Business Group named Anyawi Amami saved by FINCA Uganda
By Our Reporter
A seven-member business group in Ayilo 1 Refugee Settlement has been spared a potential financial setback after receiving timely support from FINCA Uganda’s Small Managed Group (SMG) Reserve Fund.
The Anyawi Amami Business Group, comprising members from both refugee and host communities in Pakele Subcounty, encountered repayment difficulties when one of its members abruptly relocated to Juba, South Sudan, leaving behind an unpaid loan balance of Shs 800,000. As a result of the arrears, the group became ineligible for additional financing until the outstanding amount was cleared, affecting even members with strong repayment records who depended on new capital to sustain their enterprises.
Situations of this nature are not uncommon in group lending models, where members share collective responsibility for loans. FINCA Uganda’s SMG Reserve Fund was established to help groups navigate such challenges, enabling them to recover from disruptions while preserving group cohesion and continued access to credit.
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Business Group named Anyawi Amami saved by FINCA Uganda
By Our Reporter
A seven-member business group in Ayilo 1 Refugee Settlement has been spared a potential financial setback after receiving timely support from FINCA Uganda’s Small Managed Group (SMG) Reserve Fund.
The Anyawi Amami Business Group, comprising members from both refugee and host communities in Pakele Subcounty, encountered repayment difficulties when one of its members abruptly relocated to Juba, South Sudan, leaving behind an unpaid loan balance of Shs 800,000. As a result of the arrears, the group became ineligible for additional financing until the outstanding amount was cleared, affecting even members with strong repayment records who depended on new capital to sustain their enterprises.
Situations of this nature are not uncommon in group lending models, where members share collective responsibility for loans. FINCA Uganda’s SMG Reserve Fund was established to help groups navigate such challenges, enabling them to recover from disruptions while preserving group cohesion and continued access to credit.
According to Assina Araba, Chairperson of the Anyawi AmamiBusiness Group, the intervention came at a critical moment. She explained that during one of their biweekly meetings, their Relationship Officer informed them about the initiative, which supports groups whose members have been in arrears for more than 60 days. The group was advised to raise at least half of the outstanding balance, after which FINCA would cover the remaining portion. This arrangement allowed them to clear the arrears and qualify for a new loan cycle.
The group operates small-scale businesses including fresh food vending, produce trading and grocery retail. While some members, such as Assina and Andrisi Rukia, have consistently maintained good repayment records, others are steadily building their stock and strengthening their working capital under the current loan cycle.
Through the SMG Reserve Fund, FINCA Uganda has assisted several groups that previously struggled with unpaid balances. The mechanism encourages members to mobilize savings collectively to offset part of the arrears, after which the fund steps in to bridge the gap, restoring the group’s borrowing eligibility.
Disan Katabalwa, Deputy Project Manager at FINCA Uganda, said the fund was created to shield lending groups from unexpected shocks that could derail their progress. He noted that in settlement communities, where incomes can be irregular and vulnerable to disruption, timely financial support is essential to ensure continuity in business operations and access to credit.
Branch Manager Ada Jackline commended the Anyawi group for its determination and discipline in addressing the challenge. She said the intervention not only prevented default but also reinforced financial responsibility and long-term client retention within lending groups.
Financial analysts observe that such reserve mechanisms are particularly important in refugee settlements, where most economic activities are informal and susceptible to sudden changes. With the support received, the Anyawi AmamiBusiness Group has regained stability and continues to serve customers within Ayilo 1 Settlement and neighboring communities.
