How Microloans Are Transforming Ugandan Villages and Saving Lives

From small beginnings, the Faith of a Child Foundation has helped save hundreds of babies in Uganda and loaned funds to start businesses that provide for the needs of local communities.
The organization began supporting Sonrise Ministries in 2018, with funding for infant formula and diapers to assist abandoned babies. The early development projects were simple and basic — the U.S.-based foundation repaired a sewer pipe, strung barbed wire for the orphanage farm and repaired broken desks to establish a community school. The development became more complex over the years as the foundation funded the construction of a new building for severely malnourished babies and loaned money to a group of women start a trucking business.
The trucking business paid back its loan, and the money was loaned again to establish a motorcycle taxi business, an auto-parts business, a farm and a stationery store. These new business ventures would not have happened without the microloans, because the low trust in Ugandan society leads to extremely high interest rates on loans.
As the community grew, the local Ugandan orphanage director decided a hospital would be needed. Six of every 1,000 mothers in rural Ugandan villages die because of poor health-care choices. Faith of a Child responded by providing funds to build the hospital. More than 500 babies have been saved from disease, malnourishment and abandonment
Today, the villages surrounding the orphanage properties have transformed. Where witch doctors had been mutilating and sacrificing children 10 years ago, today one witch doctor is working on the orphanage farm, growing crops to feed the children. The trucks are used to transport crops to market, so the orphanage has cash available. Families buy school supplies at the stationery store. And the motorcycle taxi business provides teachers with transportation to work at the orphanage school.
One success story is that of Dennis, who serves as a social worker at the Sonrise Children’s Home in Kamuli, Uganda. With his family living more than 50 km away, it was difficult for him to get to work. As an orphan himself, Dennis is deeply committed to helping the children at the Home and has been looking for a way to support his own family. Faith of a Child Foundation loaned Dennis enough money to buy three motorbikes, and he hired drivers to deliver parcels and passengers. With the business thriving and his loan repayments ahead of schedule, Dennis also gives free motorbike service to the orphanage staff as part of the no-interest loan agreement. It’s a win-win for everyone involved.
So far, 100 percent of the microloans from Faith of a Child Foundation are being repaid, and local villagers are building a church, using local funds. The farms surrounding the orphanage properties are now neat and tidy. Neighbors walk for miles to attend church services on two campuses, and any remaining traces of witchcraft are disappearing from the community.
The organization’s work helping children stretches from Africa to Latin America. Every penny of donated funds since 2018 has been spent directly on these community projects, because a small number of supporters separately cover all administrative costs. For more information, visit www.faithofachildfoundation.org.
–Dwight Widaman