Prime Minister Dr Ruhakana Rugunda has handed over dummy cheques totaling to One billion shillings from the Microfinance Support Centre Ltd to savings and credit cooperative organisations (SACCOs) in Kabale Zone.
Some of the beneficiaries included Lyamujungu cooperative financial services Ltd, Rukiga savings and credit scheme and Buyanja cooperative savings and credit society Ltd who received 400 million, 350 million and 200 million shillings respectively.
(L-R) MSC Board Chair Bagyenda,PM Rugunda & MoS Banyenzaki hand over dummy cheque on Saturday in Kabale (Photo by PMPU)
Delivering the cheques on Saturday, at White Horse Inn in Kabale, Rugunda said Government recognizes the importance of financing rural enterprises in enhancing productivity and the overall reduction of poverty.
“On behalf of Government, I wish to pledge Government’s continued commitment in supporting the financial services sector and particularly Microfinance Support Centre Ltd (MSC) that has exhibited the competence and capacity to deliver on this program,” said the Premier.
He said Government will ensure that MSC has the required resources to provide service to the people of Uganda and also achieve its strategic goal of increasing productivity, incomes and employment opportunities through provision of affordable financial services.
PM Rugunda & Chair MSC board Bagyenda hand over dummy cheque on Saturday in Kabale (Photo by PMPU)
He noted that a lot of the financial support had gone to support agriculture especially in tea, coffee and the dairy sectors in Kigezi region adding that these interventions do not only improve household incomes but also ensure food security in the homesteads.
“The necessary infrastructure has been put in place. Roads have been done and electricity extended across the country. With the prevailing security, all Ugandans should take advantage of these available opportunities to improve their lives” Rugunda advised.
Rugunda applauded Lyamujungu cooperative financial services limited and other SACCOs which were exemplary in promoting the cooperative movement in the country.
He assured the SACCOs leadership that government was in the process of formalising the directive by President Yoweri Museveni to abolish taxes levied on SACCOs.
Rugunda also handed over certificates of recognition for exemplary performance to 14 institutions that are good partners of the Microfinance support centre Ltd in increasing access to microfinance services.
The Minister of State for Economic Monitoring, Henry Banyenzaki who represented the Minister of Finance applauded Microfinance support centre Ltd for helping Ugandans to access affordable credit. Banyenzaki said fraud and embezzlement was rampant and many SACCOs had collapsed because of theft of people’s savings. He said a law to regulate the activities of SACCOs was in the offing, adding that when enacted, it will safe guard people’s savings and also punish the culprits.
The Chairperson Board of Directors Microfinance Support Centre Ltd, Justine Bagyenda said SACCOs had performed well and were playing key role in improving household incomes.
She said the Microfinance Support Centre Ltd had so far disbursed 201 billion shillings to SACCOs and small and medium enterprises (SMEs) adding that they had a strategic plan to increase coverage and lift more people out of poverty.