Background:

SEPSPEL entered into contract with CARE International in Uganda to implement the Banking on Change Project II (BOC II) in 2013. BOCII was funded by Barclays Bank UK through CARE International in Uganda. It was a 27 months (2 years and 3 months) project running up to December, 2021.
The BOC II project was a brilliantly designed program that was based on past programming efforts that effectively responded to the needs of the target communities, empowered them to mobilize their own savings and use the power of numbers to build leverage and access the hitherto ‘hard to reach’ financial space where they can access more financial services like credit. The project focused on enhancing the capacity of rural communities (youth of 15-24 years) to effectively establish and manage VSLA groups as well as facilitating linkages to formal financial institutions.

Project Goal: To bring on board financially excluded youths (15-24yrs) to have a sustainable and improved livelihood.

Purpose
The project aimed at increasing access to financial services for 11,650 economically active poor people (75% youth) and also enhancing their capacities to start and sustainably manage their IGAs through SPM/ABT, Bank linkages, Financial Literacy and employability skills trainings

BOCII Project Objectives:

• Facilitate formation and establishment of 466 VSLA groups(15% pure youth groups) with 75% youth membership by the year 2021
• To build the capacity of 466 VSLA (40% youth members) in Business skills(SPM),enterprise development (ABT), Financial literacy, and employability skills by the end of the year
• To Facilitate financial linkages for 390 mature youth VSLAs (22% being new groups) to access other financial services from formal and informal financial institutions by the end of the year
• To promote Linkage Banking as a sustainable model for financial inclusion
Project Targets:

1. Target-Formation
11,650 clients from 466 newly formed youth groups from the 4 Districts and 21 targeted sub counties.

2. Target –Linkage Banking
9,750 members 78% from the BOC I carry over groups and 22% members from new youth groups to access other formal financial services under the linkage arrangement

During the year 2021, BOCII project activities included:
• Community mobilization and sensitization for youth group formation,
• Training of Youth groups in the VSLA Methodology,
• Rating and selection of groups for linkage,
• Identification and training of groups on Selection planning and Management (SPM),
• Linking of groups to Barclays Bank,
• Monitoring and support supervision to formed/ linked groups,
• Administering of pre and post assessment and data collection on carryover groups.
Key achievements in the year:

• 235 Youth VSLA groups were formed leading to a cumulative total of 490 youth VSLAs currently saving. The groups mobilized a cumulative saving of 394,523,000= and 65,192,130= as retained earnings.
• 250 groups were linked (opened up accounts) with Barclays Bank while 66 VSLAs from carry over groups were rated, formally registered, trained in bank literacy and submitted to the bank for account opening.
• 7,857 members were trained in SPM leading to a cumulative number of 9,087 members to date
• A total of 7,286 members received trainings in Financial Literacy leading to a cumulative figure of 9,386 members to date

Project Impact on the lives of VSLA members: The case of Mzee Igulo:

Mzee Igulo Paul 64 years is a founder member and former chairperson Bugaba Farmers group the current Ndimugezi VSLA in Kawete Village, Namungalwe Parish Namungalwe sub county Iganga District. He is married with 6 children of whom2 are graduates from Makerere University, 2 are still pursuing their bachelors at Makerere and Kyambogo while the other 2 are qualified grade five teachers. Mzee Igulo has for long been a practicing farmer engaged in many enterprises especially maize, G.nuts, Coffee, and poultry as well. He says that ‘though he has been progressing fairly well with such enterprises, his dream of being a model farmer within the area and engaging in farming as business had hit a bare ground.
In May last year 2021 Mzee developed a new business idea of engaging in horticulture and zeroed down on passion fruits because of its profitability and readily available market.By end of May he had already prepared the field and being a member of a savings group (Ndimugezi), he secured a loan worth 1,200,000= to procure the seedlings, drugsand other materials (wires and strings). He says he procured over 550 seedlings which he planted and all successfully germinated.

In October-November flowering began and at that stage he started applying liquid fertilizer (di-gro) to boost the yielding. Mr. Igulo says that towards end of December 2015, he gradually started harvesting and selling to the immediate local markets within the area and to some community members at a price ranging between 3000-3500= per Kg. Currently he sells between 150kgs-200kgs per week earning between 525,000-700,000=on farm. He says being a VSLA member has enabled him reached this far and looks forward to encouraging other group/community members to emulate him.

Mzee Igulo happily reaping what he sow