Living Goods
BRAC Joint Venture in Uganda

In early 2007 LG initiated a joint venture to pilot its innovative model in Uganda with BRAC. BRAC is one of the worlds largest most efficient and effective development organizations. Founded by Fazle Hasan Abed in Bangladesh in the 1970s, BRAC’s core competency is micro finance. It serves over five million micro credit borrowers and operates its lending profitably, despite charging below market interest. BRAC implements its lending through Village Organizations (VOs) composed of 25-30 women. BRAC targets the hard core rural poor who are not served by other lending groups. The average loan is ~US$100-200. BRAC practices a highly integrated strategy of development, using VOs as the conduit for delivering a range of other social services including education, agriculture and health.

BRAC initiated efforts to replicate its microfinance model in Africa in 2006, starting with Tanzania and Uganda. In just 18 months in Uganda BRAC opened 34 branch offices in 22 districts, created 1400+ village organizations with 40,000 members, and made loans to 33,000 women. To date not one group has defaulted on a loan. Much of the credit for this impressive launch goes to Mr. Khondoker Ariful Islam, BRAC’s Uganda Country Manager. Mr. Islam has over 20 years with BRAC and possesses exceptional judgment, drive and management ability.

In Uganda BRAC recruits Living Goods Community Health Promoters from its existing VOs. The advantages of this are potent. The members of the VOs are essentially pre-screened by local officials and BRAC. The VO can also provide both a natural customer base for the CHP as well as an imprimatur in the community. Living Goods field agents work out of existing BRAC branch offices to train, support and monitor the mobile Community Health Promoters. Existing branch offices are leveraged as supply depots as well.