Uganda strengthens rural livelihoods to help prevent child labour in coffee-growing communities

MBALE, KENYA (ILO News) – For many families in Uganda's coffee-growing communities, limited and unpredictable incomes make it difficult to cover school fees, healthcare and other basic household needs. When financial shocks occur, children are often drawn into work to help their families cope, increasing their risk of child labour.

To help address these underlying vulnerabilities, the ILO through the ACCEL Africa project, is strengthening Village Savings and Loan Associations (VSLAs) by supporting members to diversify their livelihoods and build more resilient household economies.

Field monitoring visits conducted from 22 to 26 June 2025 in Uganda's greater Mbale region highlighted the progress made by beneficiary groups supported by the ACCEL Africa implementing partner: Uganda Women's Efforts to Save Orphans (UWESO). The visits showed how stronger savings groups, improved access to markets and diversified income-generating activities are helping farming households increase their incomes and better meet their daily needs.

© ILO/Isabel Atugonza

© ILO/Isabel Atugonza

The project has connected VSLAs with a network of public and private partners, enabling members to establish sustainable enterprises and adopt improved agricultural practices. Demonstration farms have become practical learning centres where farmers acquire climate-smart farming techniques while exploring new income-generating opportunities beyond coffee production.

In Mbale District, members of Mudonyi VSLA partnered with Christ the King Agro Input Dealers and suppliers of organic fertilizers to establish a demonstration farm promoting backyard vegetable production. The initiative is improving household food security while enabling members to earn additional income through the sale of surplus vegetables. Members have also diversified into poultry farming and other small businesses, creating new and more stable sources of household income.

In neighbouring Bulambuli District, Ganzo VSLA has expanded opportunities by investing in coffee value addition. The group established a coffee shop where members process part of their coffee harvest into ready-to-drink coffee while marketing the remaining produce through the business. The enterprise generates additional income that is reinvested into the group's savings and lending activities, strengthening financial services for members and supporting the long-term sustainability of the association.

These initiatives demonstrate how Village Savings and Loan Associations can evolve beyond savings groups into community-based enterprises that strengthen livelihoods and create new economic opportunities. By increasing household incomes and improving financial resilience, families are better equipped to meet essential needs, invest in their children's education and cope with unexpected shocks without relying on child labour as a survival strategy.

The ACCEL Africa project works with communities, cooperatives and local partners to address the root causes of child labour in Uganda's coffee sector. By strengthening livelihoods, expanding economic opportunities and improving access to financial services, the project is helping coffee-growing households build more resilient futures while supporting Uganda's efforts to eliminate child labour and promote decent work.