Community savings and credit groups have long played a vital role in Uganda’s socio-economic development, particularly in rural areas. However, these groups face several challenges that hinder their growth, including infrastructure limitations, restricted access to financial services, and high interest rates, according to business experts.
In a recent symposium at Gudie Leisure Farm, experts underscored the importance of addressing additional obstacles such as the lack of financial literacy, inadequate credit histories, and the underutilization of online learning resources among group members. These factors are crucial for the broader acceptance and success of savings and credit groups in Uganda.
The symposium, which gathered representatives from government institutions, development partners, and NGOs supporting youth-owned associations, aimed to expose participants to development opportunities, foster collaboration, and equip young people with technical and business skills. It also highlighted the challenge of youth-targeted scams perpetrated by fraudsters, false pastors, and deceptive programs.
Professor Gudula Naiga, the founder of Gudie Leisure Farm, emphasized the need for comprehensive groundwork to build profitable and competitive financial services.
“Given that our youth have started saving, engagements like this allow us to connect with potential partners who can provide additional capital and help reduce the interest rates on loans for our youth,” she said.
The 2024 census revealed that Uganda’s population stands at 45.9 million, with 50 percent aged 0-17 years and 22 percent aged 18-30 years, underscoring the urgent need to address the economic future of the nation.
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