ECLOF
Uganda explains how determination, discipline and ECLOF
have changed the lives of six people and their families
in Uganda
Take
four hardworking women and two hardworking men, put them
together with an ECLOF loan, and what do you get? The answer
is the successful St. Agnes Mixed Group of Uganda.
Originally,
the six each ran their own hawking and small trading businesses,
but in 1996 they decided to form a group in order to help
each other work together and improve their standard of living.
A
dynamic, determined and astute businesswoman heads the St
Agnes Mixed Group as its chairperson. She heard about ECLOF
through a friend and contacted our office. At first, we
were somewhat reluctant to accept the group because we were
not sure of the viability of their plans. However, the chairperson
convinced us that the group’s aim to expand its existing
retail shop was realistic.
In
February 1998 we granted a first loan of 1 million Ugandan
shillings (about US$1,000). The group’s business activities
went well and they paid off the loan within the required
six months. Then, the group immediately took a second loan
of shs3 million, to be paid off over 12 months. In fact,
the group repaid before the end of the year.
The
St Agnes Mixed Group’s shop initially sold women and
children’s wear. Now they have increased their range
to include men’s shirts and trousers, blankets, bed
linen, mattresses and suitcases.
The
group recently took out a third loan of shs9 million and,
as far as the members are concerned, the sky is the limit;
they hope one day to own a supermarket!
Achievements
& challenges
As
a result of their ECLOF loan, St Agnes members have more
than tripled their income. This means they can meet their
basic daily needs including medical expenses and school
fees. A management committee co-ordinates activities and
ensures proper records are kept. The group’s treasurer
is responsible for buying stock and looks after all banking
matters for the group.
St
Agnes Mixed Group however is not problem-free. The members
face stiff competition from other similar businesses in
the market where their shop is situated. As a result, stock
turnover can be slow and this leads to reduced revenue for
the group.
The
cost of renting their shop is high and rents have to be
paid three months in advance.
The
group needs more training in business management and entrepreneurial
skills, though at the moment members are handling these
aspects of their business adequately.
On
target
The
experience of the St Agnes Mixed Group shows how an ECLOF
loan can help committed people grow from humble beginnings
to greater heights. The group members have each received
limited education in their lives but they have shown themselves
to be responsible, committed and hardworking. These are
precisely the active poor who are the targets for ECLOF’s
credit products.
The
St Agnes chairperson has introduced other groups to ECLOF
Uganda, having first told them that they must be prepared
to work hard and repay any loan they might receive on schedule.
We have already made loans to some of these groups and are
currently processing applications from a number of others.
In
a related development, the chairman of one group swindled
his fellow members out of money intended for the repayment
of their ECLOF loan, and went into hiding. The St Agnes
chairwoman went into action and mobilised the remaining
members so that they could pay off their outstanding loan
balance.
Even
with such a problem as this, ECLOF Uganda is proud to be
providing group lending and supporting the Ugandan community
at large.
