Vision: “to have a society in which all children lead a full life”

UWESO:Uganda Women’s Effort to Save Orphans

Presented by:Blake BogeseFranky ChungPat McKeeganMaddy PickerJoanna Ronquillo April 23, 2008

Today’s Topics

• Overview of the situation in Uganda• Strategy based on sustainable improvements• UWESO's value chain relies on volunteers• Why is UWESO better?• UWESO's history of progress stands out

Root Causes of Poverty

• Violence in the North• Spread of HIV/AIDS• Reliance on subsistence farming• Lack of health and education• Corruption

Where is Uganda?

Violence in the North- the LRA

UWESO’s Strategy

Improve welfare of orphans in sustainable approach

UWESO Savings and Credit Scheme (USCS) – Financial Initiatives

1

1 x 5

5 x 10Savings

USCS

Individual (1)

Group (5)

Cluster (50)

Deposit

Repayment of 1,000 shillings per individual with 3% going to an emergency fund Individual Loans of $20-$500

and education on personal finances

UWESO NGO – Social Initiatives

• Education– Primary school– Vocational training

• Food Security• Health

Communication Strategy

• ABC Africa• Relationship with NGOs• Statistical reports

Suppliers

• Belgian Survival Fund (BSF) provided initial funding for UWESO Savings and Credit Scheme.

• UNICEF , USAID, and UK UWESO Trust regular donors.

• IFAD provides microfinance support and expertise.

UWESO

• 5 branch offices staffed by 40 full time employees

• Network of 10,000 women volunteers• UWESO Consulting brings in

additional revenue• Split off UWESO Savings and Credit

Scheme (USCS).

Clients• Over 10,000 loans distributed to USCS

clients.• Organization has helped hundreds of

thousands of orphans

UWESO’S Value Chain Enables Unique Approach

Political Connections Benefit UWESO

• First Lady Janet Museveni, started UWESO in 1986

• UWESO overseen by Ministry of Gender, Labour, and Social Development

Suppliers

• Belgian Survival Fund (BSF) provided initial funding for UWESO Savings and Credit Scheme.

• UNICEF , USAID, and UK UWESO Trust regular donors.

• IFAD provides microfinance support and expertise.

UWESO

• 5 branch offices staffed by 40 full time employees

• Network of 10,000 women volunteers• UWESO Consulting brings in

additional revenue• Split off UWESO Savings and Credit

Scheme (USCS).

Clients• Over 10,000 loans distributed to USCS

clients.• Organization has helped hundreds of

thousands of orphans.

UWESO’S Value Chain Enables Unique Approach

Comparing the Strategies of UWESO and the USCS

UWESO NGO USCS

General Methods:

Targets root causes of poverty .Seeks to permanently improve quality of life for women and orphans.

Want savings and loan facility self-sustainable after 2-3 years of involvement.Donations used as starter loans.

Key Stakeholder Relationships

Primary beneficiaries:

Programs benefit women and orphans.Payment not required.

Priced to break-even.97% of loan recipients women.

Capital sources: Governments.Large NGOs like USAID and UNICEF.

Belgian Survival Fund (BSF)

Work force: Teams up with other NGOs.Small core staff supported by network of volunteers.

IFAD advisors.Small full-time staff.Large group of knowledgeable volunteers.

Suppliers: In-kind donations Charge market interest rates on loans.Substantial base donation from BSF.

Governance Mission-constrainedLeadership overlaps with other NGOs and government.

IFAD oversight.Community level fiduciary responsibility.

Based on Gregory Dees’s Social Enterprise Spectrum

Suppliers

• Belgian Survival Fund (BSF) provided initial funding for UWESO Savings and Credit Scheme.

• UNICEF , USAID, and UK UWESO Trust regular donors.

• IFAD provides microfinance support and expertise.

UWESO

• 5 branch offices staffed by 40 full time employees

• Network of 10,000 women volunteers• UWESO Consulting brings in

additional revenue• Split off UWESO Savings and Credit

Scheme (USCS) in 2004.

Clients• Over 10,000 loans distributed to USCS

clients.• Organization has helped hundreds of

thousands of orphans.

UWESO’S Value Chain Enables Unique Approach

Why is UWESO better?

The Traditional Microfinance Industry

Government Donors

MFIs

Clients

Universities

Consultants

Investment Funds

Private Investors

Foundations

Commercial Banks

Source: Information provided by Unitus

Microfinance support

networks

Where does USCS fit into the Traditional Microfinance Industry?

Ugandan and Western Governments

Clients• 811 Village

Groups• 17,014 members

Consultants

Investment Funds• UK UWESO

TrustFoundations• BSF• USAID• UNICEF

Source: Information provided by us

Microfinance SupportIFAD

USCS

Relationship between the USCS and UWESO

UWESO Savings and

Credit Scheme (USCS)

Microcredit loans ($20-$500) andHealth, Financial, HIV, Information

Interest and loan repayments , savings accounts

Village Groups (5 people per

group)UWESO

Educational and Vocational Training Programs

Self-sustaining women become local volunteers

Consulting Revenues

Volunteers and Health, Financial, HIV, Information

Benedete NakayimaThe story of a 70 year old widow caring for 35 orphans

UWESO’s diverse programs alleviate poverty across all aspects

Tuition aid has let 2000 children receive primary education.

95% of adolescent orphans who finish vocational training are employed and are self-supporting.

$50 dollar loans have turned into $1000 businesses for many.

Clients Non Clients0

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6

8

10

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16

UWESO Development Clients Expe-rience Higher Average Wealth

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Av

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0102030405060708090

100

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UWESO Development Program Clients Benefit Have Greater Property Ownership

ClientNon Client

SWOT Analysis Shows Room for ImprovementSTRENGTHS

• Educational and Vocational Training Programs• Volunteer Network• Savings element of microfinance program• Direct relationship with the government

WEAKNESSES• Transparency of metrics and financial data• Lack of standardization in practices• High interest rates make programs unattractive to chronic poor

OPPORTUNTIES• Use USCS to generate more consulting revenues• Spread organization to other countries• Reach out to private donors to increase funding base• Capitalize on ceasefire to further initiatives in Northern Uganda

THREATS• Ties to Museveni may hurt UWESO if government shifts.• Countrywide shocks could crush USCS infrastructure.• Renewal of violence in Uganda could undermine efforts.

Conclusion