The microfinance sector in Uganda grew rapidly between 1998 and 2003, thanks to funding, stakeholder support, skilled human resources, and collaboration. By the end of 2003, over 1,500 microfinance institutions were serving many small savers and borrowers. Effective microfinance in Uganda was driven by a shared vision, skilled resources, and collaboration. However, challenges like the need for a rural finance strategy, government expectations, political pressure, training, and savings protection for the poor must be addressed for continued success.