Microfinance and Energy Clients Win with Partnership Model in Uganda: A Case Study of FINCA's Microfinance and Renewable Energy Pilot Activity
This Financial Integration, Economic Leveraging and Broad-Based Dissemination (FIELD) brief provides an overview of Foundation for International Community Assistance’s (FINCA) microfinance and energy pilot activities in Uganda.
In 2008, FINCA Uganda developed the microenergy loan program to finance and create access to Solar Home Systems (SHS) for its existing client base and new, low-income customers. During November and December 2009, FINCA partnered with Micro Energy International to measure the impact of SHS on clients’ lives. Findings include:
- Clients were very satisfied with FINCA’s services, SHS and loan disbursement process;
- SHS was too costly;
- SHS had improved their lives through health and education benefits, and increased savings and income generation opportunities;
- SHS had helped them save on kerosene and mobile phone charging costs;
- Clients used SHS in their businesses such as poultry farming, pig farming, clinics, retail shops, schools and salons.
FINCA Uganda plans to scale up the microenergy loan program to make it a financially sustainable and profitable business. It has begun to mobilize funds for operational expansion and address challenges identified in the pilot phase.