Grameen Foundation : Resource Center : Print Newsletter : Spring 2006 : ”Village Phones” Connecting Uganda
”Village Phones” Connecting Uganda’s Rural Villages
The success of the Village Phone Uganda program continued exceeding expectations in 2005. The program is accelerating the rise above poverty for more than 3,500 microfinance clients and bringing telecommunications for the first time to the country’s remote areas.
Now, 53 out of 56 districts in Uganda have at least one Village Phone operator. Having access to a phone is saving time and money for poor families, freeing up more of their resources for basic needs.
The initiative is modeled on a program originally conceived by Grameen Telecom in Bangladesh. Microfinance clients purchase pay phone “toolkits” from microfinance institutions, which include a cell phone. The clients then open and operate pay phone businesses by collecting fees for calls placed on their phones. To replicate the program in Uganda, GFUSA partnered in 2003 with local microfinance institutions and MTN Uganda, the country’s leading telecommunications firm.
The newfound connectivity in villages is bringing higher levels of productivity, savings and safety to entire communities. Able-bodied family members no longer have to lose hours traveling, sometimes across dangerous territory, to gather information. Merchants can get market prices for their goods, allowing them to get better prices for their products.
The far-reaching impact of Village Phone Uganda prompted GFUSA to introduce a pilot program in Rwanda. At the end of 2005, the initiative had successfully enabled 50 microfinance clients to establish their own pay phone businesses. Plans are underway for a permanent program in Rwanda. For more of the latest news on Village Phone, visit www.gfusa.org/villagephone
Grameen Foundation : Resource Center : Print Newsletter : Spring 2006 : ”Village Phones” Connecting Uganda
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start businesses and escape poverty. Our global network of 55 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 34 million people in 24 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28.
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