Grameen Foundation : Where we work : Sub-Saharan Africa : Uganda : Village Phone Uganda
Village Phone Uganda
In 2003, Grameen Foundation and MTN Uganda established a joint venture company, MTN VillagePhone, to bring the Village Phone program to Uganda. Spearheaded by the Grameen Technology Center, this was the first successful replication of the program that was first pioneered in Bangladesh by Grameen Telecom and Grameen Bank. Its initial goal was to establish 5,000 new cell phone businesses in five years. In just three years, MTN VillagePhone surpassed that goal, establishing over 6,700 new businesses and growing at a rate of more than 150 businesses per month.
The impact of Village Phone in Uganda’s rural communities has been significant. On average, the Village Phone Operators (VPOs) sell five times more airtime than that used by a typical urban customer on his personal mobile phone – a strong signal of the power of “shared access”. The VPOs themselves have been able to educate their children, access private healthcare and grow their businesses. Some have even expanded into other businesses which help to create more jobs within their communities.
The initiative’s success has also spread beyond Uganda’s borders. Based on the experiences in Bangladesh and Uganda, in 2005, Grameen Foundation released the Village Phone Replication Manual, a step-by-step guide on establishing Village Phone programs. The manual is available for download and has already generated similar initatives in several countries.
As part of our initial agreement, in September 2006, Grameen Foundation sold its stake in MTN VillagePhone to MTN Uganda. The company is now completely locally-owned and managed and continues to give increasing numbers of rural Ugandans access to affordable communications and new economic opportunities. Grameen Foundation will continue to build on the work of the past several years in Uganda. We are testing new uses of the Village Phone infrastructure, based on the needs of local micro-entrepreneurs, with programs such as Application Laboratory. We also continue to work with the MFIs who are integral to bringing information and communications technologies to rural communities.
As of December 2007, there are over 10,000 Village Phone businesses.
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Village Phone Uganda success stories >
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Grameen Foundation : Where we work : Sub-Saharan Africa : Uganda : Village Phone Uganda
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start businesses and escape poverty. Our global network of 55 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 34 million people in 24 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28.
+1-202-628-3560 www.grameenfoundation.org
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