ASIGMA alongside consortium partners and various implementing participating financial institutions was part of the MSE Recovery Fund Q1 2025 Learn and Share event hosted by Financial Sector Deepening Uganda.
This platform facilitates knowledge sharing for the participating financial institutions and implementing partners on best practices, challenges and opportunities for the successful implementation and long-term sustainability of the MSE Recovery Fund program.
As ASIGMA, we are proud to be the Facility Manager of the program, ensuring that credit is extended to the target demographics through Tier III and Tier IV financial institutions.
The Micro and Small Enterprises (MSE) Recovery Fund is a 5-year initiative under the Mastercard Foundation Young Africa Works program.
Highlights from the Q1 2025 Learn and Share Workshop
In its fourth year of implementation, the MSE Recovery Fund continues to make significant strides in expanding financial access for underserved businesses. Key developments discussed include;
Capacity Building for Select Financial Institutions
ASIGMA is spearheading institutional strengthening efforts of four newly selected financial institutions, equipping them to access funding and better serve women and youth in Northern and Eastern Uganda.
Fund Rollovers & Additional Allocations
ASIGMA evaluated and recommended a total of 8 PFIs for fund rollover and additional funding. Four Participating Financial Institutions (PFIs) have been approved for fund rollover, while four others have received additional funding, demonstrating their effectiveness in reaching young entrepreneurs and driving positive economic impact.
Fostering Collaboration in Inclusive Finance
Through FSDU’s Community of Practice on Inclusive Finance, all Mastercard Foundation-supported programs in Uganda are engaging in knowledge-sharing workshops. These sessions create opportunities for PFIs to explore new markets, foster strategic partnerships, and extend financial services to previously underserved communities.
Empowering Young Women in Financial Inclusion: Key Takeaways
Progress on Young Women-Centric Design in PFI Operations
- Innovative Product Tailoring:
Participating Financial institutions (PFIs) are adapting loan products to meet the unique needs of young women. For example, there is a clear shift toward shorter, loan cycles (like as the popular four‐month group loan product by ASA Microfinance). These adjustments help overcome challenges related to typical collateral requirements while building credit histories for women. ASIGMA co-designed these loan products with the PFIs to ensure that they are a good fit for the target beneficiaries.
- Embracing Digitalisation:
Recognising that young women are more active on digital platforms, efforts are underway to digitise the client onboarding and loan repayment processes. This includes plans to roll out digital loan applications and mobile-based repayment systems as a means to extend reach and increase convenience.
Action Research Insights to Boost Young Ugandan Women’s Financial Access
- Scaling Young Women Participation:
Insights reveal a concerted effort to raise the share of young women beneficiaries from around 40% to a targeted 70%. This focus comes from detailed action research that identifies the current shortfall and outlines the imperative for increased inclusivity in lending.
These advancements underscore the Fund’s growing impact, with ASIGMA, as the Facility Manager, ensuring its efficient allocation and utilisation. By continuously overseeing and evaluating implementation, we remain committed to maximising the Fund’s reach, empowering financial institutions, and driving financial inclusive for youth and women entrepreneurs.
Performance Highlights – A Summary
Next Steps: What lies ahead
Alongside consortium partners, our goal is to facilitate access to finance for youth- and women-owned entrepreneurial ventures to transition them from recovery to resilience.
Overall, the MSE Recovery Fund aims to serve 70% young women. To expand access, ASIGMA is leading the affirmative action initiatives within the Fund in Northern and Eastern Uganda to mitigate the unfair distribution of the Fund’s impact in these regions, thus bridging the access to finance gap.
For more information about ASIGMA and the MSE Recovery Fund, please contact our Access To Finance team at investment@asigmagroup.com or +256705245438
