The French government is committing UGX 2.64 billion (660,000 Euros) to support the second phase of a refugee credit financing initiative in Uganda. The funding, channeled through the French Ministry for Europe and Foreign Affairs and Proparco, an arm of the French Development Agency (AFD) focused on private sector support, will provide technical assistance to the project led by the Grameen Crédit Agricole Foundation, in collaboration with UGAFODE Microfinance and VisionFund Uganda.

Titled “Expanding Financial Inclusion for Refugees and Host Communities in Uganda,” the initiative is focused on broadening access to financial services for both refugees and host communities. The project includes the rollout of digital tools and targeted training programs. Key activities include: capacity-building for microfinance institution staff to improve service delivery to refugee populations; training sessions for clients covering financial services, digital tools, and business management; and efforts to enhance digital systems that will streamline operations and reduce costs.

In addition to enhancing operational efficiency, the project will focus on developing more inclusive financial products, with a particular emphasis on improving access for women. Uganda currently hosts approximately 1.93 million refugees, the highest number on the African continent. Since the beginning of the year, nearly 600 new refugees have arrived in the country daily. Over half of these individuals are under 18 years old, primarily originating from South Sudan and the Democratic Republic of Congo.

The first phase of the project, which launched in 2019, enabled nearly 100,000 refugees and local residents to access customized financial services. This was made possible through the establishment of financial service branches in refugee settlements such as Nakivale, Kyangwali, Moyo, and Yumbe, according to the French embassy in Uganda.

"This new phase aims to strengthen the two MFIs’ capacity to develop innovative and inclusive products (particularly targeting women), to train both staff and clients, and to support the digitalization of services," the embassy says.

Jean Guyonnet-Dupérat, Regional Director at Proparco, emphasized the dual benefit of the initiative: “Supporting financial inclusion for refugees and host communities in Uganda is both a social necessity and an economic opportunity. With this project, nearly 25,000 clients will gain access to tailored financial services by 2027, showing that inclusive finance in fragile contexts can be viable and transformative. We are proud to work alongside the partners to turn this ambition into reality.”

Proparco’s involvement aligns with France’s broader commitment to enhancing financial inclusion for vulnerable populations in Uganda, especially women and youth. Since 2022, the AFD has been advancing this mission through the ReFine project, led by Mercy Corps in partnership with Kiva, Cohere, UGAFODE, VisionFund, and FINCA. This initiative addresses the systemic obstacles preventing refugee access to financial services.

VisionFund Uganda’s CEO, Mercy Sande, reaffirmed the organization’s alignment with this goal: “Financial inclusion is one of our key priorities as it aligns with our vision of impacting children. Therefore, as we serve the refugee and host community through innovative and inclusive products, we will certainly continue to broaden our impact in these communities.”

UGAFODE CEO Shafi Nambobi added, “Through this collaboration, we continue to empower small holder farmers and vulnerable groups to build resilience and sustainable livelihoods by providing access to savings, loans, money transfer services, and financial literacy, drawing on both our successes and lessons learned along the way.”

Grameen Credit Agricole, which works in partnership with the French Development Financial Institution (DFI) Proparco, has committed to ongoing efforts to develop inclusive and sustainable market systems for refugees and host communities in Uganda.

“The new project aims to build on the successes and lessons from the field to support more access and usage of financial products by refugees and host communities. It also aims to strengthen the financial and digital capacities of the end clients so they can move into more complex financial products as their businesses continue to grow,” said Hanadi Tutunji, Head of Technical Assistance at Grameen Credit Agricole.