Uganda, Africa

UGA10 - Faith Harvest Loans

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Key Partnership Information:

• Partnership Ref.: UGA10

• Commenced: 25/03/2023

• Funding Status: No Current Donor

• Partnership Type: Micro-enterprise / Micro-loans, Community / Agriculture Development, Evangelism / Church Planting

• Funding Size: $3,000 - $7,999

• Annual Budget: US$ 4,840

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Current Partnership Impact:

• 27 families are being assisted

• 27 families are accessing microloans

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Other Partnership Information:

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Partnership Overview

The Faith Harvest Network is based in the east of Uganda, in the geographic region of the Namuture mountains and lakeside communities. A large percentage of these people are vulnerable and many of the people in these churches are poor with few resources or capital to allow them to get out of poverty.  

Faith Harvest Network currently have 15 churches in this area. In several of the churches they have begun a small loan programme with approximately 120 people. They want to improve the social, economic well-being, and livelihoods initially for the people of Faith Harvest churches but also the most vulnerable people who live in the wider geographic regions of Namutere mountains and lakeside communities. They would love to see these people fully engaged in the decision-making processes that determine the future of the mountain communities and lakeside, particularly in light of global change and globalization.

These areas are afflicted by four major issues: 

1) Many children have never been sent to school because of cultural norms (if finances are an issue, then boys will be sent to school rather than girls)

2) These are war ravaged areas with longstanding civil wars and tribal differences

3)  Sickness and disease seriously affect family bread winners. Covid has made this worse on top of the traditional illnesses such as malaria, HIV/Aids and other preventable diseases.

4) There are few employment opportunities and political changes make it hard to get a job because one loses relationship with people in high places. Along with this, females are not able to get jobs because of sexual harassment/refusal to respond to sexual abuse from the employers/bosses. 

This means that the vast majority of the people are powerless and have little or no influence in their communities.  

History of Partnership

The BHW New Partnership Facilitator has known the leaders of Faith Harvest Network for more than 20 years due to their previous involvement in another of our partnerships (UGA02). From 2001-2007 we visited Peter several times, then for a period of about 10 years we had little contact. We began communicating again in 2016 and visited in 2018. Since then, BHW's Uganda Partnership Facilitator has also visited him a couple of times. 

In October 2022, Peter, Violet and two of their other leaders came to a conference BHW held in Jinja and we sat for some time and talked around the possibility of BHW partnering with them in their ministry in this part of Uganda. Following further correspondence, in March 2023 BHW commenced providing financial support for this loan programme.  

Beneficiaries

The beneficiaries are members of the network of Faith Harvest Churches, predominantly women or young people who have a small business that could be developed with a small loan. These people are poor and in most cases are widows and vulnerable children.

As the programme develops it will be extended to others who lack material support from outside the church and who are recommended by church members. 

What We Like About The Partnership

They have thought about this long and hard and have experience in the loan sector. 

There are several good components to the structure of this project that mitigate the risk. Each church has its own loan team to oversee the operation of each group. 

We have known them for a long time, and they have a well-established network. 

They have shown initiative and begun without external assistance.  

 

Key People

Leadership Profile

Peter Erima was born of Catholic parents in a polygamous family of four wives. He became a Christian after the overthrow of President Idi Amin in 1979. His parents excommunicated him from the family for violating the Catholic faith. He then went to Glad Tidings Bible College affiliated with Full Gospel Missions to Uganda from 1984-1986. In 2002 he went to Joshua Leadership Missions College Arusha (Cert. In Missions and Leadership) and then achieved a Diploma in Practical Theology in 2014. 

Violet Kakai was born in 1979 and studied to become a grade 3 school teacher from 1997-1999. She then went on to study Business Administration with Uganda College of Commerce in 2011, a Diploma in Business Administration with Makerere University Business School in 2012-2014 and a Bachelor of Business Administration at MUBS in 2016-2019.

Both of them are well qualified to lead this project. 

Peter and Violet have been married for many years and finally had a church marriage in 2022. They have one child, Brenda Hasana. She has a diploma in Records & Information Technology from UCC. They also have several disadvantaged children and people they care for. 

Violet has been a teacher since 2002 and is also involved with women and children's ministry. She coordinates the women's work where women are encouraged to run small businesses for a self-sustainable lifestyle. Men are also involved.  She also serves with Peter as the founder of FHCOFH.

Peter Erima is the General Overseer of Faith Harvest Churches of Fresh Hope.

 

Vision And Annual Strategy

Vision 

The vision of Faith Harvest is to enhance the flourishing of the people in its network. This will see the people and families becoming economically self-sustaining and there will also be benefit into the local churches. 

Their motto is "Start Small and Grow Big"

Strategy

As at the start of 2023, the network has planted 15 churches around the areas identified above. In those churches are many women and young people who are struggling to survive and make a decent life for themselves. There are several things they want to do to address this, but to begin with they want to establish small scale loan programmes for their people. 

There are two major types of beneficiaries, those with existing small businesses who want to boost their business, and those who want to start up a small business. To qualify there are several criteria which include:
- Application and presentation of business proposal
- Must have attended the Faith Harvest business training
- The rest of their family must be in agreement with the proposal
- Must be a resident of the participating cluster
- Must be above the age of 19 years
- Must have a guarantor/s
- Must have saved with the cluster operating in the community
- Must have a national ID card
- Preferably should have a letter of recommendation from the office of Local Council 1

Three key operating features:
- Loans will be for a maximum period of 12 months
- There will be a management fee of 1%/month
- Payouts will be made monthly
- Repayments will be either weekly or bi-weekly (repayment for those doing agriculture will be negotiated)

Annual Budget

The total budget for this programme is US$12,000 spread over three years, by which stage it is anticipated there will be a large enough capital fund for it to be self-sustaining.

Year one (2023) - initial boost of US$4,000
Year two (2024) - another boost of US$4,000
Year three (2025) - final boost of US$4,000 and then an assessment of progress and outcomes