Summa and the Uganda Private Providers Loan Fund (Investment Brief)

This document studies the impact of a microfinance program that provided finance and business skills training to its clients.

The document provides the following information about the Summa Foundation and its microfinance and business skills training program:

• Objective: to provide financing and business skills training to increase the viability of private practices, expand services, and improve the quality of care;
• Target clientele: small private providers, such as midwives, nurses, doctors, clinical officers and drug shops;
• Loan structure: identification of recipients through professional associations and direct marketing to private practices; loan amounts of $30 to $5000; loan periods of six to twelve months.

The document concludes by presenting the following findings about:

• Provider profile:
  • Majority of borrowers were midwives followed by nurses and clinical officers;
  • The maximum number of providers were found in peri-urban areas;
  • Most clients were from the lower middle income classes.
• Viability:
  • Although the program showed no significant impact on net income, there was an increase in savings.
• Service expansion:
  • There was a significant increase in the proportion of clients who obtained preventive services.
• Improving quality:
  • There were significant changes at intervention clinics in perceived quality indicators, including drug availability, fair charges, privacy, accessibility, and range of services offered;
  • Clients at intervention clinics were more likely to say that they always visited the same clinic.