We are currently running a microcredit fund based at the Rushaga Community Development Center and three other local villages. Borrowing money in Uganda is very expensive and many in the community do not have access to bank accounts. These are some of the numerous factors that decrease the chances of development and entrepreneurship.
The interest rates are too high for start ups to cover their debt, and therefore people work their entire life to pay them off, or don’t consider to take a loan. With our funds, people could borrow money collectively at a 1.5% rate, much lower as the banks 2,9%. We have to make this interest to cover our expenses. Another important thing with this loan is that they are collectively responsible for their debt and have to discuss more openly about their finances. Every week they will attend to a meeting, saving money and cash crops in order to maintain a stable payment. We train the women in lending money and how the system works. With this little knowledge and local support, we hope to encourage more people to start up a small sustainable business.