Since 2013, Fauna & Flora International (FFI) has been working with Bulyango, Kasenene and Kidoma-Bulimya Private Forest Owners Associations in the Northern Albertine Rift, Uganda. The focus is to empower local communities and strengthen community-based natural resource management through reforestation of two wildlife corridors for chimpanzees (Budongo–Mukihani and Bugoma–Wambabya forest linkages) and improved monitoring of chimpanzees and any threats to them.
Within the Private Forest Owners Associations, several Village Savings and Loan Associations have been established as an incentive for communities to engage in conservation activities, and to provide access to affordable microcredits that enable community members to invest in conservation-friendly enterprises. At the project outset, FFI provided capacity building for community members to enhance the governance and management of savings and loan groups. Groups that demonstrated sufficient capacity were provided with additional seed funds through the Private Forest Owners Association, to enable grants through a revolving fund mechanism.
Seed funding for the revolving fund mechanism was transferred to the bank accounts of the Private Forest Owners Associations so that they had ownership of this capital. Terms and conditions for the savings and loan groups to access the capital were mutually agreed through community-level discussion: (1) savings and loan group members can access the capital at a 20% annual interest rate, which is 4% lower than the market rate, with no collateral and minimal paperwork; (2) from the 20% interest, 12% will be for the operating costs of the saving and loan operations; and (3) the remaining 8% interest will provide a sustainable financing mechanism for chimpanzee and other wildlife conservation.
As of February 2022, 450 community members have accessed microcredits to pursue conservation-friendly agriculture and c. USD 1,900 were raised as sustainable financing for chimpanzee conservation, covering at least 40% of wildlife patrol costs. This has translated into more positive community attitudes towards conservation activities and provoked an influx of additional community members wanting to join the Private Forest Owners Associations, participate in conservation activities and benefit from opportunities for sustainable livelihoods.
Given these promising results, FFI aims to scale up the current savings and loan group model by increasing the geographical scope of the project, reducing the transaction costs associated with loan operations by adopting finance technology innovations, and exploring private sector finance partnerships to reduce the dependency of seed funds on grant funding. By improving the capacity of Private Forest Owners Associations to function effectively as grassroots organizations and strengthening the sustainability of these initiatives, FFI continues to champion community-led conservation within the Northern Albertine Rift.
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