How can micro-finance contribute to restoring dignity and transformation of lives in urban slums

“sharing experiences from Uganda”

By

Mr. Lutwama Muhammed

Operations Manager

ACTogether, Uganda

+256752666038/+256703634249

lutwama09@yahoo.co.uk skype: lutwama_muhammed

Date: 16th /November /2011

Key facts about Uganda

While Uganda still has a relatively low level of urbanization, it has a high rate of urban growth estimated at 5.1% per annum. Kampala the capital city is by far the dominant city with a population

of 3 million, there has been a clear growth of secondary towns with 50% of the

urban population now living in the 14 designated municipalities. 60% of these urban residents live in slums It is projected that by the year 2035 Uganda’s population will have

grown to 68.4 million of which 30% will be in urban areas. the country’s economic growth patterns averaging 6.7% over the last

decade supports the view that urbanization and agglomeration of people and higher order economic activity will occur.

The situation has led to settlements of despair; There is official recognition that living conditions in slum areas are poor and characterised by high levels of housing congestion, insecure land tenure, occupation of unsafe swampy areas, regular flooding during rainy season, poor drainage and sanitation conditions, inadequate garbage and refuse collection, very limited road accessibility, and inadequate access to health care facilities.

Kalerwe slum in Kampala

Need for well-conceived and long term-planned slum upgrading initiatives

APPROACHES TO TRANSFORMING LIVES THAT TRANSLATE INTO SECURE AND HABITABLE AREAS

1. Grassroots mobilisation & governance activities

2. Pro-poor research & advocacy

3. Secure land and access to housing by the urban poor

4. Urban poor community-managed funds

5. Community exchanges and networks: a formidable learning and mobilisation tool

GRASSROOTS MOBILISATION & GOVERNANCE ACTIVITIES

Community Savings & Credit Schemes

This encourages and strengthens the capacities of the urban poor communities to mobilize and organize themselves into city federations.

Most savings schemes naturally evolve into community-based savings for shelter improvements, as housing and security of tenure remain the main critical issues faced by the slum dwellers.

Progress: 362 savings schemes, 38000 families participating, covering six cities, over USD300,000 saved

Daily savings “Our savings, our strength”

PRO-POOR RESEARCH & ADVOCACY

Advocating for the rights and interests of the urban poor by building their capacity to collect and use critical information, and their ability to engage in negotiations with their local and national government for secure tenure and improved living conditions for the slum dwellers.

Information is power! Count me in • The creation of space for the urban poor community

groups to influence and participate in development processes is critical and the communities are engaged in;

1. Community-Led Enumeration

2. Settlement profiling

3. Settlement Mapping

4. Building partnerships with local and national government authorities Partnerships

Anti-eviction campaigns

Enumeration and Mapping by slum dwellers

Slum dwellers gathering information concerning income, expenditure, bio-data, land ownership, size and no. of structures and family sizes

Where is my house on this map??

PROMOTING SECURE LAND AND ACCESS TO HOUSING BY THE URBAN POOR Security of tenure for the urban poor represents an

important battlefield for slum dwellers. It is the guarantee against forced evictions

its an essential safety net for urban poor families against when market forces gradually raise the cost of land and rented accommodation

Communities are involved in;

Housing model exhibitions, Incremental slum upgrading initiatives, Affordability and House Design processes that guarantee ownership

Community-driven Construction Process

Demonstrating alternative solutions to low-cost housing and infrastructure development

Pilot projects are a means for the community to try-out and demonstrate innovative approaches to low-cost housing and slum upgrading that has potential to be more pro-poor, effective and sustainable

•9 low cost housing units have been completed, 30 units under construction •7.6 acres of land were availed by the municipality to the slum dwellers in Jinja •503 families have acquired security of tenure in Kampala and Jinja

Key issues to consider in the bid for MFIs to promote secure tenure and liveable environments

• While the conventional delivery systems generally exclude the urban poor from existing land and financial markets, there has been much innovation in finance to support housing infrastructure and community development for urban poor groups over the last 15 years. They show how far external funding can go if it can support local processes driven by local organisations that make maximum use of such funding.

• Banking institutions have failed to harness the social capital to address the structural challenges that are the real causes of poverty. Financial services that effectively reach low-income groups and help them leverage finances need to be developed with these groups as they are best able to assess their repayment capacities and develop effective systems. Financial institutions are generally reluctant to make substantial loans to the poor, or even to open a bank account for them.

• MFIs should offer relatively low interest rates and improve on flexibility on the repayment term.

• communities should be supported to develop systems that can channel funding to support local initiatives, while relinquishing more financial control and decision-making powers to local organisations formed by, and accountable to, the urban poor.

ACTogether Who we are ACTogether is the national support NGO charged with providing technical and financial assistance to the Ugandan Slum Dwellers Federation. Uganda Slum dwellers Federation: The Federation is a member of the Shack/Slum Dwellers International (SDI) network and currently boasts approximately 38,000 members in six urban centres across the country. The Slum Dwellers Federation is a social movement of the urban poor, built on the that joint voice and action from grassroots level can play a significant role in driving change towards improved living and economic conditions for the slum dwellers of Uganda

Vision and Mission Vision Inclusive cities where the urban poor utilize opportunities to transform their communities

Mission To build the capacity of organized urban poor to improve their livelihoods and increase their access to land, housing and basic services

Where we work

104 schemes

27 schemes

68 schemes

89 schemes

44 schemes

30 schem

es

Thank you