FINCA Uganda has expressed commitment to integrating refugees into the Ugandan economy and promote self-reliance.
For over a decade, Uganda has been a refuge for more than 1.5 million displaced individuals fleeing conflict and persecution from neighboring countries such as South Sudan, the Democratic Republic of Congo, Ethiopia, and Somalia.
While this humanitarian gesture is commendable, the increasing influx of refugees annually strains Uganda's resources, including land, water, and social services.
According to Alice Lubwama, the grants and business development manager of FINCA Uganda, they remain at the forefront of empowering refugees for a long time.
"Over the years, we have actively worked to foster financial inclusion and economic empowerment among refugees," Lubwama said.
"By collaborating closely with stakeholders, including the Government of Uganda, international NGOs, and local authorities, FINCA has implemented market-led interventions in key regions such as West Nile, Kiryandongo, Mubende, and urban Kampala."
She added: "These interventions aim to facilitate better integration of refugees into host communities, strengthen household resilience, stimulate economic activity, and increase household incomes."
Lubwama says FINCA's approach is rooted in the belief that refugees should be financially resilient and independent, with access to financial services forming the foundation for future financial autonomy.
"By focusing on economic empowerment, FINCA allows vulnerable individuals to live with dignity and contribute meaningfully to their host communities."
Lubwama further observes that one of the standout initiatives by FINCA is the refugee inclusion program, which has already made significant strides.
Over 5,240 beneficiaries, 65 percent refugees and 35 percent host community members have completed financial literacy training sessions under this initiative according to Lubwama.
She noted that many participants have opened individual savings accounts, while others have pooled their resources into group savings accounts to accumulate lump sums for gradual development, ultimately improving their livelihoods.
FINCA has invested over Shs1.6 billion to support these refugee initiatives, providing loans to over 920 individual refugees and 15 SACCOs/VSLA groups that include both refugees and host community members.
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These loans target to enable refugees start and grow micro-businesses, thereby fostering economic independence.
However, many refugees still rely on informal loans, which are often expensive and can lead to a cycle of debt due to their precarious circumstances and lack of access to formal financial services.
Lubwama notes that FINCA is determined to ensure that individuals and businesses have convenient access to and can use affordable and suitable financial products and services that meet their needs and improve their lives.
She says this vision encompasses the responsible and sustainable provision of loans, savings, and money transfer services.
"It is thus crucial for us to recognize that much work remains to be done. However, the foundations we have laid provide a robust platform for further expansion and deeper financial inclusion for refugees," Lubwama said.
"By continuing to support and invest in these programs, we can help build a future where refugees are not just surviving but thriving, contributing to and benefiting from the economic prosperity of their host communities."
