MICROFINANCE INSTITUTION
Umoja Microfinance.
Microfinance institution in Uganda financing the purchase of clean cooking solutions
Investment summary.
- Spark+ investment
- USD 0.8m
- Instrument
- Senior debt
- Facility type
- On-lending
- Portfolio category
- MICROFINANCE INSTITUTION
- Countries of operation
- Uganda
- E&S risk classification
- FI-3
- Portfolio status
- Active
Technology and business model.
Microfinance institution
Investment narrative.
Umoja Microfinance SMC Limited is a Tier IV microfinance institution serving over 84,000 borrowers, 100 percent of whom are women and roughly 70 percent of whom live in rural areas. Founded in 2020 after acquiring a small local lender, Umoja has rapidly expanded to 89 branches across Uganda, offering small, short-term group loans averaging USD 100 to 800 to support women’s income-generating activities.
The Spark+ facility will finance loan-portfolio growth related to clean cooking. Umoja plans to launch a new product line financing improved biomass and LPG cookstoves, as well as related household energy equipment, offered to existing women clients under its group-lending framework.
The MFI is partnering with local LPG and cookstove suppliers for product sourcing and distribution. By embedding affordable clean cooking finance into its mainstream lending, Umoja aims to improve health outcomes, reduce household fuel costs, and advance gender and climate goals for rural women entrepreneurs.
Use of proceeds.
Capital for onlending to support portfolio growth and develop a clean cooking loan book.
Company.
- Registered name
- Umoja Microfinance