In the vast Nakivale Refugee Settlement in South Western Uganda, a remarkable transformation is taking place. Equity Bank has embarked on a groundbreaking initiative, turning refugees into thriving entrepreneurs through micro-credit and micro-enterprises. This initiative is reshaping the lives of thousands of refugees, providing them with a path to self-sufficiency and economic stability.
When refugees settle in a host country, they aim to build a new life, achieve self-sufficiency, and contribute positively to their communities. However, the journey is fraught with challenges, especially when it comes to starting a business. Refugees often find themselves cut off from essential credit, investment, and other critical financial services, hindering their ability to build a better life.
Uganda, which hosts over 1.5 million refugees across urban areas and 13 rural settlements, has recognized the potential of entrepreneurship as a powerful tool for economic and social inclusion. The United Nations High Commissioner for Refugees (UNHCR) supports this view, highlighting the effectiveness of promoting entrepreneurship among refugees in overcoming these challenges.
Equity Bank’s Initiative: A Journey from Aid to Independence
In 2018, Equity Bank initiated a program to extend financial support to refugees through social payments and Safety Net programs. By 2022, the Bank expanded its efforts, introducing micro-credit to refugee households. The goal was to enable refugees to start micro-enterprises within the camps, fostering economic independence and improved living standards.
The results have been remarkable. Lending has now reached over 400 refugee groups, with the involvement of 262 refugee agents facilitating the process. These agents have received loans worth UGX 311 million, while 3,662 individual refugees have taken out loans amounting to UGX 408.2 million. Refugee deposits have exceeded UGX 2 billion, reflecting a significant shift towards financial independence.
“This program is illustrative because it has helped to transition beneficiaries from systematic dependence on aid to economic stability and self-reliance,” says Elizabeth Mwerinde Kasedde, Equity Bank’s Executive Director of Public Sector and Social Investments.
Expanding Opportunities through Financial Inclusion
Equity Bank’s efforts extend beyond micro-credit. By integrating refugees into the formal financial system, the Bank has dramatically expanded its opportunities. Social Payments and Safety Net Programs in settlements like Nakivale, Kyakka II, Rwamwanja, Kyangwali, Imvepi, Palorinya, and Rhino Camp are now channelled through agency banking. This approach has led to the disbursement of UGX 135.3 billion in cash transfers across 10 settlements, with Bidibidi, Africa’s largest refugee settlement, recently joining the program.
Financial literacy education has also been a key component of the initiative. So far, 5,807 refugees have received training, with many gaining access to digital inclusion tools. This education empowers refugees to manage their finances effectively, further enhancing their economic prospects.
Supporting Vulnerable Populations
Equity Bank’s support for refugees is part of its broader social protection program aimed at empowering poor, vulnerable, and marginalized populations. To date, the program has reached 109,887 households, benefiting approximately 230,000 individuals. By providing micro-credit, financial education, and access to banking services, Equity Bank is playing a pivotal role in transforming the lives of refugees and fostering a culture of entrepreneurship.
In conclusion, Equity Bank’s innovative approach in the Nakivale Refugee Settlement is a piece of solid evidence of the power of financial inclusion and entrepreneurship in driving economic stability and self-reliance among refugees.
By bridging the gap between aid dependency and economic independence, the Bank is paving the way for a brighter future for refugees in Uganda.
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