BY D SEBUNYA: The crucial role of community savings and credit groups in Uganda’s socio-economic development was once again brought to the fore at a recent symposium held at Gudie Leisure Farm.
The event underscored the ongoing challenges these groups face and introduced new initiatives aimed at empowering youth through financial literacy, affordable credit, and skill development.
The symposium, which drew representatives from government institutions, development partners, and NGOs, focused on the obstacles impeding the growth of savings and credit groups, particularly in rural areas.
Experts pointed out that while these groups have significantly contributed to local wealth creation and socio-economic transformation, they continue to grapple with issues such as inadequate infrastructure, restricted access to financial services, and high-interest rates.
One of the key topics discussed was the lack of financial literacy and inadequate credit histories among group members. Experts emphasized that these factors, coupled with the underutilization of online learning resources, are major barriers to the broader acceptance and success of savings and credit groups in Uganda.
Professor Gudula Naiga, the founder of Gudie Leisure Farm, highlighted the importance of providing youth with the tools needed to build profitable and competitive financial services.
“Given that our youth have started saving, engagements like this allow us to connect with potential partners who can provide additional capital and help reduce the interest rates on loans for our youth,” she said.
In line with these efforts, Gudie Leisure Farm has launched Parish Entrepreneurship Learning Associations (PELA), which coordinate youth business activities at the parish level. These PELAs have been instrumental in mobilizing and organizing youth into business groups to meet market demands collectively.
According to Professor Gudula, the 873 PELAs currently operate with a net portfolio of 2.5 billion Uganda Shillings and are key to enhancing the technical and business skills of Youth Agripreneur Champions across Uganda.
In addition to skills development, PELAs serve as platforms for accessing affordable financial services. Through the Gudie Agribusiness Investment Club, PELA members can save and access credit at an interest rate as low as 0.5% per month. This initiative, which addresses the challenge of limited access to large capital, has already amassed 1 billion Uganda Shillings in savings.
The symposium also addressed the increasing threat of youth-targeted scams, including fraudulent schemes perpetrated by false pastors and deceptive programs. Participants were urged to stay vigilant and informed to protect themselves and their savings.
The significance of these efforts was underscored by Uganda’s 2024 census, which revealed that the country’s population stands at 45.9 million, with a significant portion—72 percent—aged 30 years and below. This demographic highlights the urgent need for strategies that secure the economic future of the nation’s youth.
As the country continues to grapple with these challenges, the symposium at Gudie Leisure Farm marks a significant step toward empowering Uganda’s youth through sustainable financial practices, ensuring that community savings and credit groups can continue to thrive and contribute to the nation’s socio-economic growth.