Better data on client outcomes is vital to strengthen the impact of inclusive financial service providers. To advance this goal among the companies we support as well as the broader industry, in 2022, Accion became a founding partner of the MFI Index, created by the firm 60 Decibels.

Now in its fourth year, the MFI Index has given the microfinance industry greater visibility into customer outcomes by surveying more than 88,000 customers from 126 financial service providers globally, including many Accion partners.

Accion has continued to deepen our partnership with 60 Decibels over the past few years, supporting additional survey modules on savings and customer protection in 2023, and adding gender and climate modules in 2024. We’ve also increased the number of our portfolio companies participating each year—and their results have helped inform our Impact Report.

UGAFODE Microfinance Limited (MDI) began participating in the MFI Index in its first year. UGAFODE provides financial services for low-income clients across Uganda, with a focus on refugee communities coping with extreme economic challenges. UGAFODE was the first regulated financial institution to unlock economic opportunities for refugees in Uganda, tearing down long-standing barriers that had excluded these communities from formal financial services.

Accion has supported UGAFODE’s efforts to create income-generating opportunities for refugee women in these communities, helping them to sell goods on the digital marketplace Soko Uganda, link their UGAFODE bank accounts to receive payments securely and, if eligible, receive working capital loans. “For many, it was their first experience with a savings account and formalized banking, and thus, their first inclusion in the formal banking sector,” says UGAFODE’s Chief Executive Officer Shafi Nambobi. Accion has also supported UGAFODE’s trainings and efforts to build clients’ digital and financial capabilities.

What the data shows about UGAFODE’s work in Uganda

In the 2024 Index, UGAFODE scored in the top 20th percentile both regionally and globally for business impact, as 95 percent of clients reported increased income, and 55 percent of customers reported their income ‘very much’ increased thanks to financial services provided by UGAFODE (a more than 100 percent increase from 2023). Additionally, 38 percent of customers reported an increase in the number of paid employees, to an average of three employees (up from 32 percent in 2023).

The percentage of UGAFODE customers reporting significant quality of life improvements also more than doubled year over year. The share of clients reporting that their ability to manage their finances had ‘very much’ improved rose from 29 percent to 56 percent, and similarly the share of clients who said their confidence ‘very much’ increased rose from 21 percent to 66 percent.

As one UGAFODE client said through the survey: “With the improvement in my business, life has changed for the better. I can now pay my children’s school fees on time, which has significantly reduced the stress I used to feel, especially at the start of a new school term.”

Based on the data, UGAFODE’s typical customer is a 30 to 40-year-old woman living in an urban area, who has been a customer for more than two years.

Continuing to improve practices for clients

Importantly, collecting data on client outcomes is not just about identifying strengths—but also finding areas for improvement. While the share of UGAFODE customers reporting ‘strong understanding’ of loan terms rose from 39 percent to 55 percent year over year, and the share of clients reporting loan repayment ‘is not a burden’ rose from 54 percent to 74 percent, UGAFODE’s client protection indicators were slightly below the regional benchmark, indicating a need to strengthen practices in this area.

Additionally, the MFI Index survey results revealed a 10 percent gender gap on understanding financial products’ terms and conditions. This highlights the continued need for a gender-intentional approach in UGAFODE’s customer outreach and support, to ensure women and refugees in their client base have the support they need to effectively apply financial services to their lives.

Accion will use the findings of the MFI Index survey to continue supporting UGAFODE, particularly around strengthening their customer protection practices and providing tailored support for women clients. And given UGAFODE’s strong progress across most customer dimensions year over year, UGAFODE can use these findings to attract additional investors to support their long-term financial stability.

These efforts can make a real difference in the lives of clients. One survey-respondent said: “As a widow and a refugee, providing food for my family was always a challenge. Having a savings account with UGAFODE has made a big difference, giving me access to a loan. Now, I can rent land, grow crops, and ensure my family has enough to eat—something that was difficult before my connection with UGAFODE.”

By continuing to offer tailored support and improve practices for clients, UGAFODE is opening pathways to dignity, self-reliance, and economic prosperity for refugee communities in Uganda.