Lalam Jackline was struggling to support her family. Among many other factors, lack of transportation was one of the biggest barriers to making a living. She needed a reliable way to move fresh produce from her garden to sell at markets.
The 41-year-old mother of seven from the Omoro District in Uganda worked hard to grow her produce, but it was expensive and difficult to get her products to a place where they could be sold. Her transportation costs often cut into what earnings she did have and limited her opportunities to grow her income.
Today, she owns a motorcycle.
This purchase was made possible through her participation in a community-based microfinance savings group. These groups provide affordable banking services — like instant small savings and loans with manageable interest rates — to those who lack access to traditional financial systems.
Where many families in the Omoro District, like Jackline’s, once struggled to safely save, invest and manage money efficiently due to limited local financial services, microfinance is filling the gaps, according to program coordinator Ogot Saida.
“Microfinance is very important,” Saida said. “When we look at villages, the financial institutions are non-existent. The people have challenges with traveling to access those options, like savings and taking up loans. Now, with microfinance, they are able to access these funds.”
Saida said the larger institutions in towns closest to the villages cannot always efficiently offer these services to members of such small communities. So, microfinance programs work with smaller groups of 20-30 people and provide them with access to financial services.
The significance is already evident, Saida said. Now, 13 community members have their own small businesses started with microfinance services.
One of them — Otim Dennis, a 44-year-old married father of five — was able to acquire better financial literacy, savings discipline and responsible borrowing skills to invest in soybean farming and livestock through his savings group membership.
Adongo Vicky, a 45-year-old married mother of three, is another Omoro resident benefitting from microfinance. She became a member of a savings group, which provided her with loan management and repayment training sessions. Her involvement has allowed her to invest in a small-scale tomato farm business, generating a steady weekly profit that has greatly improved her family’s standard of living.
“Above all, we’ve seen the importance of bringing people together — that bond, that unity among the community members,” Saida said.
Microfinance has also been an avenue to faith for several participants, Saida said. The program moderated spiritual discipleship through Bible study sessions, resulting in 19 total decisions for Christ.
“As we integrate the spiritual aspect of the program, people’s mindsets spiritually have transformed,” Saida said. “The central point is God and glorifying Him. A number of people have been able to get saved and reconcile their families. It’s been amazing — supporting these people.”
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