Barclays is helping 5,000 people in Katine, Uganda access savings and loans for the first time.

With the help of charity Care Uganda, Barclays is working with Village Savings and Loans Associations (VSLAs). VSLAs are self-selected groups which pool their money into a fund, enabling members to borrow. The initiative will also help educate the villagers in basic business skills and financial literacy.

"Katine: it starts with a village"

The initiative is part of Barclays three-year project, 'Katine: it starts with a village', in partnership with the African Medical and Research Foundation (AMREF) and The Guardian newspaper in the UK. Barclays is donating £1.5m, including £1m matching funds for Guardian reader donations. Since October 2007 Guardian readers have raised £787,481 for the project.

Susie Hares, Barclays Global Community Partnerships Manager, said: "The Katine project is addressing the major causes of poverty in a rural African community in a targeted and integrated manner. Barclays is adding real value beyond the donation through the design and delivery of this innovative financial inclusion component."

William Derban, Barclays Senior Financial Inclusion Manager, added: "This is the first time Barclays Global Community Investment and Financial Inclusion teams have worked together to target a previously un-accessed group. The aim is to make a positive impact on the lives of the people of Katine and at the same time develop a sustainable commercial model of rural banking."

Since October 2007, the Katine project has provided water sources to three villages and five primary schools, refurbished two health centres and increased immunisation coverage to remote villages. A total of 66 health teams – one in every village in Katine – have been trained to identify danger signs, such as malnutrition and malaria, and to refer people to the nearest health centre.