KAMPALA, Uganda — ADRA Uganda, ADRA Denmark, Opportunity Bank Uganda and Danish cooperative bank FasterOikos have partnered to establish a blended financing facility that will provide refugee and host-community farmers in Kyaka II and Rwamwanja with access to affordable credit.
The initiative, developed under the From Savings to Sustainability (S2S) project, seeks to help Village Savings and Loan Federations (VSLFs) and Village Savings and Loan Associations (VSLAs) move beyond basic savings into larger agricultural and income-generating enterprises.
Officials from the four institutions are meeting for two days, from August 31 to September 1, 2026, at Opportunity Bank’s premises in Kamwokya to finalise the technical structure of the facility.
Refugee-hosting communities have developed strong savings discipline through village savings groups, but high commercial interest rates have continued to limit access to the capital needed to expand farms and small businesses.
The new model will combine community savings, concessional capital, institutional loans and risk-sharing guarantees to lower both the cost and risk of lending.
Benon Baabumba, Programs Director at ADRA Uganda, said the organisation’s long-standing relationship with ADRA Denmark has been critical in building financial literacy and resilience among refugee communities.
“This partnership is to de-risk the loans that we are planning to give to VSLFs and VSLAs which are managed by refugees. It is also to help refugees in Kyaka II and Rwamwanja access friendly loans,” Baabumba said.
He noted that Kyaka II hosts about 130,000 refugees, while Rwamwanja is home to more than 110,000, many of whom are engaged in farming or running small enterprises.
Jan Kirkensgaard, Chief Executive Officer of FasterOikos Cooperative Bank, expressed confidence that the collaboration would improve livelihoods on both sides of the partnership.
“We are pleased to have this opportunity to support the VSLAs and VSLFs so that they can get better lives. We think this will help farmers to develop and benefit both Denmark and Uganda,” Kirkensgaard said.
Karina Lynge, Senior Programme Coordinator and Peacebuilding Advisor at ADRA Denmark, said the visit was aimed at expanding sustainable economic opportunities for farmers in the two settlements.
“We are here to support together with Opportunity Bank and FasterOikos Cooperative Bank. We want to do more investments to better the lives of farmers in Rwamwanja and Kyaka II refugee settlements,” Lynge said.
Brian Collins Amanyire, Chief Finance Officer at Opportunity Bank Uganda, linked the partnership to the bank’s broader mission of reaching underserved communities.
“We have an ambition as Opportunity Bank to change lives and extend finances to impact many lives in the country, especially through women, youth and refugees, through sectors like agriculture, trade and education,” Amanyire said.
He added that achieving meaningful scale requires collaboration.
“This can’t be done alone. At Opportunity Bank, we realised that sometimes we have to hold this mantle with like-minded institutions. That is why we are pleased today to work with ADRA and FasterOikos Bank.
“We care about the customer and the impact we cause to our clients. We care about the partnership we are having now for lasting impact in the country.”
The partners plan to design loan products with repayment terms and pricing that reflect the realities of smallholder farmers. They will also explore ways to manage foreign-exchange risks so that funds can be disbursed in Uganda shillings at stable and affordable rates.
By linking community savings with concessional and commercial capital, the facility aims to help refugee and host-community farmers transition from subsistence activities to more profitable and sustainable agribusinesses.
