PostBank Uganda, in collaboration with the International Fertilizer Development Centre (IFDC), has launched a new initiative to enhance financial inclusion for farmers in Uganda’s highland regions.
Through the Wendi Mobile Wallet and IFDC’s BRIGHT (Building Resilience and Inclusive Growth of Highland Farming System for Rural Transformation) project, the partnership aims to improve access to financial services for smallholder farmers via Village Saving and Loan Associations (VSLAs).
The BRIGHT project baseline survey, conducted in the Rwenzori, Kigezi, and Elgon regions, revealed several challenges faced by farmers, including high interest rates, limited access to financial institutions, and a lack of awareness about available financial products.
The partnership seeks to address these issues by linking VSLAs to PostBank’s Wendi mobile wallet, providing farmers with a secure savings platform that offers a 10% annual interest rate on daily savings and access to credit services.
Brenda Mpoora, PostBank’s Head of Fintech Business, emphasized the bank’s commitment to fostering economic growth by providing innovative financial solutions tailored to the needs of smallholder farmers.
“We are empowering communities by offering them financial services that are accessible and practical,” she said during the launch of the partnership.
The project targets over 1,300 VSLAs across the Elgon, Rwenzori, and Kigezi regions, with a projected reach of 40,000 farmers.
Roger Gilbert Nyakahuma, IFDC BRIGHT project Financial Inclusion Manager, praised the partnership as a significant step toward bridging the financial inclusion gap for rural farmers, especially in areas lacking traditional banking infrastructure.
“The objective of this partnership is therefore to facilitate the linkage of BRIGHT project VSLAs to the Wendi mobile wallet solution to improve access to financial products and services as well as address some of the challenges that were identified during the BRIGHT project baseline survey conducted in Rwenzori, Kigezi and Elgon regions where the project is being implemented,” Nyakahuma said.
With agriculture being a cornerstone of Uganda’s economy, employing 70% of the rural population, this initiative is set to bolster financial literacy and accessibility in the sector.