On the road to RUCREF

Monday March 1
Kampala

Finally! Today, we're out and about meeting projects and their beneficiaries.

First up, we set out in three vans to the Oikocredit Uganda offices. The group met Judy, the regional manager for East Africa, Carol (Kenya's country manager), as well as Edith (Uganda's country manager) and the Uganda staff, Peter, Jessica and Esther.

The study tour participants fired every possible question at the team, which they answered with their impressive field knowledge. Unfortunately, we were out of time to discuss the big issues (interest rates and overindebtedness in microfinance are always conversation-starters) and each group had to run to their respective project partner visits.

We visited Rucref, a microfinance institution that's bounced back from some serious situations. Rucref originally grew from a credit department of an NGO, VEDCO. When the program became successful, Rucref was registered as a separate MFI. But poor management meant the MFI wasn't succeeding, and in 2007, the entire management team and board was replaced.

Now, with Kasasa Moses (right) at the helm, the future seems bright. He said although it was difficult to 're-brand' the MFI in the eyes of the community, they've done the job.
"The Rucref we have today is precisely because of the relationship we have with the people," he said.
The aim now is to become accredited to operate as a bank (and hence be permitted to take savings, for example), he said.
"It's exciting. Being challenged to grow into a bank gives me the encouragement to come to this desk everyday."

Today, Rucref has a 50/50 split between rural and urban clients, throughout four branches. After lunch with Moses, we headed to meet one of Rucref's 'urban' clients - although it was quite a drive and felt more like a small village .

Meeting Gladys Katwe (right) made for a very entertaining afternoon. I'm not sure it can be completely attributed to her three microloans, but she sure knows how to laugh! Gladys also seemed to enjoy handing me a three kilogram live chicken to hold while we had a chat in the chook-shed. For some reason she could tell I wasn't a farm-girl.

Apart from the chickens, which she sells for meat, Gladys sells second-hand shoes and clothes to stores. She was originally a member of an all-women's lending group. She used her part of the money for the chickens and her business of having old clothes sent from England (where her husband works for an Indian driving company). From there, Gladys got an individual loan of two million UGX to support the businesses and a second and third loan of three million to further expand. Gladys has a small farm nearby where she keeps six pigs, has two workers, and hopes to use her current loan to construct an area to bring in laying-chickens.
"I want to be a good farm manager, with cows and 500 chickens," she said.

After a million questions and photos we headed back to the hotel, and briefly celebrated the success of our first project visit with a round of stroopwaffels. Tonight, we'll have to pack for the next two days in the rural areas. I'm heading to Masaka, in Uganda's south. I'm promised it's a two hour drive, unless the traffic strikes....