The FAHU Foundation (FAHU) is partnering with ADRA Denmark and ADRA Uganda on a one-year Phase 1 initiative to evolve the Village Savings and Loan Federation (VSLF) model established under the REAL project (2024–2026) in Kyaka II and Rwamwanja refugee settlements1, Uganda. Building on demonstrated results — seven VSLFs managing a total loan portfolio of UGX 108 million, federating 70 Village Savings and Loan Associations (VSLAs) with approximately 2,400 members — S2S Phase 1 will take the model to its next generation by co-creating and testing institutional loan packages and blended financing mechanisms with Opportunity Bank Uganda Limited (OBUL).

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To develop and test VSLF-based institutional loan packages and blended financing models with Opportunity Bank Uganda, creating structured pathways for smallholders to access affordable growth capital.

• To strengthen the governance, digital financial record-keeping, and loan management capacity of selected VSLFs, building their creditworthiness for engagement with formal financial institutions.

• To expand farmer enterprises and increase profitability among refugee and host-community smallholders through business planning, market linkage, and climate-smart agriculture support (Akeyo model and demonstration gardens).

• To generate, document, and disseminate evidence and learning on VSLF-based financing models to inform future scale-up within ADRA Denmark's broader financial inclusion and resilience portfolio.

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The project will work with four selected VSLFs, chosen through a readiness assessment covering governance maturity, repayment discipline, digital record-keeping capacity, and business potential. Through a combination of blended finance design, VSLF governance strengthening, business planning, climate-smart agriculture support, and market linkages, S2S Phase 1 aims to establish feasibility and generate the evidence base needed to create structured and replicable financing pathways for smallholder farmers — particularly refugees, women, and youth.

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