Impact: How dairy farming sparked sustainable financial inclusion
Shakira borrowed money to invest in a shop business in the community.
At the base of Mt. Elgon’s Wanale hill in Mbale district, Uganda, a rural community is tackling financial inclusion and household income challenges. The community of Madenge partnered with Spark in 2015 and graduated in 2018.
In December 2021, three years after their completion of the FCAP, the community invited Spark back to see the change they’d achieved. Here’s a look at the community’s journey.
Dairy farming projecT
After partnering with Spark in 2015, a Spark facilitator supported the community through the FCAP. The 40 community members chose to pursue dairy farming as means for raising incomes across the village.
The plan they developed had three core revenue streams.
Buy a few cows and sell their milk, sharing the profits.
Breed the cows and distribute the calves equitably among the community members.
Use the manure as fertilizer for their gardens to improve yields.
Spark Microgrants provided a grant of $2,700 to jumpstart the dairy farming project. The members used the grant to initially purchase six cows.
Three years later, the community has 22 cows. They have earned thousands from selling the milk. Their yields of banana, coffee, cabbage, onions, and beans have significantly improved thanks to the fertilizer. The extra produce is often sold to for extra income and to contribute to savings groups.
“The spark that was given to Madenge community has produced a fire of economic progress.” – Kalifali, Community Chairperson.
Tackling financial inclusioN
In 2016, 35 members of the community came together to start a village savings and loan association (VSLA) to enable community members to easily access affordable loans.
By December 2021, membership in the association had grown to 82 members.
The members of the association are required to save a minimum of $0.57 each week. Over the last year, they collectively saved an incredible $6,950. With these funds, they financed low-interest loans to community members and nearby villages, improving community ties and household assets.
Community members also accessed financial literacy education as part of the VSLA training. Applying this knowledge outside the savings group, one Madenge resident used her loan to open a shop in the community.
“A strong community needs strong leadership. That is why our community still meets even after finishing [the FCAP] process. We are happy that we are building social cohesion.”