Posted on October, 17, 2024 at 12:21 am
PostBank Uganda and the International Fertilizer Development Centre (IFDC) have launched a partnership aimed at improving financial inclusion for thousands of rural farmers.
Speaking at the launch in Mbale, eastern Uganda, Brenda Mpoora, Head of Fintech Business at PostBank Uganda, said the initiative would bridge the financial inclusion gap in rural areas.
“The partnership will enable farmers to access financial services securely and conveniently,” Ms. Mpoora said. “Through Wendi Mobile Wallet, farmers will earn a 10% interest per annum on their daily savings and access credit facilities.”
Uganda’s agricultural sector employs 70% of the working population, but farmers face difficulties accessing financial services due to high interest rates and limited banking infrastructure.
Ms. Mpoora added that the partnership would equip farmers with financial literacy skills, enabling them to make informed decisions.
“Our goal is to foster prosperity for Ugandans, particularly in rural areas, by providing innovative financial solutions tailored to their needs,” she said.
Roger Gilbert Nyakahuma, IFDC BRIGHT project Financial Inclusion Manager, praised PostBank Uganda for its innovative approach. “Wendi Mobile Wallet is a game-changer in scaling access to financial services in areas without physical banking facilities,” he said.
The IFDC’s BRIGHT project identified key bottlenecks to financial inclusion, including high interest rates ranging from 22% to 120% per annum, limited awareness of financial services, and lack of physical banking facilities.
The partnership aims to reach 40,000 farmers through 1,300 Village Saving and Loan Associations (VSLAs) across Elgon, Rwenzori, and Kigezi regions.
Agriculture accounts for 26.42% of Uganda’s exports and contributes 1.65% to the GDP. The sector employs 70% of the working population and provides the first job for three-quarters of those aged between 15 and 24 years.
Source: PML Daily