PostBank Uganda has taken a significant step towards enhancing financial inclusion for highland farmers through a groundbreaking partnership with the International Fertilizer Development Centre (IFDC).
This collaboration, part of the BRIGHT (Building Resilience and Inclusive Growth of Highland Farming Systems for Rural Transformation) project, aims to improve access to financial services via Village Saving and Loan Associations (VSLAs).
The BRIGHT project’s baseline survey highlights critical barriers to financial inclusion in regions like Rwenzori, Kigezi, and Elgon. Farmers face exorbitant interest rates ranging from 22% to 120% per annum, making financial services prohibitively expensive.
Additional challenges include limited awareness of available financial products, the absence of physical banking branches, and stringent collateral requirements that disproportionately affect women and youth.
Brenda Mpoora, Head of Fintech Business at PostBank Uganda, emphasized the bank’s commitment to fostering prosperity among Ugandans.
“Through Wendi mobile wallet solution, we are glad to continue the journey of empowering users and groups, particularly those with limited access to traditional financial services,” she stated. The Wendi mobile wallet allows users to secure their savings while earning a 10% interest per annum on daily savings.
The partnership is not just about providing access; it also focuses on equipping farmers with essential financial literacy skills. Mpoora noted that this initiative will help farmers understand how to access various financial services conveniently.
“This partnership is a great opportunity for our farmers to be equipped with financial literacy so that they know how they can access financial services conveniently,” she added.
Roger Gilbert Nyakahuma, Financial Inclusion Manager for the IFDC BRIGHT project, acknowledged PostBank’s role in bridging the financial inclusion gap. He described the Wendi mobile wallet as a “game changer” for areas lacking physical banking facilities.
“The objective of this partnership is therefore to facilitate the linkage of BRIGHT project VSLAs to the Wendi mobile wallet solution,” Nyakahuma explained.
The BRIGHT project aims to reach 40,000 farmers through its initiatives across 1,300 VSLAs in the Elgon, Rwenzori, and Kigezi regions. Each VSLA consists of about 20-25 members, indicating a substantial potential impact on local farming communities.
Agriculture remains a cornerstone of Uganda’s economy, employing about 70% of the working population and accounting for 26.42% of the country’s exports. The National Development Plan III identifies agriculture as a key growth opportunity with significant potential for job creation and economic development.
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