Soluti Finance East Africa targeted Partners are those who provide products and services to the enterprise poor a case in point is HOFOKAM whose target group is the economically active poor and was visited by the Board in May 2017 to attest to this Vision and Mission of the company.
One of HOFOKAM’s lending methodology is through groups that has enabled them to reach their target clients. Busoru youth multipurpose association is one of HOFOKAM’s clients that has accessed credit facilities from HOFOKAM through its branch in Bundibugyo district, Uganda. The Association started in 1992 with 55 members of which 30 were males and 25 females. As at May 2017, the Association had a total of 58 members of whom 46 were females and 12 were male.
Busoru youth multi-purpose association members pose for a group picture with SMF EA board and staff members and Hofokam staff during a visit in Bundigyo.
Association’s Status before joining HOFOKAM
The association was undertaking its internal savings, credit and promoting farming before joining HOFOKAM. They later joined HOFOKAM in 2007 with 24 members of which 6 were males and 18 were females. The association has its leadership comprising of three executive members i.e. the chairperson, secretary and treasurer and six committee members who include; Vice chairperson, Vice secretary, Mobilizer among others. The Association is located in Busoru parish, Kisubba sub-county in Bundibugyo district, Uganda. It consists of restaurant owners, Cocoa and Palm Oil growers most of whom have taken loans ranging between UGX 500,000 (USD 136) and UGX10,000,000 (USD 2,726.
Hofokam Bundibugyo branch offices that works closely with Busoru Youth multi-purpose group.
“Our mission is to minimize poverty, uplifting living standards of the group members and educating the community on development issues.” Says, Mr. Patrick Kintu kihamba, the Association Chairman.
The Association hopes to achieve its mission through their objectives which are;
- To Increase household incomes through establishment of sustainable income generating activities.
- To promote a culture of savings and credit.
- To sensitize community members on HIV/AIDS prevention.
When the group had just joined HOFOKAM with 24 members they managed to borrow UGX 2,350,000 (Approx. USD671) which was disbursed on 5th November 2007. Currently the group is servicing a loan which was acquired on 4th August 2016 of Ugx 80, 00,000 (Approx. USD 22,669). This loan was distributed amongst all 58 members.
Purpose of the Loan
Most of the members of the group agreed initially to acquire the loan for various purposes that included; Cocoa farming/ trading, hire of cocoa gardens, purchase of land, Housing construction, School fees, and Palm oil businesses and Retail trading.
The current loan has enabled members of the group register significant achievements like increase in members’ household incomes, construction of residential houses, education for their children, attaining of literacy skills on finances through trainings and opening up businesses for themselves.
The current loan has enabled members of the group register significant achievements like increase in members’ household incomes, construction of residential houses, education for their children, attaining of literacy skills on finances through trainings and opening up businesses for themselves.
Safuroza a group member in a Blue T-shirt gives a site tour of her newly constructed house during an Soluti Finance East Africa board member visit in Bundibugyo.
Since most of the group members are farmers they formed a cooperative society known as Bubomboli cooperative society aiming at looking for better prices for their cocoa and to promote a culture of savings through encouraging members to buy shares as a way of savings.
The cooperative helps members whenever they are faced with emergencies by giving them access to income in advance to solve their problems like clearing medical bills, burial expenses and sometimes pay school fees. “The above benefits are only enjoyed by the members who have shares in the cooperative.” The chairman emphasized.
The cooperative also owns a store where they keep cocoa before selling it. They have procured furniture for it and they also have a moisture meter which they use to test the cocoa to see whether it’s dry and good for the market.
Challenges of the Group and Cooperative
As a group, the association does not have very many challenges other than the crop seasonality which affects their cash flows. Cocoa is a seasonal crop and the season runs only from September to April.“Since all members of Busoru youth multipurpose association are members of Bubomboli cooperative society, they are faced with inadequate financial resources.” Said the Chairman of the group.
A Board Member of Soluti Finance East Africa encourages the association members’ on issues presented during the visit.
Future ambitions of the group
The association is grateful for the financial and capacity training support that HOFOKAM offers them. Their lives have indeed greatly changed ever since they started accessing services from the institution. Some of the group members’ ambitions are to increase members’ house hold incomes, ensure their children access good higher education, construct good comfortable housing for themselves and grow their businesses.