SYPO

About us

SYPO Uganda Ltd. is the Ugandan microfinance company of the Dutch NGO Stichting SYPO. The impact of our microcredits is immense: women get the chance to start or expand their own business to increase the income of their households significantly. Through professional, innovative and low-cost operations in a network of small field offices, we can serve women in rural areas where essential financial services were previously not available. Today, the company has issued over 1400 loans to women in the Mukono and Buikwe districts, at a repayment rate of 99.9%. We will continue to carefully track economic and social impact of the project in the coming years, to ensure that we keep learning and continue to maximize the beneficial effects of the project.

The microfinance sector has shown (market data from www.cgap.com; www.kiva.org; www.mixmarket.org) that a portfolio of at least 3,000 loans is necessary for a microfinance company to reach sustainable levels. Our field offices have hundreds of loan applications waiting - the only bottleneck at the moment is that we do not have enough funds to lend out. By the end of 2015, we intend to reach a portfolio of 3,000 loans.

SYPO Uganda Ltd. has over 9 years of experience with economic projects in the Mukono and Buikwe districts and over 2.5 years of experience with microfinance. SYPO started working with microfinance in 2009, through the support of a local NGO in the setup of a microfinance programme. This first project was completed (i.e. continued independently) in 2011, upon which SYPO decided to start its own microfinance company in Uganda. Because of its success in microfinance, SYPO will continue to grow, improving more lives in Central Uganda. It is SYPO’s objective to:

“Grow the microfinance company SYPO Uganda Ltd. to a portfolio of 3000 loans by the end of 2015.’’

Uganda today is the 27th poorest country in the world with approximately 80% of the people earning less than $2.50 per day. However, with 7% annual economic growth until 2020 predicted by the IMF, and relative political stability for over 25 years, there is a strong base for substantial improvements in the near future. Rural areas do however not always benefit from this nationwide economic growth, because basic financial services are often not available in these more remote parts of the country. SYPO believes that by providing microcredits, the people of the Mukono and Buikwe districts will have the possibility to improve their lives and leverage the growth possibilities currently available in Uganda.

SYPO Uganda Ltd. focuses on groups of women in the Mukono and Buikwe districts in Uganda. Most women in rural Uganda – no matter how poor – have a plan to start or expand a simple business. The capital requirements of the women relatively small (on average ~€150,-), and the women are not registered or offer any collateral. It is for these reasons that conventional banks have chosen no to serve this segment. Microfinance around the world however has shown that, in spite of the complications associated with providing microloans to unregistered women, one can achieve cost-covering interest percentages and repayment rates by offering the right product and by maintaining solid operations.

To provide our clients with low-threshold, transparently low cost loans, SYPO Uganda Ltd. will have:
A. The right product – loans that are catered for the needs and growth of poor rural women
B. Lean operations – a professional flat organization with zero waste, supported by innovative IT solutions
C. The right people – great recruiting and HR processes to attract and maintain strong and independent loan officers
D. Repayment discipline – by having regular interaction with all clients, and diligent screening processes for all loans
E. Solid management and transparent reporting – adhering to international standards, and keeping full visibility on operational and financial key performance indicators
F. Learning based growth – close contact with the clients and social impact measurement to ensure continuous improvement and optimal products to achieve poverty reduction

In Uganda, everything is now in place - we have a great team on the ground, we have an innovative business model tailored to the challenging environment of rural Africa, we have the right product to serve poor women to realize their dreams, and all this at such low cost that we can afford to have the lowest interest rate to the clients. Hundreds of clients have applied for more loans. Please help us help them!