Development Although Ugandan community households over the years have made efforts to alleviate poverty, they are still experiencing poverty challenges inhibiting their efforts towards sustainable development livelihoods.

According to the 2016 poverty assessment, Uganda has reduced monetary poverty at a very rapid rate. The proportion of the Ugandan population living below the national poverty declined from 31.1% in 2006 to 19.7% in 2013; however, this is still significant proportion of the population struggling to generate income. Community households rely on household incomes generated from their small scale businesses. Often times communities are constrained by the lack of enough incomes to meet their family needs. This results to seeking loans from institutions which later increases on their financial burden with having to pay back these loans with interest.

Economic opportunities have the key to community’s success. In Uganda, micro finance forms a basis of the Ugandan creation of economy opportunities, with one third of working population employed by small business and 79% of the credit coming from informal sources (Microfinance in Uganda-University of Southamption Data). Since national lending does not reach most marginalized communities, microfinance offers a collective solution that lends small increments of capital to local businesses. It helps in poverty mitigation and economic growth, as well as economic inclusion and the expansion of social capital. These benefits additionally work to encourage and develop citizen participation, increasing political awareness and empowerment among the have-nots of society.

Many of non governmental organizations are working to provide the rural poor with increased access to cedit by teaching community members about the benefits of savings, encouraging them to save, offering loans to small businesses.