Factors influencing Parish Revolving Fund lead time under Uganda's Parish Development Model

Abstract Motivation Parish Revolving Fund (PRF) lead time is a critical bottleneck in Uganda's Parish Development Model (PDM), yet existing studies focus on access and repayment while neglecting the timing of disbursement. The study reconceptualize access to include its temporal dimension: receiving funds late is functionally equivalent to incomplete access. Purpose The study analyses the determinants of PRF lead time as a continuous‐duration outcome, examining how sociodemographic, institutional, and infrastructure factors shape processing delays across Uganda's regions. Approach and Methods Using nationally representative data from the EPRC‐PDM Household Survey (2024), covering 1,366 households (1,433,158 weighted), this study estimates a weighted gamma regression with a log link, supported by stepwise modelling, regional sub‐sample estimation, winsorization, clustered standard errors, alternative distributional specifications, and a Heckman two‐step correction for self‐selection into membership of Savings and Credit Cooperatives (SACCOs). Findings Lead time is significantly influenced by institutional capacity, payment modality, sociodemographic factors like gender and residence, and infrastructure. Digital channels reduce delays, with Wendi () and Mobile Money () showing strong national effects. Male‐headed households experience shorter lead times ( months), implying about a 47% gender gap at mean covariates. The Heckman inverse Mills ratio is statistically insignificant, indicating that SACCO selection does not bias the principal coefficients. Regional heterogeneity is strong across Central, Eastern, Northern, and Western Uganda. Policy Implications Policy should consolidate digital disbursement channels alongside investments in supporting infrastructure and financial literacy in underserved regions. Gender‐targeted interventions and region‐specific implementation strategies are essential.

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Publication Details

Journal
Development Policy Review
Published
2026-07-24
DOI
https://doi.org/10.1111/dpr.70089
Primary Topic
Microfinance and Financial Inclusion
Type
article
Field-Weighted Citation Impact
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article

Factors influencing Parish Revolving Fund lead time under Uganda's Parish Development Model

Swaibu Mbowa, Solomon Stephen Nuwagaba, Sheila Christine Nakkazi, Sandrah Nakabiri
Development Policy Review
Microfinance and Financial Inclusion
article

Factors influencing Parish Revolving Fund lead time under Uganda's Parish Development Model

Swaibu Mbowa, Solomon Stephen Nuwagaba, Sheila Christine Nakkazi, Sandrah Nakabiri
article en

Abstract

Abstract Motivation Parish Revolving Fund (PRF) lead time is a critical bottleneck in Uganda's Parish Development Model (PDM), yet existing studies focus on access and repayment while neglecting the timing of disbursement. The study reconceptualize access to include its temporal dimension: receiving funds late is functionally equivalent to incomplete access. Purpose The study analyses the determinants of PRF lead time as a continuous‐duration outcome, examining how sociodemographic, institutional, and infrastructure factors shape processing delays across Uganda's regions. Approach and Methods Using nationally representative data from the EPRC‐PDM Household Survey (2024), covering 1,366 households (1,433,158 weighted), this study estimates a weighted gamma regression with a log link, supported by stepwise modelling, regional sub‐sample estimation, winsorization, clustered standard errors, alternative distributional specifications, and a Heckman two‐step correction for self‐selection into membership of Savings and Credit Cooperatives (SACCOs). Findings Lead time is significantly influenced by institutional capacity, payment modality, sociodemographic factors like gender and residence, and infrastructure. Digital channels reduce delays, with Wendi () and Mobile Money () showing strong national effects. Male‐headed households experience shorter lead times ( months), implying about a 47% gender gap at mean covariates. The Heckman inverse Mills ratio is statistically insignificant, indicating that SACCO selection does not bias the principal coefficients. Regional heterogeneity is strong across Central, Eastern, Northern, and Western Uganda. Policy Implications Policy should consolidate digital disbursement channels alongside investments in supporting infrastructure and financial literacy in underserved regions. Gender‐targeted interventions and region‐specific implementation strategies are essential.

Development Policy ReviewVol. 44(5)
Ministry of Health (UG), Economic Policy Research Centre (UG), Makerere University (UG)
Quality Education
Openalex Percentile: Top 4%
Microfinance and Financial Inclusion
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