Village Enterprise is making significant strides in the fight against poverty in Africa, leveraging the power of financial technology (FinTech) to empower communities. As part of the #40Days40FinTechs Initiative, Village Enterprise recently showcased its innovative approach on Day 20, highlighting its commitment to poverty eradication across the continent.
In Uganda, a staggering 30 percent of the population was living below the poverty line in 2019/20, a slight decrease from 31 percent in 2012/13. This persistent challenge underscores the urgent need for effective interventions. Organizations like Village Enterprise are stepping up to the plate, implementing programs designed to uplift individuals and communities from extreme poverty.
Founded in 1987, Village Enterprise operates in Uganda, Kenya, Rwanda, and Ethiopia, focusing on ending extreme poverty through sustainable business practices. The organization employs the Poverty Graduation Model, which emphasizes business skills training, mentorship, and cash grants for aspiring entrepreneurs.
Mercy Angela Nantongo, the Digital Product Manager at Village Enterprise, elaborates on the model: “In this model, we do business skills training with individuals we have identified are living below the poverty line. We mentor them and also give them cash grants to start their businesses.”
This approach is not just about providing funds; it’s about fostering a community spirit. Grants are given to groups of three, encouraging collaboration and shared responsibility.
Nantongo explains the rigorous selection process: “To qualify for this program, we go to the field and do surveys to confirm whether someone is living through the poverty lines. After this identification, we do the trainings and mentorships, and those that complete these trainings then qualify for the grants.”
Recognizing the potential of technology, Village Enterprise is integrating FinTech into its operations. This digital transformation is designed to enhance record-keeping and financial management for beneficiaries.
Nantongo notes: “We have introduced a digital solution that enables our groups to do record keeping and save their money digitally. This solution enables them to do their meetings, record their money digitally, and also keep track of their goals.”
Moreover, the organization is exploring innovative methods for distributing cash grants via mobile money. Given that the grants are intended for groups of three, ensuring equitable access and usage is crucial.
Nantongo emphasizes the ongoing efforts to refine this process: “We are looking at better ways of ensuring that when this money is sent, all the three beneficiaries rightly use it for the intended purpose without misuse from a single individual.”
Related: ETG Inputs is making Agriculture more predictable and profitable
