1.
PROJECT TITLE: The Royal Micro-Finance Institution (RMFI)
2.
PROJECT CODE: PS.01.01
3.
BKDS Sector:
Production Support Sector Programmes
4.
BKDS PROGRAMME:
The Royal Micro-Finance
Programme
5.
IMPLEMENTING ORGANISATION: BUCADEF
6.
BACKGROUND:
Development normally
requires capital investment which capital is usually derived from savings. The saving culture for the people of Buganda
is still very poor and to some extent, some do not save at all. Likewise the demand for micro credit
facilities in rural areas is quite big whereas organisations offering micro
credit services in Buganda are not so many.
It is hoped therefore that the Royal Micro Finance Institution will do
quite well to help alleviate the above outlined problems.
7.
OBJECTIVES
The
Royal Micro-Finance Institution (RMFI) has the following objectives:
(a)
To train people in
investment and business management suitable for micro financing.
(b)
To instill the spirit
of saving and the need of working together among the people especially those
engaged in micro financed business.
(c)
To help establish
suitable and competent NGO’s and CBOs specialised in Micro-financing.
(d)
To mobilise funds and
loan them out to communities through micro credit NGO’s and CBOs that are on
the ground.
(e)
To extend credit so
that a number of small-scale enterprises can be boosted to larger scale
businesses.
(f)
To offer guidance
and-or advice regarding business to clients.
Communities will be
empowered to solve their own problems as a result of the spirit of
togetherness.
Communities will have
capacity to set-up and manage small-scale to medium enterprises.
Well co-ordinated Micro
Credit Schemes in the region.
A sizeable number of
NGOs and CBOs actively involved in credit
This will comprise of a larger proportion of women
and youth based in semi-urban and rural parts of Buganda. The secondary
beneficiaries will be all family members of the above direct
beneficiaries.
|
Activities |
Start
time |
Responsibility |
Collaborators |
Staff recruitment
|
First month from date of
start |
Board Of Directors
|
Chief Executive Officer
|
|
Staff
training Identify NGO’s/CBOs which
can disburse these funds |
The second month |
Micro-Finance Competence
Centre |
BUCADEF
|
|
Sensitisation of clients |
From the third month –on
going |
Royal Micro Finance |
Community based
associations and local Council Leadership |
|
Selecting NGO/CBOs |
From the fourth and fifth
month –on going |
NGO/CBOs |
Micro-Finance Competence
Centre |
|
Registration of clients |
From the sixth month – on
going |
NGO/CBOs |
Community based associations |
|
Loan Disbursement |
From the sixth and seventh
month – on going |
BUCADEF/NGO and CBOs |
Community based
associations and local Council Leadership |
|
Recovery of funds from
organs which disbursed on behalf of BUCADEF. |
From the second year |
BUCADEF |
Community based
association Leadership |
8.
MILESTONES:
|
Indicator |
Time |
Responsibility |
|
Number of NGO registered |
From the sixth month-on
going |
BUCADEF and the community
based associations Leadership |
|
Number of active clients |
From the sixth month-on
going |
BUCADEF |
|
Loan amount disbursed |
From the seventh month-on
going |
BUCADEF |
|
Interest amount
accumulated |
From every quarter |
BUCADEF |
|
Rate of repayment |
From every quarter |
BUCADEF |
|
Rate of Loan recovery |
From every quarter |
BUCADEF |
|
Drop-out rate of clients |
From every quarter |
BUCADEF |
|
Audited accounts |
Annually |
External auditors |
|
ITEM |
AMOUNT (US$) |
|
Loan capital |
25,555,600 |
|
Capital grant |
1,162,250 |
|
Total |
25,717,850 |
N.B
20% of the loan capital is
operational.
10% contingencies
At
the end of the five years, we expect an accumulation of interest of $9,200,000.
This reduced by the expenditure of salary and operations as above gives an
approximate Net- Profit of $1,533,400
by the end of five years.
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