This paper presents the mid-term review of the DFID initiated support programme to the seven financial services associations (FSAs) in Uganda, in October 1998. The purpose of this support programme is to facilitate provision of financial services to a wider proportion of the rural population.

The review makes the following observations on the performance of these FSAs:

Location of FSAs is far removed from that of the project monitoring unit (PMU).
Performance on financial, governance and management criteria of five out of the seven FSAs, is good.
Ownership structure of FSAs is ambiguous.
Development of an apex level institution of FSAs is urgently required to ensure proper supervision.
Demarcation of the role of the board and responsibilities of the management is needed, since division between the board and the management is essentially nonexistent.
Management staff of FSAs needs better training.
Prompt repayments by the board members of FSAs is required to set good examples.

This midterm review recommends to DFID to renew its contract with FSAs and provide support to the PMU for the remaining duration of the project.

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