Microfinance is a banking service provided to low-income individuals or groups who otherwise would have no other access to financial services. Microfinance allows people to take on reasonable small business loans safely, in a manner that is consistent with ethical lending practices.
Microenterprises are small businesses that are financed by microcredit, a small loan available to people who have no collateral, credit history, savings, or employment history. The modest loans are often sufficient to get a small local business off the ground.
The main service provided by MFIs is increasing access to micro-scale funding for MSMEs. This is beneficial for people who do not have access to a bank account (unbanked) or who do not have collateral. Both can get access to financing through MFIs to continue their business and increase community productivity.
We train and build capacity of rural farmers and small enterprise with financial literacy and entrepreneurship skills.
In most parts of Africa, research has shown that most rural farmers have often been left out of the financial systems and has left them at the mercy of middlemen who do marketing and distribution of the farm produces causing significant losses to farmers due to commissions.
RHAC-Uganda underscores the need to develop the rural farmers to increase profitability of their produce and develop beyond into media/large scale farmers.
Women entrepreneur groups have also formed functional VSLAs, that have improved their saving culture, peaceful coexistence, and business progress.
