151 Billion Shs so far given to 6,051 Complaint PDM SACCOs Countrywide, Minister Kasolo reveals ahead of 1st Annual Microfinance and Savings Groups Conference in Uganda
Ministry of finance, planning and economic development (MoFPED) has so far mobilized Shs72 billion as savings from the Presidential Initiative on Job and Wealth Creation (EMYOOGA) which was created intending to bring together groups of people engaged in similar enterprises to enable them to access affordable credit and save jointly.
KAMPALA - While launching the First Annual Microfinance and Savings Groups Conference, Haruna Kyeyune Kasolo, the State Minister for Finance Planning and Economic Development in charge of microfinance, noted that to date, there are funds for lending to SACCO members to do projects and activities along the agricultural value chain at an affordable interest rate of 6% P.A.
Hon. Kasolo revealed that by 11th November 2022, his ministry had disbursed 151 Billion shs to bank accounts of 6,051 complaint Parish Development Model SACCOs countrywide with each PDN SACCO receiving 25 Million shs out of the 100 Million they are supposed to receive for development projects every Financial Year.
“Another 2,664 PDM SACCOs are already in process to receive funds on the accounts before 30th November 2022,” he explained.
Meanwhile, the Ministry of finance, planning and economic development (MoFPED) has so far mobilized Shs72 billion as savings from the Presidential Initiative on Job and Wealth Creation (EMYOOGA) which was created intending to bring together groups of people engaged in similar enterprises to enable them to access affordable credit and save jointly.
The money so far collected was mobilized from 205,710 parish-based associations and 6,664 SACCOs representing 48.4% women, 30% youth and 2.56% PWDs as beneficiaries.
Over 6,664 SACCOs have been formed at the constituency level and financed with Shs30million as revolving funds.
He said with the upcoming microfinance and savings conference, they intend to promote the adoption of digital technologies in the microfinance sector and savings groups through sharing of practical experiences and case studies.
He noted that the microfinance industry in Uganda is one of the most vibrant and well-known in terms of providing rich experiences for cross-learning and lesson adaptation by government, agencies, and development partners.
“This conference, therefore, comes in real-time when we need to reflect and focus on key achievements, challenges and opportunities for the development of the industry,” he said.
Highlighting the status of the Project for Financial Inclusion in Rural Areas (PROFIRA), Kasolo said 14,500 new Community Savings and Credit Groups with 432,000 members have been set up.
He added that out of these groups, 285,000 and 298,000 members have been trained in financial literacy and business skills respectively, as well as strengthened 3,250 already existing community savings comprising of 102,000 members.
“PROFIRA has also supported 310 SACCOs through training and capacity building to enable them to become sound and financially sustainable organizations. In addition, it has provided capacity-building support to 120 District Commercial Officers to become UCCK-certified Trainers of Trainers in Financial Literacy and Cooperative Education,” he added.
Meanwhile, Prof. Waswa Balunywa Principal MUBS revealed that the Microfinance sector is the biggest sector in Uganda. “80% of the population live in the rural areas, 70% of the population are in Agriculture and the NRM government is committed to social, economic transformation of the ordinary Ugandans”, he noted. Through this conference, many will get more knowledge about Microfinance and savings groups.
The First Annual Microfinance and Savings Groups Conference organized by the Ministry of Finance, Planning, and Economic Development in partnership with key players in the Microfinance industry like Makerere University Business School among others and will be held on 29th and 30th November 2022 at Hotel Africana Kampala, under the theme “Drivers for sustainable Microfinance and Savings Groups in Uganda”.