Poverty remains a significant challenge in Uganda. PHOTO | FILE
Pressure to double down on the fight against poverty is increasingly becoming tougher after a recent finding revealed a grim picture despite attempts by the government to boost household incomes over the years.
According to the World Bank’s latest poverty rate, four of 10 Ugandans live on approximately $2.15 (Shs7,900) a per day. Although this is a slight improvement from less than $1 (Shs3,700) per day recorded five years ago, there has been an increase of Uganda’s population that lives below the poverty line. The number in question rose from 30 percent to 40 percent, with households in Kampala slums bearing the most brunt.
The World Bank’s recent poverty report shows that 42.12 percent of Ugandans live below the international poverty line, and at least 50 percent are at risk of falling back into extreme poverty.
Another report by the Alliance for Finance Monitoring, a non-governmental organisation, highlighted that a 2019 survey by the Ugandan government revealed 68.9 percent of Ugandans were outside the money economy. This, it was further revealed, lived hand-to mouth despite the Operation Wealth Creation programme being in place for more than five years.
The report also noted that many poverty alleviation programmes are often introduced just before or during election periods, turning them into political tools rather than effective poverty-fighting initiatives.
Challenges
Even with various poverty alleviation programmes, including Emyooga and the Parish Development Model (PDM), there has been mixed results in terms of boosting household income. One of the key challenges facing these programmes is the impact of institutionalised corruption, which often undermines their effectiveness.
Reports from the Inspectorate of Government reveal that approximately Shs1 million is lost to corruption every hour. Additionally, the PDM, which has struggled with fraud and poor fund management, has encountered numerous challenges, hindering its ability to effectively reduce poverty.
Ms Angela Nakafeero, a commissioner in the Gender, Labour and Social Development ministry, cited the shocking findings of the Uganda Bureau of Statistics (Ubos) Multi-Dimensional Poverty report, which revealed that 42 percent of Ugandans, especially women, are still facing severe deprivation. These individuals lack access to essential services like proper nutrition, healthcare, and education.
“I encourage, especially women; when you earn an income or venture into gainful projects, avoid rushing for loans. If your current means are not enough, it’s a wake-up call to invest in income-generating opportunities,” she offered.
For salary earners, Ms Nakafeero stressed the importance of diversifying income sources, warning that reliance on a single salary can be risky, especially given the potential for job loss due to restructuring. She recommended having an additional income stream to ensure financial stability.
Interventions
Mr Tadeo Muriuki, the chief government relations officer at Village Enterprise, Kenya, discussed the lessons learned from past poverty alleviation efforts in Africa. He pointed out that many of these initiatives fostered dependency instead of self-sufficiency because recipients were not provided with the tools and opportunities to become financially independent.
According to him, banks and microfinance programmes, for example, often led to debt cycles due to a lack of support and financial literacy. Mr Muriuki believes the Poverty Graduation Model, if scaled up, could significantly reduce poverty in Uganda, particularly due to the country’s agricultural focus. “We could see a tremendous reduction in poverty, especially if this is scaled up and implemented broadly because Uganda is a very agricultural country.”
Solution
Having trained 158,137 entrepreneurs, helped establish 47,195 businesses, and formed 3,158 business savings groups, Village Enterprise’s graduation model has so far transformed 952,218 lives from abject poverty to being able to earn a living.
A survey carried out from some of those who graduated from the poverty graduation model revealed that their household savings grew by 993 percent, up from 300 percent when they exited the programme.
Their household consumption and expenditure per capita rose by 83 percent, up from 22 percent. Moreover, 70 percent of the participants continue running their businesses even after completing the programme.
“When we talk about graduation, we mean this individual has gone through a sequence of activities that are centred around their capacity to start different businesses and connecting them to the market or the offtakers and buyers,” Mr John Ilima, the Country Director, Village Enterprise, Uganda, said of the Poverty Graduation Model.
Village Enterprise is partnering with Mukwano Industries Ltd to promote sunflower farming within the refugee settlements in West Nile and Rhino Camp.
“In the Village Enterprise graduation model, three entrepreneurs join forces to start a business together, and they are given a grant of $200 (Shs740,000), which is fully invested in the business they agree upon,” Mr Ilima revealed.
This approach aims to provide sustainable business opportunities that allow entrepreneurs to create better futures for themselves. Mr Ilima also highlighted the model’s success in districts like Omoro, where it has been adapted to assist people with disabilities. However, he stressed the need for government involvement to scale up the programme, noting: “We would like to work with the government because we believe it has the infrastructure and resources to scale this up. That’s why we are keen on securing this partnership, as we have seen similar successes in the governments of Rwanda and Kenya,” he said.
The districts of focus have mainly been from northern Uganda. Some of them include Agago, Alebtong, Amuria, Kamwenge, Kapelabyong, Katakwi, Kyenjojo, Madi Okollo, Terego, and Yumbe, as well as Dokolo, Hoima, Kiryandongo, and Nwoya. However, there is also a growing need for intervention in regions like Busoga, where poverty levels are steadily increasing.
