Uganda Agency for Development

Gross Loan Portfolio USD, 2010: 3.0 million

Number of active borrowers 2010: 6,246

Average loan balance per borrower USD, 2010: 482.7

Deposits USD, 2010: 39,212.9

Assets USD, 2010: 3.4 million

Number of depositors 2010: —

Mission:

UGAFODE was founded in 1994 to help the poor in Uganda to create self-employment and to generate income by providing microcredit and financial training in ways that will transform lives.

Background and Main Challenges:

UGAFODE was established by a group of local business people, professionals, and church leaders under the guidance of the African Evangelistic Enterprises. UGAFODE’s program applies individual and solidarity loan products, but its Trust Bank loan product predominates. This program has been funded ... Read more

Address:

Plot 11/13 Nkrumah Road

Kampala

PO Box 30815

Uganda

Phone:

+256 41 235 771

Email:

admin [at] ugafode [dot] co [dot] ug

Website:

www.ugafode.co.ug

Main Funding Sources:

Grants

Loans

Products and Services:

Loans

Looking for (Investment Types):

Loans in Local Currency

Donations

Loans in US$

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1995

FYE:

31-Dec

Current Legal Status:

NGO

Regulated:

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Women	2
Clients living in urban areas	3
+ Development goals (ranked by importance)
Increased access to financial services	1
Growth of existing businesses	1
Poverty reduction	2
Employment generation	3
Gender equality and women's empowerment	4
Children's schooling	5
Improvement of adult education	5
Youth opportunities	5
Development of start-up enterprises	6
Health improvement	6
+ Poverty targets
Poor clients
Low income clients
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
Loans for education
Housing loans
+ Savings products offered
Compulsory savings accounts (cash collateral)
+ Compulsory insurance products required
Compulsory credit life insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
Financial literacy education
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use