Interest-Free Microloans For Rural Entrepreneurs in Uganda
- Raised
- $0
- Goal
- $5,100
Summary
In partnership with Bridging Gaps- https://www.bridging-gaps.org/, we are raising funds for a self-sustaining micro finance initiative issuing collateral-free, interest-free loans, for as little as $70, to disadvantaged communities in rural Uganda to assist them in starting businesses, building assets and gaining business skills for income as a long-term and permanent drive to improve household living conditions and financial independence.
Challenge
41% of the population in Uganda lives in poverty, and nearly half of the country’s population is under the age of 15, making it one of the youngest populations globally. Uganda also hosts Africa’s largest refugee population, with more than one million refugees seeking asylum. These pressures have strained local communities, many of which struggle to meet basic needs.
In addition, the National Labour Force Survey (2021) showed that 87% of the population in Uganda lacked bank accounts meaning; more than half of the population can’t have access to bank loans, let alone be in position to pay the high interest rates change by finance institutions. Considering that the majority of the country’s population live in rural areas, they are isolated and cut off mainstream finance and economic contributions of Uganda and therefore, kept in a cycle of poverty with no skills and access to resources to engage in income generating activities for better living conditions.
Solution
Partnering with Bridging Gaps and adopting the Social Entrepreneurship and Pay-It-Forward Model, the project will form grassroots communities into groups, provide entrepreneurship training and provide individual members with microloans for business with continued mentorship to ensure success.
Providing the entrepreneurs with continued capacity building in financial literacy, business identification and management/ mentorship, the interest-free microloans will ensure effective management and financial discipline and increased access to capital that will provide groups with local funds, support economic activities and projects, reduce debt burden- because of no interest charges.
Focusing on repayment of the principal amount reduces financial stress, improves financial stability and builds a stable financial foundation at grassroots level, reaching some of the highly marginalized or underserved communities. This will also promote financial inclusion and gender equality, increased economic activity, stimulating local economic growth and development and ensuring reduced poverty by supporting small-scale entrepreneurs.
The Goal of the Project is to raise 5100:
Provide access to interest-free microloans for 10 rural poor individuals and families
Support income-generating activities and small-scale entrepreneurship
Enhance financial literacy and management skills
Foster community development and social cohesion
Target Beneficiaries:
Rural poor individuals and families
Refugee communities
Small-scale farmers and artisans
Women and youth entrepreneurs
How You Can Help
Every donation and support brings us closer to the goal of supporting rural poor and refugee Entrepreneurs in Uganda. You can choose your level of impact:
- Train and Mentor 10 Entrepreneurs: $100
- Provide an Entrepreneur with a Business Loan $500
- Become a Fundraiser and rally your network to support the cause
Thank you for your generosity! Every contribution makes a meaningful difference in the lives of rural poor communities and refugees and their families.