MBALE — A new partnership between PostBank Uganda and the International Fertilizer Development Centre (IFDC) aims to improve financial inclusion for thousands of rural farmers.
The initiative, launched in Mbale, eastern Uganda, will provide over 3,000 smallholder farmers with access to financial services through PostBank’s Wendi Mobile Wallet.
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Farmers will be able to save money securely, earn a 10% interest per annum on daily savings, and access credit facilities. The partnership seeks to address challenges faced by farmers, including high interest rates and limited banking infrastructure.
“The partnership will bridge the financial inclusion gap in rural areas,” said Brenda Mpoora, Head of Fintech Business at PostBank Uganda. Uganda’s agricultural sector employs 70% of the working population, but farmers face difficulties accessing financial services.
The IFDC’s BRIGHT project, which supports the partnership, identified key bottlenecks to financial inclusion. These include high interest rates ranging from 22% to 120% per annum, limited awareness of financial services, and lack of physical banking facilities.
Roger Gilbert Nyakahuma, IFDC BRIGHT project Financial Inclusion Manager, praised PostBank Uganda for its innovative approach. “Wendi Mobile Wallet is a game-changer in scaling access to financial services in areas without physical banking facilities,” he said.
Agriculture is a vital sector in Uganda, accounting for 26.42% of the country’s exports and contributing 1.65% to the GDP. The sector employs 70% of the working population and provides the first job for three-quarters of those aged between 15 and 24 years.
PostBank Uganda and IFDC aim to reach 40,000 farmers through this partnership, with 1,300 Village Saving and Loan Associations (VSLAs) across Elgon, Rwenzori, and Kigezi regions.
The move is seen as a crucial step towards fostering prosperity for Ugandans, particularly in rural areas, by providing innovative financial solutions tailored to their needs.
