We have just published a report that presents the findings from the Kumwe Recoverable Grant Pilot implemented by the Uganda Response Innovation Lab (U-RIL) at Save the Children Uganda between October 2024 and June 2026. The pilot provided recoverable grants totaling Ugx 72.4 million to four social enterprises, including Ddokolo Distributors, Atom Uganda Limited, SMILE Nutraceuticals Limited, Youth for Life Tree Planting Limited, and WaterKit Limited to strengthen enterprise sustainability while improving outcomes for children, women, and vulnerable communities.
The evaluation used the OECD-DAC evaluation criteria: relevance, effectiveness, efficiency, impact, and sustainability of the recoverable grant model. Evidence was drawn from enterprise interviews, customer and user surveys, programme documentation, repayment records, UNBS audit reports, and ecosystem-level learning generated through the innovative financing convener.
Relevance
The evaluation concludes that the recoverable grant model was highly relevant to the needs of both enterprises and the communities they serve. The enterprises continued to address priority challenges in child nutrition, malaria prevention, food security, and access to safe water. Customer feedback confirmed strong product-community fit, with all surveyed customers reporting that the products and services met their household needs and the majority reporting improvements in wellbeing and reduced household expenditure.
Performance against key indicators
The pilot was effective in strengthening enterprise performance and expanding social reach. Collectively, the four enterprises reached 12,023 children and 918 women with products and services addressing critical health, nutrition, and livelihood needs. Average monthly revenues increased from Ugx. 10,500,000 to Ugx. 24,725,000, and average profits increased from Ugx. 2,388,400 to Ugx. 4,175,950, while employment expanded substantially across the enterprise portfolio. The enterprises also increased their market presence from 10 to 18 locations and established five new strategic partnerships.
Non-financial support and capacity strengthening
Beyond financial performance, the evaluation found that the combination of flexible capital, mentorship, technical assistance, and ecosystem engagement was a critical success factor. Support in areas such as MEAL systems, branding and packaging, business communication, intellectual property management, and investor readiness strengthened enterprise capacity and professionalism. Several enterprise leaders reported that participation in Kumwe Hub enabled them to access NGO and institutional markets for the first time, creating opportunities that extended beyond traditional retail channels.
Community and household level outcomes
Customer and user results showed meaningful social outcomes. Households reported improved access to nutritious food products, reduced expenditure on health and household essentials, improved access to safe water solutions, and reduced exposure to malaria.
Challenges and lessons
The evaluation also identified important lessons for future implementation. Enterprise performance was influenced by factors beyond access to finance, including regulatory requirements, partnerships, market shocks, and seasonal business fluctuations. WaterKit’s implementation was constrained by delays in formalising its partnership agreement with the Northern Umbrella, while SMILE experienced significant financial pressure due to office relocation costs and tax-related penalties. The evaluation further found that regulatory compliance processes, particularly UNBS certification, required greater investment than initially anticipated but ultimately contributed to improved product quality, enterprise formalisation, and market readiness.
Repayment performance
By the endline, 39% of the recoverable grant value had been repaid. The evaluation finds evidence of growing financial discipline among participating enterprises and considers the repayment performance reasonable given the maturity of the enterprises and the operational challenges encountered during implementation.
Conclusion
Overall, the evaluation concludes that the Kumwe Recoverable grant pilot represents a promising and effective approach to supporting locally led innovation. The evidence demonstrates that flexible financing, when combined with technical assistance and ecosystem support, can strengthen social enterprises, expand their social reach, and generate positive outcomes for children, women, and vulnerable communities. The evaluation therefore recommends continued investment in the model, alongside strengthened ecosystem coordination, structured enterprise growth pathways, and enhanced support for enterprises navigating regulatory and market barriers.
Recommendations
Maintaining a reserve pipeline of pre-qualified enterprises to ensure programme continuity when selected enterprises fail due diligence or withdraw.
Strengthening pre-grant assessments of critical partnerships and operational dependencies to reduce implementation risks.
Providing dedicated support for certification and compliance-related investments, particularly where market access depends on regulatory approval.
Adopting phased grant disbursements linked to agreed milestones and extending implementation timelines to better align financing with enterprise growth trajectories.