Uganda: The Provision of Microfinance in the Wake of Conflict
This document argues that the impact of conflict on operations is more stark for the formal financial institutions because they are located in the less stable areas. It sheds light on the strategies that can be employed under difficult circumstances in the provision of microfinance, along with the potential problems and successes of such endeavors. Specifically, the paper outlines issues of post-conflict microfinance service provision and discusses the major characteristics that differentiate it from standard service delivery sites. Focusing on the various institutions active in Ugandan micro-financial services, the paper:
- Examines the impact of conflict;
- Analyses how practices were adapted to the unique environment;
- Highlights various strategies and their implications, both for the successful provision of microfinance and for the organisation's sustainability;
- Looks at the implications for future developments and possibilities in post-conflict microfinance;
- Argues that the experience of the Ugandan MFIs provides examples of best practices;
- Offers recommendations on what methods would be most successful in the future.
It concludes that the poor, even in a post-conflict environment, are bankable and that profits await those institutions prepared to extend outreach to this new group.
