Oxfords, sneakers, and ankle boots line the walls and tables in Sarah Nazziwa’s shoe stall in a busy market in Kampala. Sandals fill one table, and canvas slip-ons cover another. Every available inch showcases inventory, and customers crowd around to see what she has in stock. The 35-year-old entrepreneur has been in the industry for 15 years, first learning to run a retail business from her aunt and later striking out on her own. Her busy shoe stall, and a thriving wholesale business behind the scenes, are a testament to years of persistence and the possibilities when women-owned businesses have access to the right financial services.

Sarah initially worked in her aunt’s business before striking out on her own. “I learned the business of selling shoes from her. When the time came, I left her to start my own business,” she remembers. Her earliest days were limited by cashflow and tiny margins. Ordering inventory and paying taxes would eat up her available cash, she remembers, and unexpected rent increases challenged her most careful financial planning. She looked to other entrepreneurs for advice on how to make her business stronger and more stable.

“I got to know about UGAFODE through a friend,” says Sarah. “I explained to him that I was capable of selling shoes, but I had no capital. I had ready buyers but lacked the goods to meet demand. He directed me to UGAFODE, where he was a client.”

UGAFODE Microfinance Ltd. is a Ugandan microfinance institution and long-time partner of Accion. UGAFODE provides responsible, inclusive financial services to customers like Sarah, whose operations might be seen as too small, remote, or risky to receive credit from larger financial institutions. Through investments and advisory services, Accion has worked with the UGAFODE team to improve their financial products to reach more underserved customers, including women and refugees in Uganda.

On her friend’s advice, Sarah reached out. A loan officer reviewed Sarah’s financial situation and her business plan for her shoe shop, explained the right loan product offering for her needs, and walked her through various elements of the loan. The loan officer introduced her to small business loans, which are smaller in value, offered at lower interest rates, and provide flexible repayment options. These terms make the loans more accessible to women-owned small enterprises, which is key to ending poverty and boosting women’s economic empowerment.

Sarah recalls, “It was a good idea, and the interest rates were reasonably low, so I signed up. They started lending me money that I have been paying back, and this could be my fifth time, or even the sixth time in my walk with [UGAFODE].”

With the loan, Sarah was able to order more inventory to meet her customers’ demand. This increased her revenues, allowing her to explore sourcing more inventory and wholesaling it to resellers outside the city. She also created a mobile bank account, also provided by UGAFODE. Now, she can accept digital payments and make small, daily repayments towards her loans using her mobile phone. 

“In this process, I learned that I was capable of servicing my loan while my business survived and thrived,” she says.

Sarah’s success has been transformative. She’s proud to be able to provide food, clothing, shelter, and education to three children, whom she hopes will follow in her footsteps and eventually take over her business. Her three employees also earn a living and learn the business the same way she did with her aunt.

“My life has changed. It has improved my business, so I am not where I used to be. Since meeting UGAFODE, they’ve improved my life by lending me money with relatively low interest rates.”

“This [loan] has helped my business thrive,” she says. “I am happy. I am very happy.”