In rural Uganda, extended families have long been viewed as a source of social security and prosperity. However, during the past decade, diseases like AIDS have ravaged families, often taking the lives of the main income-earners and sources of support.
In response, community-based groups and trade associations have emerged to complement the extended family network. In these groups, individuals can meet, share ideas and resources, and work for a common goal.
Trade Association Formation
URDT has been instrumental in the Kibaale District in promoting awareness of the benefits of trade associations and helping people to join or form associations.
Benefits gained from association membership are twofold:
Increased Production – Group members benefit from collective labor, incentives for farming innovations like improved seeds, modern farming methods and ease of marketing of the produce.
Access to Capital – Group members have greater access to financial support through credit programmes or revolving fund projects.
URDT provides technical assistance to groups wishing to form associations or cooperative businesses. By 2002, over 60 groups with an average of 15 members each were functional. Examples include:
- Kagadi Women Finance Services Limited
- Senior Citizens Cooperative Farm
- Kyengaju Women's Cooperative Restaurant
- Maize Mill for Women
- Kibaale Fish Farmers Association
- Nalweyo Nursery
- Buyaga Beekeepers Association
Six women's groups comprising 365 female members joined to create a savings institution called the Kagadi Women Finance Services Limited. It is now a vibrant microfinance institution with over 1,800 savers, a loan portfolio of 200 million Uganda Shillings and 1,000 loans outstanding. Seventy percent of its clients are women.