The impact of three microfinance programs in Uganda

The impact of three microfinance programs in Uganda

This assessment of three USAID-financed microfinance programs in Uganda centers on the impacts of participation and whom the programs reach. The assessment focuses on the clients of FINCA, FOCCAS, and PRIDE. It covers clients and a non-client comparison group in rural Mbale district, the capital city of Kampala, and Masaka town and its periphery. The results indicate that these programs are reaching their target groups. Moreover, the findings indicate that program participation leads to positive impacts.

The results provide strong evidence of impacts for those re-interviewed. The 22 percent of the original client sample who were not re-interviewed tended to have different personal characteristics but did not differ from the clients re-interviewed in terms of the number of loans they had received by the time of the 1997 interview. Thus, the impact findings are definitive in terms of those re-interviewed and indicate in general the impacts from participation in the MFI branches studied. Since the impact results are similar to those found in other studies undertaken in Uganda, the similarity underscores the strength and the conclusions reached in this assessment. The information from the randomly selected clients and non-clients who were re-interviewed makes a strong case that on a number of variables positive changes are more likely to occur with, rather than without, participation in these programs studied. [From the author]