Loan federations to support over 7,000 refugees, Kamwenge residents

KAMWENGE - Seven Village Savings and Loan Federations (VSLFs) have been launched under the REAL project to support refugees in Rwamwanja and Kyaka, Kamwenge district.

Under the theme: Saving Together, Growing Together, the initiative aims to improve food security and strengthen resilience for 5,880 refugees and 2,520 members of the host community by 2026.

The VSLFs: Four in Rwamwanja and three in Kyaka, are supported by the Ministry of Foreign Affairs of Denmark, Novo Nordisk, the FAHU Foundation and ADRA International.

Speaking at the launch in early May 2025, Jerry Kiwanuka, the Resilience Enhancement for Adapting to Sustainable Livelihoods (REAL) project manager, said the federations bring together multiple VSLAs to collectively pool resources and invest in viable economic ventures such as farming and value addition, enhancing access to financial services and development opportunities.

“The VSLFs unite VSLAs to enable members to grow their savings and invest in sustainable income-generating activities,” Kiwanuka said.

In Rwamwanja, the federations include Bisozi Processing and Traders, Rwamwanja Farmers and Credit, Tungane Mukono, and Turimbere VSLF.

In Kyaka, they include Sweswe United, Power With (comprising nine VSLAs), and NOTED (comprising eight VSLAs). Collectively, the groups have saved over shillings 18 million, with 16.87 million already disbursed in loans to members.

Mugisha Godfrey, the VSLF advisor for Rwamwanja, lauded ADRA's impact on livelihoods through training in climate-smart agriculture.

“They taught us proper crop spacing, pesticide use, marketing skills, and environmental conservation. Financial literacy and VSLFs have further empowered our communities,” he said.

Katushabe Moses, the commercial officer for Nkoma-Katalyeba town council, praised the project's inclusivity, which targets both refugee and host communities. He pledged continued district support and cited the upcoming government initiative, Smart Climate, as a complementary effort.

Emmanuel Naturinda, the deputy mayor of Rwamwanja, emphasized the importance of food security in achieving wealth creation and social stability. He also called for improved nutrition and condemned domestic violence as a barrier to community development.

Representatives from key partners, including Charles Okumu from UNHCR and Sarah Achieng, the Office of the Prime Minister’s livelihoods focal person, commended ADRA’s work. Achieng encouraged beneficiaries to manage their savings wisely and pledged to advocate for expansion of the initiative.

ADRA’s Monitoring, Evaluation, Accountability, and Learning (MEAL) Officer, Nakato Farida, said the VSLFs were introduced to address concerns about over 300 VSLAs in Rwamwanja that previously saved primarily for non-essential expenditures.

“VSLFs promote collective investment and enhance access to larger financial opportunities,” she said.

Beneficiaries shared testimonies of transformation. Florence Nyirabashete, a goat farmer, said a UGX 1 million loan from her VSLF enabled her to expand her business.

“ADRA trained us in financial literacy, nutrition, and modern farming. As women, we’re now confident and independent,” she said.

Robert Tugume, a VSLA chairperson, started poultry farming with 50 birds and has since earned a profit of over shillings 500,000. “ADRA taught us to start small, start well, and start now,” he said.

The launch, attended by key stakeholders including the refugee welfare council chairperson Innocent, marked a major milestone in building economic resilience and self-reliance among refugees and host communities in Kamwenge.