At a Glance
- Partnership expands financial inclusion for refugees through UGAFODE and VisionFund Uganda.
- Initiative backed by France enhances access to credit, savings, and digital finance tools.
- Program targets women and youth, promoting livelihoods and economic resilience in host communities.
Proparco, the private-sector arm of the French Development Agency (AFD) Group, has partnered with the Grameen Crédit Agricole Foundation to expand financial access for refugees and host communities in Uganda.
Backed by the French Ministry for Europe and Foreign Affairs, the initiative enters its second phase with UGAFODE Microfinance Limited and VisionFund Uganda, two of the country’s leading microfinance institutions.
The new phase builds on earlier work by widening outreach through digital tools, inclusive lending models, and financial training programs aimed particularly at women and young people. The first phase, launched in 2019, reached nearly 100,000 people with savings accounts, microloans, and financial literacy support.
Expanding Access Through Innovation and Inclusion
Uganda hosts about 1.93 million refugees — the most in Africa — yet many remain outside the formal banking system. Proparco and the Grameen Crédit Agricole Foundation hope to change that by helping local lenders develop flexible financial products suited to displaced families and their host communities.
UGAFODE and VisionFund Uganda will strengthen their digital platforms, train loan officers, and roll out services such as micro-savings and adaptable credit facilities. The program will also expand financial and digital literacy, enabling clients to manage income, run small businesses, and plan for the future.
Jean Guyonnet-Dupérat, Proparco’s regional director, called the effort “both a social necessity and an economic opportunity,” adding that by 2027, an additional 25,000 people are expected to gain access to tailored financial services.
Building on Lessons From the Field
The expansion draws on lessons from the first phase, which worked with the UN Refugee Agency to establish microfinance branches in refugee settlements such as Nakivale, Kyangwali, Moyo, and Yumbe. The results showed that refugees can be dependable clients when given access to financial tools and training.
UGAFODE Chief Executive Shafi Nambobi said the next phase aims to deepen that progress. “We’re helping smallholder farmers and vulnerable families build sustainable livelihoods through savings, loans, and financial education,” he said.
Mercy Sande, CEO of VisionFund Uganda, emphasized the broader mission: “Financial inclusion affects families directly — it helps parents secure income and invest in their children’s futures.”
France’s Wider Commitment to Inclusive Finance
The initiative fits within France’s broader effort to support inclusive finance in fragile settings. Since 2022, AFD has backed the ReFine project, implemented by Mercy Corps with UGAFODE, VisionFund, FINCA, Kiva, and Cohere, which has provided training and affordable credit to more than 2,000 refugees in Kampala and West Nile.
Hanadi Tutunji, head of technical assistance at the Grameen Crédit Agricole Foundation, said the new phase builds on “lessons from the field” to help clients not only access credit but also grow into more advanced financial products as their businesses mature.
Strengthening Resilience and Livelihoods
By supporting both refugees and host communities, the program aligns with Uganda’s inclusive refugee policy, which promotes self-reliance and integration rather than long-term aid dependence.
It also supports the Refugee and Host Community Empowerment framework, aimed at improving livelihoods in displacement-affected areas.
With hundreds of new arrivals each day, Uganda faces mounting pressure to create economic opportunities for refugees. The partnership between Proparco and the Grameen Crédit Agricole Foundation aims to scale sustainable solutions that blend social impact with practical finance.
If successful, the program could become a model for other African nations, showing how collaboration and steady investment can turn financial inclusion into lasting opportunity.
