The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | When one member of the Anyawi Amami Business Group quietly left Ayilo 1 Refugee Settlement for Juba, South Sudan, she left behind more than memories. She left a loan balance of Shs 800,000 — and six anxious group members wondering whether years of hard work were about to crumble.
In Ayilo 1 Settlement in Pakele Subcounty, small businesses are more than income streams.
They pay school fees, buy food, and keep families afloat. The seven-member Anyawi Amami group — made up of both refugees and members of the host community — runs modest enterprises ranging from fresh food vending and produce trading to small grocery shops. Their businesses may be small, but their dreams are not.
Under the group lending model, members guarantee one another. So when the unpaid balance remained, the entire group was locked out of accessing a new loan. Even those who had never missed a payment suddenly found themselves stuck. Stock was running low. Plans to expand were put on hold. Anxiety crept into their biweekly meetings.
“We were worried,” recalls chairperson Assina Araba. “Without another loan, some of us would have struggled to keep our businesses going.”
Relief came during one of those regular meetings when their FINCA Uganda Relationship Officer introduced them to the Small Managed Group (SMG) Reserve Fund — a safety net designed for moments exactly like this. The idea was simple but powerful: the group would mobilize and pay at least half of the arrears, and FINCA would step in to clear the remaining balance.
It was not a handout. It was a partnership.
The women rallied together, raised their portion, and fulfilled their commitment. As promised, FINCA covered the rest. Just like that, the cloud hanging over the group began to lift. They qualified for a new loan cycle and returned to business with renewed determination.
For members like Andrisi Rukia, who has maintained a consistent repayment record, the intervention meant stability. For others still growing their enterprises, it meant a second chance to rebuild working capital and increase stock. For all seven members, it meant solidarity had paid off.
Disan Katabalwa, Deputy Project Manager at FINCA Uganda, explains that the SMG Reserve Fund exists because life in settlement communities can be unpredictable. “Unexpected challenges happen,” he says. “Our goal is to ensure they don’t permanently reverse the progress our clients have made.”
Branch Manager Ada Jackline says the group’s resilience stood out. “They did not give up. They took responsibility for their part and worked together. That discipline is what makes group lending succeed.”
Today, the stalls are open again. Tomatoes, onions and greens are neatly arranged. Grocery shelves are slowly filling. Customers move in and out, unaware that just weeks earlier, the businesses they rely on were at risk.
In communities like Ayilo 1, where incomes are fragile and opportunities limited, a setback can easily turn into collapse. But for the women of Anyawi Amami, a combination of unity, determination and a timely Shs 800,000 lifeline ensured their story did not end in default — but in resilience.
