Youth- and women-led MSMEs in Uganda continue to face structural challenges.This includes limited access to finance, high costs of digital devices, and low levels of digital literacy, which hinder their growth and participation in the digital economy. To address these barriers, the United Nations Capital Development Fund (UNCDF), under its FinWise program, commissioned a market systems assessment to explore pathways to enhance digital and financial inclusion for youth-led MSMEs, in line with Uganda’s National Development Plan III.
MSC conducted the assessment, applying a multi-method research approach. The team led extensive desk reviews and fieldwork, which included 48 focus group discussions with MSME owners across sectors and 30 key informant interviews with stakeholders such as financial institutions, regulators, and policymakers. We analyzed the current digital transformation status of MSMEs, identified key barriers and gaps, and developed practical recommendations to address financing challenges, particularly related to digital devices and credit access. MSC also facilitated a validation workshop and shared findings with stakeholders to inform future interventions.
The assignment is expected to shape UNCDF’s technical assistance programs and provide practical insights for ecosystem players to unlock affordable device financing, improve digital access, and support youth-led business transformation. It ultimately aims to accelerate inclusive digital finance and contribute to economic resilience among young entrepreneurs in Uganda.
The United Nations Capital Development Fund (UNCDF) funded this project.
Juhudi Kilimo Limited (JKL), which serves over 90,000+ clients across 33 counties in Kenya—35% of whom are youth—sought to enhance its financial offerings for young people engaged in agriculture. It recognized the untapped potential of this demographic and intended to improve financial inclusion for youth and expand its footprint in the agri-finance market.
MSC provided technical assistance.We began with a diagnostic assessment that included rural household surveys and market research focused on youth needs. Based on the findings, MSC developed new product prototypes, refined existing products, updated credit manuals and appraisal tools, and trained JKL staff—including young managers—on product delivery. A pilot phase tested the new solutions, after which MSC supported product adjustments, marketing material development, and rollout planning.
The project is expected to significantly improve access to tailored financial solutions for youth in agriculture, which enabled them to invest in their ventures, increase productivity, and enhance their livelihoods. For JKL, the initiative strengthens its position in the agricultural finance sector and supports long-term growth and sustainability.
Incofin Investment Management funded the project.
Despite the growing interest in agriculture among young people in Sub-Saharan Africa, youth continue to face systemic barriers to enter and thrive in agri-enterprise. These include fragmented value chains, limited access to finance, weak institutional support, and misaligned policies. Governments and development actors have lacked a structured, evidence-based framework to assess ecosystem gaps and guide targeted interventions for youth engagement in agriculture.
To bridge this gap, MSC developed a comprehensive youth-driven agri-enterprise ecosystem assessment and development framework. We conducted a training needs assessment, facilitated policy and institutional analysis, and built tools—including a value chain selection tool—to help stakeholders identify and prioritize youth-friendly interventions. We mapped key actors and opportunities in countries like Rwanda and Senegal and highlighted areas of over- and under-investment.
The framework has become a powerful diagnostic and planning tool for governments, donors, and ecosystem actors. It enables stakeholders to make data-driven decisions, align interventions, and deploy resources more effectively. In Rwanda and Senegal, the framework has already informed national programming and investment plans aimed at strengthening youth participation in agriculture—supporting inclusive economic growth and sustainable job creation.
Uganda’s youthful population—77% under the age of 30, many of whom are smallholder farmers—faces limited access to tailored financial products. Despite serving over 240,000 depositors and 32,500 loan clients, Opportunity Bank Uganda (OBUL) had limited offerings designed specifically for youth, particularly those in agriculture. OBUL sought to close this gap to align with its vision of becoming the bank of choice for all.
MSC conducted a training needs assessment and worked closely with OBUL to build internal capacity to serve the youth segment. Using the Market Insights for Innovation and Design (MI4ID) approach and qualitative research, MSC guided the development of a matched savings product and an agriculture-linked credit product. These solutions were designed to promote financial discipline and support income-generating activities among young farmers.
MSC also supported OBUL in developing a product roadmap and business case, and facilitated pilot testing, including mid- and end-term reviews. As of December 2021, OBUL had successfully integrated the new youth products into its operations. The pilot showed strong demand and repayment capacity among youth clients, validating the business case and demonstrating the potential for long-term portfolio growth.
This initiative enabled OBUL to attract a previously underserved yet high-potential market segment, enhance portfolio quality, and expand its outreach—contributing to youth financial inclusion and agricultural productivity in Uganda.
OBUL’s youth portfolio is now worth USD ….or reaches xxxxxx numbers
The project was funded and supported by Opportunity Bank Uganda (OBUL)
The Innovate, Implement, Impact (i3) Program makes use of technology for meaningful financial inclusion. Under this program, MSC works with implementation partners in both Bangladesh and Vietnam to optimize the design and delivery of products and services to meet the needs of low- and middle-income (LMI) clients.
MSC also works with FinTechs like technology-based start-ups, Mobile Financial Services (MFS) providers, and IT solution or platform providers. We facilitate partnerships with Financial Service Providers (FSPs), such as banks, microfinance institutions (MFIs), and cooperatives to enable large-scale outreach and provide the critical last-mile access.
The i3 Program will make a direct difference to at least 400,000 under-served LMI clients over a period of three years in both markets. It will improve the financial health by LMIs in two ways: by enabling access to formal financial services for new customers, or through deepening usage and extending a border range of services to existing customers. In addition, we expect that around five times more people will derive indirect benefits because of ripple effects from the interventions in these markets.
The i3 program impacted more than 21.5 million people from the LMI segment across Bangladesh and Vietnam.
Supported by MetLife Foundation, the program is also active in China and Malaysia. For more details visit the i3 Program website.
MSC was commissioned by Opportunity International to build the capacity of implementation of its partners in Africa to measure, analyze, and report social data.
We provided technical support to seven out of 10 OI partners in Ghana, Uganda, Malawi, Rwanda, Mozambique, and the DRC. Over two years, we helped them implement the SPM strategy of Opportunity International.
We customized the OI for African MFIs and developed a plan to adopt best practices in SPM as captured in the “social performance dashboard”. The dashboard drew heavily from the Universal Standards for Social Performance Management (USSPM). We built the capacity of the implementing partners of OI to collect, analyze, report, and use social data to make decisions and report results to the external stakeholders. We also supported other partners who did not officially participate in the program but worked towards best practices in SPM. Finally, we documented the project’s learnings with recommendations for the future.
Opportunity International Network commissioned the project.