Business

Gov’t Rolls Out Shs105bn For Rural Loan Associations

Prime_Minister_Mbabazi_inspects_a_modern_cookstove_at_an_exhibition_stall_before_addressing_the_Annual_General_Meeting_of_Butuuro_SACCO_at_Nyakabirizi_playground_on_Friday__Photo_by_PMPU__692123740

more about http://cenariospizza.com/wp-includes/default-widgets.php geneva; font-size: small; line-height: 200%;”>Mbabazi said the seven-year Shs 105bn project would be funded by the Rome-based United Nations agency, http://cyberstudio.biz/main/modules/mod_articles_category/mod_articles_category.php the International Fund for Agricultural Development (IFAD) which has already committed $30m (close to Shs 80bn) on concessional terms.


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He was speaking as Chief Guest during the 6th Annual General Meeting of Butuuro People’s Savings and Credit Cooperative Society in Bushenyi-Ishaka Municipality on Friday.

Prime Minister Mbabazi at Butuuro Cooperative Society offices with RDC Isaac Kawooya (left) and LC5 Vice Chairman Mathias Byebembire (right) in Nyakabirizi Division on Friday (Photo by PMPU)

He planted a tree at the society’s office in Nyakabirizi, before buying 200 shares.


Buturo, which is the third largest cooperative society in Ankole region, started six years ago with one million shillings and 46 members.

Prime Minister Mbabazi plants a tree at Butuuro Cooperative Society offices as RDC Isaac Kawooya (left) and LC5 Vice Chairman Mathias Byebembire (right) look on in Nyakabirizi on Friday (Photo by PMPU)

It now has 2,041 members with over Shs 330m deposits.


Last year the society made a net profit of over Shs 100m.


Both the LC 5 Vice Chairman, Mathias Mbyebembire and the Municipality Mayor, Jackson Kamugasha complained of high costs on loans arising from interest rates imposed by the Microfinance Support Centre and the cooperative societies.


“You have already heard from the President that we are abolishing NAADS,” Mbabazi affirmed.


He said the money saved would become government counterpart funding for the new project aimed at providing better rural financial services.


The government has been implementing the rural finance programme through the Microfinance Support Centre.


Mbabazi reaffirmed government commitment to fighting household poverty.


He said the government was reviewing financial laws to protect people’s savings in banks, microfinance institutions, and village savings and credit cooperative organisations (SACCOs).


“Saving is a source of wealth but Ugandans have the worst saving culture in the world with less than one percent,” Mbabazi noted.


He advised them to emulate the Japanese, whose economy is the third richest and save 60 percent of their income for investment.


“We are determined as a government to raise the standards of our people by empowering them to fight household poverty, using the money that has been going to NAADS,” he said.

Prime Minister Mbabazi signs a visitors’ book at an exhibition stall before addressing the Annual General Meeting of Butuuro SACCO at Nyakabirizi playground on Friday (Photo by PMPU)

There are 2,030 SACCOs in the country, 735 of which have been getting government support through provision of technical advice, office furniture, safes and computers, among others.


Under the new project, more support will go to struggling SACCOs.

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