Microfinance

Challenge

Whether they are refugees forced to leave their lives abruptly behind or locals trying to rebuild their lives after two decades of civil war, most women in our programs are starting over with no money at all. With no banks where they live and little access to capital, they rely on informal community networks for their finance needs, often via a joint revolving fund that allows them to save money as part of a group and borrow from the communal pot. However, the amounts involved are typically too small to be truly impactful, keeping women in a cycle of poverty.

Solution

AWR helps women to:

Learn basic business skills

Access microfinance capital

Save money to reinvest in business

Through long-term mentorship, we provide women with the basic record-keeping and business skills training they need to become financially literate and secure. We also provide grants to local women’s savings collectives that allow them to scale up their revolving funds. This extra capital allows women to invest in better regenerative practices on their existing farmland, increasing crop yields, and also start entirely new business initiatives. The additional income generated enables women to pay school fees, invest in livestock, build savings, and support other small businesses, growing the local economy.

Program Model

AWR’s Microfinance program is based on a proven community-level approach known as the Village Savings and Loan methodology. Self-managed groups of 15 to 30 people meet once a week to deposit their savings, take out loans, learn new skills, and support each other. Savings are kept in a communal safe equipped with three locks whose keys are held by three different women, and its location is kept secret to reduce theft. AWR community mobilizers provide each group with technical support and mentoring over a three-year period. For groups that have demonstrated an ability to sustain savings, AWR provides a $250 USD grant, increasing the amount available for members to borrow. Instead of being constrained by loans of just a few dollars, women are able to access $20-75 USD at once – much more substantial sums which increases the amount of business they can conduct, boosting profits. These loans are then returned with interest at a rate decided upon collectively.

Financial Training

Community mobilizers meet regularly with savings groups to teach critical record-keeping, accounting and business skills.

Business Mentorship

Community mobilizers keep in regular touch with savings group members over the course of multiple years to help facilitate and scale up entrepreneurship.

Seed Grants

AWR provides $250 grants to boost revolving funds, which are parceled out to group members via small loans repaid with interest.

Impact

12
Community mobilizers employed
$3.2M
Saved by AWR collectives over the last five years
241%
Average increase in individual savings over three microfinance cycles
51%
Average more in savings for women in AWR programs
86%
Participants still showing positive savings rates in 2021, despite the impact of the COVID pandemic
87%
Participants who have acquired assets or started a new type of business since working with AWR

Stories of Impact

Consi, 27, mother of four
“Being in the African Women Rising group has brought a lot of change for me. When we got help from AWR, I was able to take out a loan and start my business. I grow onions and sell them at the market. It’s a good business – people always want my onions. When you have a business and regular income it’s easier to save money. I bought two oxen and a goat with my first savings. I used to have a little over an acre; now I have five. It becomes so much easier with oxen. When you open a field by hand it takes three weeks. With oxen it takes no more than three days. I plan to open another three acres when the rain starts. I use the practices we have learnt in the Field Crop program. We never have a shortage of food these days. That makes me so happy. It’s good to know there is enough food. At the end of this year when we get our savings back, I’m planning on buying a cow for milking.”
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African Women Rising serves as a catalyst for thousands of women and girls in Northern Uganda, giving them the support they need to live their lives with dignity.
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