Case Study of FINCA Uganda
This case describes the FINCA (The Foundation for International Community Assistance), Uganda (FU), mission to empower Uganda's poor communities, especially women, through microfinance services. The rationale is that education, nutrition and good health can cause a difference.
FINCA services needy clients that have a viable business, including single mothers, AIDS affected people and political refugees. The Foundation forms groups and addresses demands through well defined guidelines. Its branches are spread across the country and these are serviced through village bank lending, credit and life insurance and group personal accident policies and products.
FINCA has achieved the following results:
- Microfinance services have filled a big need;
- Doorstep services are available now.
As per the paper, the major programmatic impacts are:
- Income generation;
- Savings mobilization;
- Contributions to the local economy;
- Social aspects.
Some challenges that FINCA faces in accomplishing these impacts were:
- Cultural inhibitions;
- Funding;
- Infrastructure;
- Client insecurity and illiteracy;
- HIV-AIDS and other ailments;
- High operating costs;
- Clients attrition;
- Political interference;
- Staffing;
- High involvement of labor.
The author also offers some policy and donor recommendations based on the FINCA experience:
- Blueprint approach needs to be changed;
- Only sustainable programs should be funded;
- Linkages should be encouraged;
- Market orientation is a must.
The case study concludes that gender targeted microfinance services can be very effective to fight poverty.
