Ugafode Uganda has received a $1m (Shs2.5bn) grant from the United Nations Capital development Fund (UNCDF) to develop and run a product to mobilise savings from groups and associations.
Ugafode Executive Director Wilson Twamuhabwa told reporters last week at their head offices the money would be used for market research and product-development. The microfinance has developed a group savings account, dubbed GroupSave Account, which targets associations, clubs, Saccos, among others.
“We will engage in financial literacy for our customers, and give them our lawyers to help them,” Twamuhabwa said.
“Savings groups are a powerful, efficient, and accessible way for people to save together.”
Twamuhabwa said groups would be able to access affordable credit with the group acting as collateral.
Source : The Observer