Project for Financial Inclusion in Rural Areas: Will the objectives be achieved
Budget Monitoring and Accountability Unit
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The Government of Uganda (GoU) and the International Fund for Agricultural Development (IFAD) recognize the continuing need to promote rural finance, and the focus on financial inclusion as one of the key pillars of Uganda’s efforts to eradicate poverty. In line with that, the Project for Financial Inclusion in Rural Areas (PROFIRA) was designed in 2013 as a partnership between IFAD and GoU. The project focuses on the large portion of the rural population that has little or no access to financial services. In addition, it covers two rural institutions that have successfully demonstrated that sound and appropriate financial services can be provided to even the poorest members of rural communities: Savings and Credit Cooperatives (SACCOs), and Community Savings and Credit Groups (CSCGs). While the overall performance of the project is satisfactory, semi-annual fieldfindings by the Budget Monitoring and Accountability Unit (BMAU) for FY 2018/19, revealed some constraints that have negative impact on the achievements of PROFIRA objectives. All the constraints, however are surmountable, and their resolution would lead to higher performance levels by project end. This policy brief explores the performance and the challenges faced by the project, since inception in FY 2015/16, and proposes recommendations.
- Social Sciences