No Collateral, Big Dreams: Equity Bank loans fuel youth enterprise in rural Uganda

June 28, 2025 in Business, Companies, Financial Services, Trade & Industry by Editor

Across Uganda’s diverse communities, young entrepreneurs are redefining their futures through the power of financial literacy and access to capital. Thanks to Equity Bank Uganda’s implementation of the Young Africa Works strategy, a Mastercard Foundation initiative, rural youth are gaining the tools to turn modest ventures into thriving businesses. The initiative aims to empower 4.3 million young Ugandans by 2030, especially women, refugees, and people with disabilities.

In Chitwe, Fort Portal, Nakivale, Rhino Camp, and Isingiro, the stories are strikingly similar: youth once burdened by financial mismanagement now running profitable businesses. One woman from Chitwe Youth Farmers Group recalls running a hairdressing business without any bookkeeping. “I didn’t track sales or expenses and would use products without recording it. I made no profit,” she admitted. A Fort Portal farmer echoed the sentiment, saying, “I didn’t know the value of money, so I mishandled it.”

The tide turned with Equity Bank’s financial literacy training. Between 2021 and 2023, youth across Uganda attended workshops on budgeting, inventory management, and separating personal from business finances. These newfound skills changed everything. “I learnt to record income, track inventory, and separate funds,” the Chitwe entrepreneur said. In Fort Portal, the farmer began investing wisely and tracking returns. “Without training, I couldn’t have managed a loan,” he stated.

In Nakivale, the No Empire Women Empowerment Association overcame internal conflicts through group budgeting and record-keeping. “We now keep proper records and set financial goals,” a leader shared. These skills not only stabilised existing businesses but inspired new ventures in digital literacy, tailoring, basket weaving, and mushroom cultivation.

Backed by their training, youth accessed loans through Equity Bank’s group lending model, which does not require collateral. Loan amounts ranging from UGX 2 million to UGX 5 million sparked transformative change. The Fort Portal farmer invested in agriculture, mobile money, and electronics, even funding his university education. In Chitwe, a single mother expanded her salon and launched poultry and goat projects. “I put my kids in better schools and improved our lifestyle,” she noted.

Misha Dan of Detroit Farmers Group in Isingiro used a UGX 600,000 loan to revive her hair salon and invest in poultry. “Before training, I blamed witchcraft,” she laughed. Now she mentors other women and leads six subgroups. In Rhino Camp, a youth group trained 56 members—43 of them women—in bakery and catering, using loans to support small start-ups.

The ripple effect has been substantial. In Fort Portal, new savings groups formed, inspired by success. In Nakivale, a soap-making factory was born. In Rhino Camp, youth employment has reduced idleness and social issues. These community-wide changes are rooted in Equity Bank’s consistent support and the Mastercard Foundation’s inclusive development vision.

Despite these gains, youth leaders are asking for more. They seek refresher trainings to sustain discipline and help onboard new members. They also advocate for higher loan limits, citing the UGX 5 million cap as insufficient for groups of up to 30 members with diverse business goals.

The transformation driven by financial literacy and access to capital is tangible. “I’m self-employed and proud,” the Fort Portal farmer declared. These youth are no longer passive beneficiaries; they are mentors, employers, and community builders.

As Equity Bank Uganda and the Mastercard Foundation scale up efforts under the Young Africa Works strategy, the prospects are palpable: With sustained investment and responsive support, Uganda’s youth will continue to unlock a future of dignity, self-reliance, and shared prosperity.