Microfinance

   CSRL in partnership with VEDCO implements a small microcredit program supporting farmers in the Sustainable Rural Livelihoods program in Kamuli district. Eligible farmers are those who achieved household food security and are looking expand to agricultural trade.

  Using a progressive loan model that requires savings and group support, the microfinance program has helped farmers engage in farming as a business. As of 2012, the CSRL/VEDCO Microfinance program has disbursed more than 90,000,000 UGX (~$40,000) to farmer groups and enterprising farmers.  Participating farmers have provided many testimonials on how the microfinance program has improved their livelihoods.  They are now in a position to access loans to expand their farm enterprises, which has enabled them to pay their childrens’ school fees, meet their household expenses, and even accumulate assets they can sell in times of need.

The proram has started supporting farmers in larger groups to invest in bulking of agricultural produce for resale at a higher price. The Kamu Kamu association in Butansi which has 20 members, for instance, recently acquired a loan for 2.5 million UGX to buy soybean and other produce from local farmers who produce only on a small scale and cannot negotiate better prices.


Betty Mirembe stands next to her new piggery
built with funds from a microfinance loan from CSRL


Mirembe Betty’s story
Betty’s piggery started with two pigs, which she received from the CSRL program along with training in animal production and health.  She has since increased her drift of pigs to 11 animals, not counting those she sold to meet her household living expenses.

To date, Betty has borrowed from the microfinance program two times. The first loan was for UGX 200,000 (~$100).  She invested this money to expand the structure of her piggery unit.  Once she paid back this loan, she was eligible for a second load for UGX 400,000 (~$200). This time she invested part of the money to increase the number of pigs in her expanding piggery enterprise.  And she used the rest of the loan (~$35) to establish an acre of sweet potatoes in her crop garden.  So far, Betty has realized income of about UGX 100,000 (~$50) from the sale of the sweet potato harvest, and she continues to harvest and sell the potatoes a little at a time.  She also has been selling enough weanlings and finishing stock from the piggery enterprise to pay for her child’s tuition at Makerere University in addition to covering household expenses.  She plans to take a third microfinance loan, which she will invest in a further expansion of her piggery -- the main source of stable income for her family.  

As of 2012, the CSRL/VEDCO Microfinance program has disbursed more than 90,000,000 UGX (~$40,000) to farmer groups and enterprising farmers.  Participating farmers have provided many testimonials on how the microfinance program has improved their livelihoods.  They are now in a position to access loans to expand their farm enterprises, which has enabled them to pay their childrens’ school fees, meet their household expenses, and even accumulate assets they can sell in times of need.


CSRL microfinance has helped Mohamed Mpaabe to:
  • Start a thriving banana enterprise.
  • Transform his tanuru (like a pile of bricks) into a liveable home.
  • Pay off his debts and pay for his children's schooling.
  • Train and encourage other farmers to do the same.








Find out more about Mohamed Mpaabe.