A seven-member business group in Ayilo 1 Refugee Settlement has avoided a

potential financial collapse thanks to timely intervention from FINCA Uganda’s

Small Managed Group (SMG) Reserve Fund. The Anyawi Amami Business

Group, made up of members from both the refugee and host communities in

Pakele Subcounty, faced a repayment challenge after one member unexpectedly

relocated to Juba, South Sudan, leaving an outstanding loan balance of Shs800,000.

Because the group was in arrears, they were not eligible for another loan

until the balance was cleared. This affected not only the members who defaulted

but also the entire group, including well-performing clients who needed capital to

sustain their businesses.

Such scenarios are common in group lending, and this is where FINCA’s SMG

Reserve Fund plays a crucial role. The fund is designed to support groups like

Anyawi by helping them maintain solidarity and ownership while recovering from

setbacks so they can continue accessing credit.

“FINCA’s support was a lifesaver for us. We were about to lose our chance to

access more loans, but during one of our biweekly meetings, our Relationship

Officer told us that FINCA has an initiative that supports groups with a member

who has been in arrears for over 60 days. He encouraged us to clear at least half of

the arrears, and FINCA covered the remaining half, enabling us to borrow again,”

said Assina, Chairperson of the Anyawi Group.

The Anyawi Amami Business Group operates small enterprises including fresh

food vending, crop produce trading, and grocery businesses. Chairperson Assina

Araba and member Andrisi Rukia have maintained strong repayment records,

while other members are gradually expanding stock and improving working

capital in the current loan cycle.

Through the SMG Reserve Fund, FINCA Uganda has empowered many groups

that had dropped out due to outstanding balances—helping them regroup, work

together to raise savings to clear part of the arrears, and regain eligibility for

refinancing.

Disan Katabalwa, Deputy Project Manager at FINCA Uganda, said the reserve

fund is intended to protect lending groups from unforeseen disruptions.

“We understand that unexpected challenges can arise, and we’re committed to

supporting our clients through thick and thin. Our SMG Reserve Fund is designed

to cushion groups like Anyawi against shocks that could reverse their progress. In

settlement settings, where incomes are often unpredictable, timely support ensures

clients maintain access to credit and continue growing their businesses,” Disan

said.

Ada Jackline, the Branch Manager at FINCA Uganda, added that the group’s

resilience and commitment to repaying their loan is commendable. “We’re happy

to have an intervention that strengthens financial discipline within groups and

promotes long-term client retention.”

Financial experts note that reserve mechanisms like this are vital in refugee

settlements, where economic activity is largely informal and vulnerable to shocks.

With this support, the group has resumed stable operations and continues serving

customers within Ayilo 1 Settlement and the surrounding communities.

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Speke Resort Munyonyo has stepped beyond its luxury suites to lead a large-scale community clean-up exercise aimed at improving sanitation in the surrounding neighbourhood.

In a demonstration of Corporate Social Responsibility (CSR), staff members temporarily set aside their routine hospitality duties and took to the streets armed with brooms, hoes, slashers and garbage bags. The initiative focused on clearing litter, trimming overgrown areas and promoting better hygiene practices within the community.

The clean-up was spearheaded by the resort’s General Manager, Greg Petzer, who led a team equipped with gloves and protective gear as they collected waste and swept nearby roads.

Petzersaid that this is not the first time the staff clean up the resort’s surroundings and they shall keep doing that to encourage the community to keep the community clean and beautiful.

“We want the environment around the resort to match or reflect the high standards maintained inside the facility,” he said.

Speaking during the exercise, management emphasised that the effort was part of a broader commitment to environmental stewardship and community partnership.

“This is part of our ongoing commitment to environmental responsibility and maintaining a clean and safe neighbourhood for everyone,” management noted.

The management added, “We believe the standards we uphold within the resort should be reflected in the community around us.”

The exercise resulted in visibly cleaner streets and public spaces, while also sending a strong message about shared responsibility in maintaining a healthy environment.

Residents in the area welcomed the gesture, with some joining the exercise in solidarity. Community members praised the resort for setting an example and strengthening ties with its neighbours.

Resort officials said the initiative is not a one-off activity but part of a continuous programme aimed at fostering sustainability and positive community relations.

Speke Resort Munyonyo reaffirmed its position not only as a leading hospitality destination but also as an active partner in building a cleaner and greener community.

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Uganda’s economy registered an improvement in January 2026, supported by better business conditions, rising consumer demand and increased employment levels, according to the latest Performance of the Economy Report.

The report indicates that economic activity continued on an upward trajectory during the month under review, reflecting sustained resilience across key sectors.

“Economic activity during January 2026 continued to improve, characterized by improvements in business conditions, increased consumer demand, and employment,” the report states.

High frequency indicators further signaled optimism within the private sector. The Purchasing Managers’ Index and the Business Tendency Index both remained above the 50 mark threshold, a level that signals expansion in economic activity and a positive business outlook.

“The high frequency indicators of economic activity and business sentiments, that is the Purchasing Managers’ Index (PMI) and the Business Tendency Index (BTI) remained above the 50-mark threshold, indicating improvements in economic activity and outlook respectively,” the report notes.

However, inflation registered a slight uptick during the month. Annual headline inflation rose to 3.2 percent in January 2026 from 3.1 percent recorded in December 2025. The increase was mainly attributed to higher core inflation as well as rising Energy, Fuel and Utilities costs.

“Annual headline inflation slightly increased to 3.2 percent in January 2026 from 3.1 percent in December 2025, mainly on account of an increase in both core and Energy, Fuel and Utilities inflation,” the report explains.

On the currency front, the Ugandan Shilling strengthened against the US Dollar. During January, the Shilling appreciated by 0.4 percent, trading at an average mid rate of Shs3,562.14 per dollar compared to Shs3,575.23 in December 2025.

The appreciation was largely attributed to global weakening of the US Dollar alongside increased foreign exchange inflows from exports and portfolio investments.

“In January 2026, the Ugandan Shilling appreciated by 0.4 percent against the US Dollar… This performance was largely driven by the global weakening of the US Dollar, coupled with increased foreign inflows from exports and portfolio investors,” the report states.

Monetary policy remained steady during the period, with the Central Bank Rate maintained at 9.75 percent for the sixteenth consecutive month. Authorities indicated that the rate remains appropriate to sustain economic recovery while anchoring inflation expectations toward the medium term target.

“The Central Bank Rate remained unchanged at 9.75 percent in January 2026… This rate was considered appropriate to support economic activity, while ensuring that inflation stabilizes at the policy target rate of 5 percent over the medium to long term,” the report adds.

Meanwhile, Uganda’s external trade position showed notable improvement. On a year on year basis, the merchandise trade deficit narrowed by 24 percent to $206.42 million in December 2025 from $271.65 million recorded in December 2024.

The improvement was driven by a sharp rise in export earnings, particularly from mineral products and coffee.

Merchandise export receipts surged by 83.5 percent, rising from $760.31 million in December 2024 to $1.395 billion in December 2025. The growth was largely supported by increased earnings from coffee, mineral products, and cocoa beans.

Overall, the report shows a recovering economy supported by strong export performance, stable monetary policy, and improving business confidence, despite a modest rise in inflation.

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Two years ago, Jessica Muteteri’s salon business was on life support. Rent arrears loomed, utility bills piled up like stormy clouds and staff wages tightened around her enterprise “like a chokehold,” she recalls. The glow of entrepreneurship had dimmed into a daily struggle for survival and living hand to mouth.

Then came a lifeline, through a friend, Muteteri secured a Shs5 million loan from Equity bank, repayable within twelve months. That single injection of capital, she says, “transformed my business and redefined my entrepreneurial journey.”

So, when a text message arrived inviting her to a seminar titled Grow Your Salon Business with Equity Bank, hesitation was not on the menu. Muteteri not only confirmed her attendance immediately but rallied fellow salon owners from Galilaya Arcade and neighbouring beauty businesses across Kampala to join her.

The seminar organised by Equity bank’s Commercial Department through its Micro segment unit was held at the Pope Paul Memorial Centre. More than 200 salon owners filled the venue, a sea of stylists, barbers, beauticians, and entrepreneurs united by a common desire-to grow.

Equity bank positions itself as a catalyst for transforming lives and businesses. Judging by the energized conversations and eager note-taking, many participants left carrying more than brochures, calendars and T-shirts; they left with blueprints of managing successful businesses.

Central to the initiative was a partnership with the Federation of Uganda Salons and Beauty Professionals Association (FUSPRO), the umbrella body for salon operators nationwide. Officially recognized in 2016 by government authorities, FUSPRO now operates in 141 of Uganda’s 146 districts and represents approximately 120,000 registered salon owners and trainers.

FUSPRO CEO Celestine Kamanyire, who delivered a training session during the workshop, emphasized a critical gap the federation seeks to close.

“As a federation, one of the key things we lack is training on financial literacy, how to operate a business, having a collective voice, and professionalizing our craft,” said Kamanyire.

Bob Paul Lusembo, Head of Micro Business at Equity bank, translated theory into practical steps. He guided participants through daily savings habits, disciplined record-keeping, group lending models and specialized loan products such as Equi-Mama, designed for women entrepreneurs.

For Esther Namutebi, another attendee, the timing could not have been better. Power shortages had crippled her operations and the dream of purchasing a generator and additional equipment felt out of reach.

“My business has been struggling due to power shortages but now I know how to access financing and invest back into my salon,” she said.

Asked what she would carry back to her community in Nansana, she was emphatic, “In one day, we have learnt not just how to get loans, but how to use the money so that it transforms the business and we can pay it back.”

Beyond financing, the seminar stressed formalization. Kamanyire highlighted the importance of proper documentation such as business registration, obtaining a Tax Identification Number, and maintaining a dedicated business account. Compliance with institutions like the Uganda Registration Bureau of Standards, he noted, opens doors to credibility and growth.

For Muteteri, whose journey began with desperation, the transformation now feels tangible. Her Galicious Beauty Parlor, she says with a confident smile, is “ready to hang with the big boys.”

That sentiment echoed across the hall. The seminar was not merely a training session. It was a morale reboot for an industry powered largely by small, informal enterprises run by women and youth.

FUSPRO officials confirmed that similar seminars will soon roll out across Western, Eastern, and Northern Uganda, aiming to replicate the Kampala momentum nationwide.

If the energy in the room was any indication, Uganda’s salon sector may be on the verge of a makeover of its own, one powered not just by scissors and styling gel, but by knowledge, structure, and access to capital.

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