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Ugandan youth thriving through community-based savings and credit initiative

23 July 2024, 11:32 am

By Byamukama Alozious

In a remarkable demonstration of financial empowerment, Ugandan youth are transforming their economic futures through the community-based savings and credit initiative spearheaded by Gudie Leisure Farm’s Parish Entrepreneurship Learning Associations (PELAs).

This initiative has mobilised over 873 youth groups across the country, comprising 388,513 members, and has fostered a culture of savings and responsible borrowing.

With a total net portfolio of 2.5 billion UGX, PELAs have become a beacon of hope for young people seeking to overcome financial exclusion. By saving and accessing credit at a rate of 0.5% per month, youth are breaking free from poverty and unemployment.

The initiative has inspired a new generation of entrepreneurs, farmers, and innovators. “PELAs have transformed our lives,” says Tualib Onzima, a member and beneficiary. “We’ve learned to save, invest, and build businesses. Our futures are brighter than ever.”

One of the youth in his tomato garden.

In certain districts, the impact is particularly inspiring. In Kiryandongo district, 60 parishes have already accumulated 130 million UGX. In Isingiro district, 37 parishes have saved 369 million UGX, while in Lwengo district, 32 parishes have saved 207 million UGX. Nwoya district has seen 32 parishes save 160 million UGX, among others.

“We are thrilled to see the progress our youth are making,” says Prof. Gudula Naiga Basaza, founder of Gudie Leisure Farm. “Our goal is to empower them with the skills and resources they need to succeed, and we’re proud to be making a tangible difference in their lives.”

Gudie Leisure Farm’s innovative approach has created a ripple effect, influencing policy and practice in Uganda’s financial inclusion landscape.

The upcoming Savings and Loans Associations Cottage Industry Conference on 5 August 2024 will showcase the impact and potential of community-based savings and credit initiatives. Nampeera Florence, a board member of the Gudie Umbrella Fund, notes that the event is expected to attract 300 youth who are members of PELA.