Shs520bn to be disbursed to PDM saccos through PostBank's Wendi

The Ugandan government has allocated shs 520 billion to be disbursed through  PostBank's Wendi mobile wallet  this quarter as part of the Parish Development Model, officials have said.

The allocated funds will benefit various groups, including small business owners, farmers, and low-income households.

By providing access to formal financial services, Wendi aims to empower these groups to improve their economic well-being and contribute to Uganda's economic growth.

According to officials,  the platform will facilitate the disbursement of over shs520 billion directly to 10,589 Savings and Credit Cooperatives (SACCOs) across more than 150 districts.

This initiative is part of the government's Parish Development Model program (PDM), aimed at promoting local entrepreneurship and economic growth.

Officials said by aligning with the PDM, Wendi is playing  a pivotal role in fueling household-level investments and revitalizing small businesses nationwide.

With a competitive 10% interest rate on savings, Wendi is not only driving financial inclusion but also promoting the saving culture among Ugandans.

As more than one million active users tap into these services, the ripple effects are evident: stronger local economies, enhanced financial literacy, and a growing sense of trust in formal financial systems.

Edward Katende, Coordinator of the Parish Development Model program (PDM) at Operation Wealth Creation, praised Wendi for bringing banking services directly to households.

"Wendi is bringing banking to the hands of households without them having to move far away," he said.

When the government introduced the Parish Development Model, over 3.5 million households were in the subsistence economy, with approximately 6 million Ugandans lacking access to banking services.

At the time, numerous microfinance initiatives existed, but 16 million Ugandans remained financially excluded.

The objective of the Parish Development Model was to transform these households from subsistence to transactional economies, enabling them to sell products, transact, and save.

Wendi's arrival marked a significant milestone in this journey.

Initially, the government introduced traditional banking services, but this was met with challenges.

"We invited all banks, and 13 of them were involved in the exercise. However, we had very long queues in almost every branch, and some districts like Karamoja had no banking services at all,"Katende explained.

He noted that Wendi's mobile banking platform has bridged this gap.

"Wendi came on board, and we were able to bring banking services directly to people's hands through their phones."

Moses Godfrey Otim, District Commercial Officer in Bukedea, highlighted the rapid transformation that Wendi has brought to his community.

"Wendi has had an incredible impact on our community. In just three to four months, my district disbursed shs 16.2 billion to 16,725 people, most of whom had never been part of the traditional banking system," he said.

Kisiramu Twalib, chairman of Bugonza LC in Kaliro District, praised Wendi's efficiency, noting that families no longer have to endure long, tiring journeys to distant banks or spend hours in queues.

"No longer do families have to endure long, tiring journeys to distant banks or spend hours in queues. Instead, funds are sent directly to our mobile phones, accompanied by instant SMS confirmations," he said.

Wendi's extensive network of agents has also played a crucial role in expanding access to financial services.

With more than 6,000 active Wendi agents across Uganda, the platform is transforming financial access and providing individuals and businesses with a convenient and secure way to manage their finances.

According to Wendi’s statistics, a total of 9,286 PDM SACCOs received funding in 2024, with shs922.2 billion disbursed.

More than 886,000 members benefited, receiving shs882.4 billion.

In addition to expanding access to financial services, Wendi has also recognized the need for financial literacy. It partnered with CARE International in Uganda and rolled out training programs in Kabarole, Kasese, Gulu, Lira, Bushenyi and Nebbi districts, aimed at educating individuals on the importance of digital banking and how to use the platform securely.

Annet Tumwijukye, a mobilizer from Threads of Blessing in the Rwenzori Diocese, underscored the importance of e-banking for her group.

"E-banking is very important for our group, and we are going to have to embrace it," she said.

As digital banking continues to grow in popularity, Wendi has also emphasized the need for security awareness.

Gwigo Fred, a resident of Nakalanga, Kaliro District, urged Wendi users to safeguard their mobile phone PINs.

"Some of our people have had their funds stolen. My message to you all: use Wendi responsibly and protect your financial details," he said.

Wendi Mobile Wallet serves a diverse range of savings groups, both formal and informal, including village savings and loan associations (VSLAs), community-based organizations (CBOs), Kibiina groups, SACCOs, and family cash rounds. The platform provides users with the convenience to manage their transactions and access their funds with ease.