Global Whole Being Fund Report

The Community Finance Project, launched under the Global Whole Being Fund (GWBF) in partnership with COHERE, started in February 2024 with the goal of empowering women and youth (aged 16-35) from refugee and host communities in the Buguta, Base Camp, and Kaihora zones. The project focused on empowering five Village Savings and Loan Associations (VSLAs) to provide low-interest loans, raise awareness of safe saving methods, and support income-generating activities to foster long-term financial resilience. The initiative aimed to directly impact 150 participants and indirectly benefit 45% of the community in Rwamwanja through mobilization and sensitization efforts. Key activities included providing financial literacy training, facilitating access to loans at a 5% interest rate, and integrating mobile money services to make financial transactions more accessible. The project also aimed to alleviate poverty, enhance financial inclusion, and empower women and youth within the community.

The Community Finance Project has made significant progress in 2024, reaching important milestones in empowering women and youth. Five VSLAs were formed, with a total of 150 members, and received 6.5 million Ugandan shillings to facilitate low-interest loans at a 5% monthly rate. These loans enabled members to support their businesses and income-generating activities. The project also provided critical financial literacy and VSLA methodology training to all members, equipping them with VSLA kits and skills to manage savings, loans, and minimize financial risks. Mobile money services from MTN and Airtel were successfully integrated, reducing the need for travel and improving financial accessibility, with positive community feedback. Additionally, five community mobilization sessions were held to raise awareness of the project and its benefits. Although the agent account with Equity Bank is still pending, the project has laid a strong foundation for expanding financial services to the community, with promising prospects for further growth.

Several lessons were learned and best practices identified throughout the Community Finance Project. A key lesson was the importance of early engagement with stakeholders, particularly service providers like mobile money services (MTN and Airtel) and financial institutions like Equity Bank. Delays in approvals from these partners resulted in a delay in the project timeline and financial operations. This experience emphasized the need to establish relationships and initiate discussions with all partners well in advance, ensuring smoother operations and more efficient project delivery.

A best practice that emerged was the flexibility shown in managing unexpected challenges. Due to the delay in the approval process for the POS machine, the funds originally designated for this purchase (1.5 million Ugandan shillings) were wisely redirected toward the VSLA loan pool, allowing the community to continue benefiting from financial support.

Additionally, the project's success in community mobilization and engagement stands out as a best practice. The integration of mobile money services was especially well-received, reducing transaction costs and improving accessibility. Providing financial literacy training was another crucial aspect that empowered members to manage their resources effectively. These practices have proven to be essential in ensuring the long-term sustainability of the project and its positive impact on the community’s financial resilience.