborative and intentional approaches of the Mastercard Foundation Young Africa Works program to ensure more impactful delivery and achievement of benefits for young people.

      “The ultimate intention of the community of practice on inclusive finance is to deepen understanding of the various aspects of inclusive finance and drive a more collaborative and intentional approach to program implementation,” said Arnold Byarugaba the Foundation’s MSME Finance Lead during the launch.

      Composed of all partners under the Young Africa Works program in Uganda, the community of practice on inclusive finance will review ongoing challenges, gains, and opportunities affecting financial inclusion within the Young Africa Works interventions in Uganda and pivot accordingly to achieve greater impact.

      During the first gathering, partners learnt from each other what others are doing to sustainably enable young people in work. Group discussions brought to light the financial inclusion gaps for each partner as well as recommendations on how these can be filled or addressed for that matter.

      Even though the community of practice on inclusive finance membership is primarily for Young Africa Works partners, bridging the gap between youth and access to financial services isn’t exclusive to the partners. Establishment of the community is evidence that all stakeholders seeking to impact youth need to reflect on their financial inclusion gaps, come up with solutions on how they can be bridged and implement them.

      A steering committee was set up and is responsible for both governance and technical aspects of running the community of practice on inclusive finance, including tasks such as setting or reviewing the community’s objectives. Going forward, meetings will be held on a quarterly basis tackling different themes that are relevant to the impactful implementation and deepening access to finance amongst women, youth and refugees under the Young Africa Works Programs funded by the Mastercard Foundation.

      Since its launch, one quarterly meeting has been held in March 2023. The theme of the meeting revolved around ‘unlocking access to finance partnerships for program participants’.  A key highlight from the meeting is acknowledgement that traditional financial institutions are not sufficient to meet the needs of startup enterprises yet majority of these make up the Young Africa Works target group. Partners agreed to intentionally craft solutions on how to meet the finance and growth needs of businesses at ideation and start up stage.

      About the Young Africa Works Program

      The Young Africa Works Program works closely with key stakeholders to enable young women and men, including refugees, internally displaced youth, and those living with disabilities, to acquire the skills needed to find employment or create work opportunities. Financial sector Deepening Uganda is leading the partnership on financial inclusion.


      Rapid Gender Assessment of the Horticulture and Dairy Value Chains in Uganda

      Rapid Gender Assessment of the Horticulture and Dairy Value Chains in Uganda

        Download Case Study

        A rapid assessment to obtain insight into women’s economic opportunities within the dairy and horticulture value chains was commissioned by the FSD Network Collaborative Gender Programme to support FSD Uganda.

        This report presents insightful findings from the literature reviewed and a field study conducted in selected districts across the tomato and dairy value chains in Uganda. The report provides an overview of the transformative potential on rural women’s livelihoods per value chain, and further explores interventions supporting women to achieve greater resilience, increase their income and exercise greater decision-making.

        The findings of this report will aid development of interventions in line with FSD Uganda’s mandate, under which it works with both public and private sector players, to develop sustainable improvements in the livelihoods of low- income individuals (particularly women) through reduced vulnerability to shocks, increased incomes, and employment creation.


        FSD Uganda pilots platform economy masterclass

        FSD Uganda pilots platform economy masterclass

        Simply put, the platform economy is economic and social activity facilitated by platforms. A platform business is a multi-sided model focused on creating value by facilitating interactions between two or more interdependent groups usually, consumers and producers. The common forms of interactions between the groups include selling, buying, and sharing of goods and services. Common examples of platforms include Facebook, Amazon, Airbnb, SafeBoda and Uber.

        In early March 2023, FSD Uganda run the first platform economy masterclass. Attended by the first cohort, the recently developed curriculum was piloted during the five-day class.

        The inaugural masterclass was attended by 24 participants in the platform economy drawn from ecosystem enablers such as, AgriTechs, HealthTech, Fintechs, and others.

        The masterclass seeks to support technology platform entrepreneurs to enhance their business models, diversify their income streams, and revamp their value propositions. Additionally, it seeks to see the businesses expand their customer base and collaborate or partner with other ecosystem players (both locally and globally) and deepen financial inclusion, thus improving the ecosystem they serve.

        More cohorts of the platform economy masterclass will be conducted to obtain industry and participant feedback to enable the refinement of the curriculum.

        Ultimately, FSD Uganda intends to enable the ecosystem to run the masterclass as a regular program for capacity building of platform economy participants and ecosystem enablers. The target participants include fintechs, agritechs, MSMEs, financial services providers, consumers, development partners, etc. This is expected to spur the growth of Uganda’s nascent platform economy.

        This is what some of the participants from the first cohort say about the masterclass.

        “During the class, we got insights into case studies which showed us what has worked before in other countries. For us in the agriculture industry, we have learnt about how the likes of Twiga Foods in Kenya are operating and that provided valuable information on how to scale” says, Annet Nanyanzi, Co-founder, Green Shares Limited.

        “I have understood better what digital and platform economy is and how to make money in the different business models as well as the risks involved. The case studies were very helpful in aiding my understanding. The most important thing is how we are going to apply what we learnt to help us scale faster – we know that we must move away from just providing the products to facilitating the transaction on the platform so that we reach more users within a short time,” Zilla Arach Mary, Chief Products, and Innovation Officer, EzyAgric said.

        “The masterclass provided useful tips and insights and different business models that we can apply to grow our customer base. The different case studies for example the talk by SafeBoda enlightened us on how best we can improve our services, our infrastructure, and reduce costs. Because of the class, we will be able to redefine our products and provide better service to our customers,” says Michael Francis Kalyango, the Chief Technical Officer at Quest Digital Finance.


        Embracing digitalisation in agriculture for inclusive growth

        Embracing digitalisation in agriculture for inclusive growth

        By Geoffrey Okidi

        The COVID-19 pandemic was a wake-up call for businesses across various sectors to develop plans to ensure business continuity amidst disruptions of that magnitude. Most of these plans include embracing digitalisation.

        For economies such as Uganda’s which are heavily dependent on agriculture, Digitalisation in agriculture can be a sector game changer. Digitalisation for agriculture is the use of digital technologies, innovations, and data to transform business models and practices across the agricultural value chain. This in turn helps address bottlenecks in productivity, postharvest handling, market access, finance, and supply chain management. This aims to achieve greater income for smallholder farmers, improve food and nutrition security, build climate resilience, and expand the inclusion of youth and women.

        Financial Sector Deepening Uganda’s 2020 study on the impact of COVID-19 on agricultural finance in Uganda in September 2020 affirms the importance of digitalisation. The study points out that the lack of digitisation along the agricultural value chain exacerbated firm-level economic effects indirectly caused by COVID-19 measures. The study points out opportunities for digitisation that could have saved the day and fostered greater resilience to the impact of the COVID-19 lockdown measures. The study notes that there was a sudden growth in e-commerce (for example, door-to-door delivery) by 100 to 300 percent in some cases, albeit off a very low baseline, showing underlying demand for digitisation.

        According to McKinsey Global Institute’s 2016 study titled Digital Finance for All: Powering Inclusive Growth in Emerging Economies, digital technologies cut the cost of providing financial services by 80 to 90 percent.

        Findings of a similar study conducted by aBi Finance on the performance of SACCOs during COVID-19 lockdown are consistent with the McKinsey Global Institute Study. The aBi Finance study found that during the COVID-19 lockdown, fully digitalised SACCOs performed much better in terms of loan portfolio quality and savings mobilisation than their non-digitalised counterparts.

        Uganda and other East African countries have some of the most conducive conditions for increasing uptake of digital finance technologies in the agricultural sector (about 56 percent of adults are already using mobile money – FSD 2018). However, agricultural payments in Uganda remain predominantly cash-based and many people remain unbanked (Better Than Cash Alliance, 2017).

        To reap from the potential benefits of digitisation of the agricultural value chain, there is need to address the key challenges hindering it. According to the UN Capital Development Fund, the key challenges to digitalisation in Uganda are:

            • Low education levels, fluctuating incomes, price sensitivity/preference to pay with cash amongst many consumers
            • Formal financial exclusion and limited usage of available financial services
            • Limited infrastructure for digitalisation, for example, poor mobile network, high costs of mobile network expansion and maintenance
            • Gaps in the policy and regulatory environment, for example, SIM registration requirements were thought to limit smallholders’ access to mobile phones
            • Many agribusinesses do not have the internal systems in place to take advantage of digitalisation
            • Challenges in managing a national level digitalisation programme given diversity of languages across Uganda

        To accelerate transformation in the agriculture sector, hindrances to the adoption of digitalisation must be addressed. According to The Digitalisation of African Agriculture Report 2019, Digitalisation for Agriculture solutions are categorised into five primary use cases: (i) advisory and information services; (ii) market linkages; (iii) supply chain management; (iv) financial access and (v) macro-agricultural intelligence. The report highlights the recommendations below to stakeholders to address the challenges in digitalisation.

        Recommendations to address the challenges to digitalisation
        To improve use, drive greater inclusivity, impact and reap the benefits of digitalisation of agriculture, priority should be placed on the following:

            • Development of human capital at every level of the digitalisation for agriculture ecosystem, including increasing awareness of digitalisation for agriculture, improving digital literacy and, greater digital skill building among actors across the agricultural value chain
            • Driving greater business model sustainability by, for instance, improving value for farmers, identifying, and promoting successful business models and mobilising funding to support a more diverse set of companies
            • Creating greater impact by making digitalisation for agriculture solutions more inclusive of women and other marginalised groups, as well as smallholders in geographies with relatively less digitalisation for agriculture investment
            • Investment in the missing middleware infrastructure. Successful digitalisation for agriculture solutions require access to a wide range of data (from remote sensing data to farmer-specific data) to deliver high-quality services to farmers
            • Investment in good data stewardship and designing for the risks and limitations of digital systems
            • Investment in the digitalisation for agriculture knowledge agenda
            • Creating an alliance of key digitalisation for agriculture stakeholders to promote greater investment, knowledge sharing and partnership building

        Supporting development of the National Fourth Industrial Revolution Strategy

        Supporting development of the National Fourth Industrial Revolution Strategy

        Technology has completely revolutionised the way we do business; it is growing in various industries and will change all aspects of life. That is why the Third National Development Plan (NDP III) Digital Transformation Programme goal for Uganda is to increase ICT penetration and use of ICT services for social and economic development. One of the key focus areas for the government is to support the development and uptake of emerging technologies such as Fourth Industrial Revolution technologies, writes Judith Nabakooba, former Ministry of Information Technology and National Guidance (MICT-NG). To implement this, it was deemed important to develop the National Fourth Industrial Revolution (4IR) Strategy.

        Digital technologies, if harnessed, can support the country attain its social and economic goals including financial inclusion. For the financial sector, the value of 4IR solutions resides in the development of use cases that can reduce the cost of serving existing consumers as well as acquiring new ones, making new business models possible for previously unreachable demographics. Several financial service providers have adopted these technologies to minimise inefficiencies in their businesses, manage customer and business risk, and create more seamless experiences for their customers.

        The Financial Sector Deepening (FSD) Uganda, under its work on developing an inclusive financial system (infrastructure and environment) to support the digital economy, joined the Expert National Task Force on the Fourth Industrial Revolution to support development of the strategy.

        To kick start the process, an in-depth foundational assessment of Uganda’s 4IR opportunities and readiness was conducted to identify the areas that must be further developed to achieve these objectives. The approaches taken by peer countries in formulating national fourth industrial revolution technology strategies were also considered. A comprehensive process of local stakeholder consultation to reflect the country’s developmental objectives was conducted and their input was included.

        The findings from the assessment later informed the strategy which identifies opportunities in the Ugandan economy where 4IR applications would have the most significant positive impact and critical enablers required for execution. The strategy also specifies mechanisms to ensure the interventions are implemented effectively and efficiently. The identified opportunities are:

          • Unlocking productivity in agriculture by enhancing small-holder productivity from pre- to post-harvest to increase outputs to the value of 2% of GDP each year.
          • Transforming human capital development by broadening access to cost-effective, high-quality education and healthcare to improve school survival rates by 50% and increase average life expectancy by an additional two years.
          • Overcoming the economic opportunity shortfall by enhancing supply chains and access to digitally traded services to create 300,000 new earning opportunities.
          • Supporting urbanisation and governance by managing rising pressures on urban settlements by supporting the extension and delivery of critical urban services.
          • Tripling the uptake of e-government services and halving the current number of manual government processes.

        These four critical areas of opportunity cover a variety of sectors and processes that will be critical to Uganda’s ability to navigate powerful forces of change. These forces include climate change, rapid urbanisation, the youth wave, and the global dispersion of production. Building and scaling the opportunities across these zones will be instrumental in Uganda’s ability to realise structural transformation, harness the demographic transition, and mitigate emerging risks facing the global economy.

        Overall, the strategy’s vision is to create a continental 4IR hub that enables a smart and connected Ugandan society. Its mission is to transform and accelerate Uganda’s development into a creative, innovative, productive, and competitive society using 4IR technologies by 2040.

        Executing the opportunities presented in the strategy requires 4IR connectivity, regulatory agility, upskilled population, eGovernment and cyber security, resource mobilisation and investment promotion. To harness the prospects the 4IR offers, coordinated effort between the government, private sector and civil society is key.

        The strategy is now finalised and on December 8, 2022, FSD Uganda joined the Ministry of Information Technology and National Guidance to handover the National Strategy on 4IR to the Prime Minister.

        The strategy awaits approval from cabinet, although implementation of key recommendations, like the development of the National Artificial Intelligence Ethical Framework, is already underway. Furthermore, the Government and other stakeholders are making use of the opportunities presented by the strategy to roll out innovative products and services that help them meet their goals.


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