SOFALSACCO: Empowering Financial Growth Through Savings and Credit

A Financial Lifeline for Functional Adult Literacy (FAL) Members

Access to financial services is a major challenge for low-income individuals, particularly those in rural areas. Traditional banking systems often exclude people with little to no formal education, making it difficult for them to save, access credit, or grow their businesses. In response to this challenge, HADEO established SOFALSACCO (Soroti Functional Adult Literacy Savings and Credit Association) in 2021—a community-driven financial system designed exclusively for members of the Functional Adult Literacy (FAL) program.

SOFALSACCO is more than just a savings and loan organization; it is a tool for economic empowerment, financial independence, and long-term sustainability. By providing low-interest loans (at just 3%) and encouraging a strong savings culture, SOFALSACCO helps its members invest in businesses, improve their livelihoods, and break the cycle of poverty.

How SOFALSACCO Works

SOFALSACCO operates within the structure of the FAL program, ensuring that all participants have access to financial support while also learning essential literacy and numeracy skills. The system is designed to be inclusive, easy to manage, and sustainable, enabling participants—many of whom were previously excluded from financial services—to gain control over their economic futures.

Key Features of SOFALSACCO

Savings Culture: Members contribute small, regular savings to build financial security and investment opportunities.

Group-Based Loan System: Instead of individual loans, SOFALSACCO allows small groups of 3–6 members to apply for loans together. This fosters a sense of accountability and responsibility within the groups.

Affordable Interest Rate: Unlike commercial lenders, SOFALSACCO offers low-interest loans at only 3%, making it easier for members to repay and reinvest in their businesses.

Progressive Loan Access: Members can only apply for a new loan after repaying their previous one, ensuring a sustainable cycle of borrowing and repayment.

Community Empowerment: The cooperative is built on trust, teamwork, and shared financial responsibility, strengthening social bonds and economic stability.

The Impact of SOFALSACCO

Since its inception in 2021, SOFALSACCO has had a transformational impact on its members, many of whom are women and small-scale entrepreneurs.

Key Achievements:

Hundreds of FAL members have accessed loans, enabling them to start or expand businesses.
Increase in household income as members invest in farming, retail, and service-based enterprises.
Strengthened financial literacy, with members learning how to manage money, track expenses, and plan for the future.
Women’s empowerment, as more women gain access to financial resources and become financially independent.

Success Stories: Changing Lives Through Financial Inclusion

Florence’s Story – From Struggle to Stability

Before joining SOFALSACCO, Florence was unable to access credit to expand her small vegetable-selling business. She joined a group of five women in her FAL class and applied for a small loan. With this, she increased her stock, bought better storage materials, and expanded her customer base. Today, she earns a steady income, supports her children’s education, and even mentors other women in her community.

James’ Journey – Investing in Agriculture

James, a small-scale farmer, struggled with seasonal income instability. Through SOFALSACCO, he and his group received a loan to buy quality seeds and fertilizer. His farm yield improved, and he was able to repay the loan on time while making a profit. Now, he plans to expand into poultry farming with support from his group.

Why SOFALSACCO Matters

Financial inclusion is a crucial step toward breaking the cycle of poverty. By providing accessible savings and credit options, SOFALSACCO empowers FAL members to invest in their futures, support their families, and contribute to their communities’ economic growth.

SOFALSACCO is not just about money—it’s about building financial resilience, fostering entrepreneurship, and promoting self-sufficiency.

The Future of SOFALSACCO

Building on its early success, HADEO aims to expand SOFALSACCO’s reach to more FAL groups across Uganda. Future plans include:

Scaling Up Loan Access: Increasing the number of small groups eligible for loans.
Financial Literacy Training: Enhancing financial management skills for better decision-making.
Partnerships with Microfinance Institutions: Creating opportunities for further financial growth.
Digital Financial Services: Exploring mobile banking solutions for easier transactions.

How You Can Support SOFALSACCO

Sponsor a FAL Member – Help provide financial training and loan opportunities.
Invest in Financial Literacy – Support programs that teach savings and business management.
Spread Awareness – Share our impact stories and advocate for financial inclusion.
Donate – Your contribution helps more people access life-changing financial resources.

Together, we can empower more people, strengthen local economies, and build a future of financial independence for all.