1st, December 2023, Kampala, Uganda: Today, Pride Microfinance and the United Nations Capital Development Fund (UNCDF) have launched the ‘Tondeka Facility’ to enhance financial inclusion of vulnerable groups, specifically targeting Youths, Forcibly Displaced Persons (FDPs) and women entrepreneurs.

Translating to 'Don’t leave me behind' in English, Tondeka is a blended financing model aimed at increasing access to affordable finance for youth and urban FDPs as well as impart enterprise and product development skills through business skilling and incubation interventions.

The partnership is part of the Financing Durable Solutions Initiative for Forcibly Displaced Persons (FDS) funded by the Swiss Agency for Development and Cooperation (SDC) to foster equitable access to economic opportunities and social services for forcibly displaced persons (FDPs) in Uganda and the Development Initiative for Northen Uganda funded by the European Union with aim to localise the SDG’s among other vulnerable groups.

The Tondeka facility aims to offer comprehensive support, including capacity building and affordable finance options for forcibly displaced individuals, youth, and host communities. Initial efforts will concentrate on Gulu and Arua cities to promote inclusive development.

“We are extremely delighted to be joining hands with UNCDF and SDC to increase access to financing to marginalised segments of the economy. We aim to facilitate over 700 people with support from this partnership, create direct and indirect jobs for the forcibly displaced people and host communities and unlock potential of these underserved segments”, said Mr Sulaiman Katende, the Head of Treasury at Pride Microfinance Limited (MDI).

Despite the developments in Uganda’s financial sector over the past two decades, there is still a challenge of access to basic financial services by vulnerable groups. This was exacerbated by the adverse effects of Covid-19, with the micro, small and medium enterprises being disproportionately affected.

To support in the economic recovery and foster resilience of these groups, UNCDF and PML established this facility, which with support from SDC and European Union have initially capitalised through Pride to the tune of UGX 1.1Billion. The facility offers concessional micro loans, loan guarantees and business development services for the urban vulnerable groups to support improve their micro and small business.

Joel Mundua, the Project Manager and Deputy Head of Office at UNCDF in Uganda, emphasized the organization's commitment to fostering inclusive development: "UNCDF works to unlock financing opportunities that promote inclusivity. Collaborating with financial institutions like Pride Microfinance Limited is one of the ways to catalyze financing and stimulate economic growth, create employment opportunities, and harness the potential of forcibly displaced people and youth for economic development.

The Deputy Head of the Section Migration and Forced Displacement at SDC Headquarters, Ms Veronique Bourquin said; ‘The Swiss Agency for Development and Cooperation is pleased to partner with UNCDF and Prime Microfinance. This initiative will contribute to enhance the socio-economic inclusion of forcibly displaced people in Uganda and their host communities. We are committed to foster durable solutions to forced displacement and recognize the efforts by all stakeholders.

About Pride Microfinance:
Pride Microfinance Ltd (MDI) (Pride) is a Microfinance Deposit-taking Institution (MDI) regulated and supervised by Bank of Uganda (BoU) under the MDI Act, 2003 and MDI Regulations, 2004. From inception, Pride has grown to become the leading MDI in Uganda, providing innovative financial solutions to mainly the economically active Ugandans at the base of the pyramid. Pride serves its customers through 36 networked branches spread across the country and 8 contact offices.

About UNCDF:
The United Nations Capital Development Fund (UNCDF) is the United Nations' flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

About SDC:
The Swiss Agency for Cooperation and Development (SDC) is Switzerland’s international cooperation agency within the Federal Department of Foreign Affairs (FDFA). In operating with other federal offices concerned, SDC is responsible for the overall coordination of development activities and cooperation as well as for the humanitarian aid delivered by the Swiss Confederation.