Status Update: February 9, 2009

Kiva’s partnership with Share an Opportunity MFI (SAO MFI) has now been CLOSED. Kiva staff discovered key organizational weaknesses at SAO MFI in late 2007, reinforced by a Planet Rating report, and progressively reduced SAO MFI’s fundraising limit on Kiva. In January 2008, SAO MFI ceased fundraising on Kiva and was required to send all funds from repaid loans back to Kiva. Over the course of 2008, Kiva received $29,954 in wire transfers and returned these funds to lenders. SAO MFI made its last payment in December 2008 and, in the last 5 months of 2008, has been unable to make payments in full and on time.

SAO MFI currently has $4,546 still outstanding and overdue to Kiva lenders. Kiva has determined that further repayments from SAO MFI are highly unlikely, so all active loans managed by SAO MFI awaiting repayment are now considered to be in default. While further collections are highly unlikely, if Kiva is able to collect further funds they will be distributed proportionally to affected SAO MFI lenders, and we will notify you by email. We can add that, in many cases, it appears that entrepreneurs working with SAO MFI were delinquent in repaying loans to SAO MFI, but these delinquencies are difficult to confirm considering SAO’s organizational weaknesses.

Original Partner Description

Mission Statement

To facilitate Communities to start and manage sustainable and responsive community-owned financial institutions that create economic opportunities

Share An Opportunity Micro Finance Ltd (SAO) is a SACCO promoter and direct microfinance provider. It started microfinance operations in 1998 on a pilot basis in several districts. The aim was to learn from communities what their perceptions of the different approaches and methodologies in financial services existed. The lessons were encouraging and led to the official registration of SAO MFI (U) Ltd in 2002 as a promoter of branded SACCOs. It is supporting fourteen (14) SACCOs of which six are in Eastern Uganda and eight (8) in central Uganda.

In February 2007, SAO MFI started lending to individual enterprenuers who could not access loans from formal commercial banks to start and expand their businesses.

SAO MFI is a member of the Association of Micro Finance Institutions in Uganda (AMFIU) and works in partnership with the Uganda Cooperative Alliance (UCA). It adheres to the best practices of micro finance and AMFIU code of conduct.

SAO MFI program was developed from the sister program of Share An Opportunity Uganda which supports communities to implement social service components such as: primary health care, water and sanitation, adolescent and reproductive health, functional adult literacy, child development and food security.

In addition to direct microfinance provision, SAO MFI facilitates communities to start community owned instituitions. The community members pool their resources in form of share capital and savings which they lend to each other.

SAO's approach is that they facilitate community in the following:
Facilitate communities to form functional structures Capacity building through training on Business skills development, financial management, Savings mobilization, Enterprise selection, Management of viable IGAs, Purposeful borrowing for sustainable development, Gender conderations and other cross cutting dimensions e.g HIV/AIDS and Environment. Participatoring monitoring and Evaluation of their own progress. The community members are trained in governance and leadership skills to manage their development initiatives.

For more information contact us on:
Plot 42 Bombo road-Wandegeya Baptist House
Po box 23408 Kampala
Tel: +256-414-530421 Fax + 256- 414 -543023
E-mail:saomfi@utlonline.co.ug