Question 1

What is UGAFODE Microfinance?

Accepted Answer

UGAFODE Microfinance is a regulated microfinance deposit-taking institution (MDI) operating in Uganda. Licensed and supervised by the Bank of Uganda, UGAFODE was the fourth MDI registered in the country. The institution specializes in providing affordable financial services to underserved communities, with a particular focus on micro and small enterprises, women entrepreneurs, and clients in both rural and urban areas.

As of October 2024, UGAFODE has total assets of approximately US$36.6 million (UGX 130.9 billion) and employs around 330 staff members. The institution operates 20 branches and 3 sales and customer service centres across Uganda.

Question 2

When was UGAFODE Microfinance founded?

Accepted Answer

UGAFODE was founded in 1994 as the Uganda Agency for Development Limited, originally established as a non-governmental organization (NGO). The primary objective at inception was to provide affordable financial services to customers, particularly women who were provided with group credit facilities.

In September 2010, UGAFODE Microfinance Limited was incorporated as a company limited by shares in preparation for its transformation into a microfinance deposit-taking institution. In 2011, the institution accepted eight new shareholders, including Ezra Suruma, Uganda's Minister of Finance from 2005 to 2009. UGAFODE received its Tier III MDI license from the Bank of Uganda in October 2011, and officially began MDI operations on 10 October 2011.

Question 3

Where is UGAFODE Microfinance headquartered?

Accepted Answer

UGAFODE Microfinance is headquartered in Kampala, Uganda. The head office is located at Plot 62, Silva Arcade Building, Bombo Road, Kampala. The institution strategically relocated its head office from the city center to the Wandegeya area on the outskirts of Kampala, an area with a high concentration of micro-businesses, to better serve its target customer base.

Contact details for the head office include a toll-free customer service line at 0800 223900 / 0800 396396 and email at customerservice@ugafode.co.ug.

Question 4

Where does UGAFODE Microfinance operate?

Accepted Answer

UGAFODE Microfinance operates throughout Uganda, with a network of 20 branches and 3 sales and customer service centres spread across multiple regions. The institution has a strong presence in both urban and rural areas, including branches in major cities such as Kampala, Jinja, Mbale, Mbarara, and Lira.

Key branch locations include multiple sites in Kampala (Bombo Road, Nakasero, Rubaga Road, Nansana), as well as branches in western Uganda (Mbarara, Ishaka, Ibanda, Rukungiri, Ntungamo, Rushere), central Uganda (Mpigi, Lyantonde, Sembabule), and northern Uganda (Lira). The institution also serves refugee settlements, including a branch at Nakivale Refugees settlement in Isingiro.

UGAFODE's sales and customer service centres are located in Kitagwenda, Kyangwali (Kikuube), Rubaale (Ntungamo), and Rubondo (Isingiro), extending financial services to remote and underserved areas.

Question 5

What services does UGAFODE Microfinance offer?

Accepted Answer

UGAFODE Microfinance provides a comprehensive range of financial services tailored to the needs of micro and small enterprises, agricultural producers, and individual savers. The institution's product offerings include:

Lending Services: Business loans for working capital and expansion (up to UGX 30 million), agricultural loans with flexible repayment terms aligned with harvest cycles, individual and group loans, education loans, and enterprise financing. Repayment modes are flexible, including weekly, bi-weekly, tri-annual, monthly, quarterly, yearly, and bullet payment options.

Savings Products: Various savings account options including fixed deposit accounts, target savings accounts, and general savings accounts with competitive interest rates. Accounts can be processed within 24 hours, and customers can save as individuals or groups.

Additional Services: Money transfer services, financial literacy training programs, life insurance products (with premiums ranging from 0.25-0.8%), and business advisory services. UGAFODE also provides customer-centric services including private banking and digital banking solutions.

Question 6

What makes UGAFODE Microfinance unique?

Accepted Answer

UGAFODE Microfinance distinguishes itself through its strong commitment to customer-centric financial inclusion and social impact. The institution underwent a significant transformation in 2010-2011 under the leadership of CEO Wilson Twamuhabwa, shifting from an aggressive loan recovery focus to prioritizing client well-being and responsive service delivery.

This customer focus earned UGAFODE recognition as one of the most trusted microfinance institutions in Uganda at the Uganda Responsible Investment Award Initiative (sponsored by the United Nations and East African Community). The institution's approach includes loan officers who visit business premises to understand client needs before recommending loan structures.

UGAFODE specifically targets economically active low-income clients, women entrepreneurs, and micro-businesses in both rural and urban areas. The institution accepts diverse forms of collateral including land titles, vehicle logbooks, business equipment, and household items, making credit accessible to those who lack traditional banking collateral. Additionally, UGAFODE operates in refugee settlements, demonstrating its commitment to financial inclusion for vulnerable populations.

Question 7

What type of financial institution is UGAFODE Microfinance?

Accepted Answer

UGAFODE Microfinance is a Microfinance Deposit-Taking Institution (MDI), specifically classified as a Tier III MDI under Uganda's regulatory framework. MDIs in Uganda are financial institutions licensed under the Microfinance Deposit-Taking Institutions Act, 2003, and are regulated and supervised by the Bank of Uganda.

As an MDI, UGAFODE is authorized to mobilize deposits from the public and provide credit facilities, primarily serving micro and small enterprises that typically fall outside the scope of commercial banks. The Tier III classification indicates that UGAFODE operates with specific capital requirements and regulatory standards appropriate for microfinance operations. This institutional type is specifically designed to promote financial inclusion and poverty reduction in both rural and urban areas of Uganda by providing accessible financial services to underserved market segments.

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About UGAFODE Microfinance in Uganda

UGAFODE Microf­inance