Evaluering
Muhabura Micro Finance Programme Final Report of Evaluation
Muhabura Diocese established a partnership with Strømme Foundation (SF) in 1989 for support of the Community Based Health Care (CBHC) project. The microfinance intervention was introduced in 1995 after the realization that assistance to the target group of the CBHC i.e. widows, guardians of orphans would yield better results if credit was extended to them to improve their micro businesses. Accordingly the programme received loans and grants, the latter in form of technical support and assets. With initial target group recording high default, the programme changed its target group to 'enterprising poor' in June 1999 and repayment performance improved between 1999 and 2000. A leadership crisis ensued in the diocese, with two groups one pro and the other against the elected successor of the first bishop who retired in 2001. The disagreements intensified negatively affecting including performance of the programmes supported by SF e.g. clients taking sides and being encouraged not to pay back their loan obligations. In July 2003, one of the groups moved the operations of the microfinance to another location and formed a company, which was named Muhabura Financial Services Institution (MFSI) Ltd in August 2003. The scope of work involved evaluating the operations of the microfinance programme from inception to date and recommend a way forward, in the background of the leadership crisis in the diocese that has adversely affected the micro finance programme.