With the aim of increasing household incomes and creating employment opportunities, the Government of Uganda has earmarked Ushs 260 billion to fund organized groups formed around 18 specialized enterprises in the country.
In 2019, President Yoweri Museveni initiated a special program dubbed, “Presidential initiative on wealth and job creation”, to address the challenge of limited access to finance by the poor.
Under the initiative, parish-based associations (Emyooga SACCOS) have been formed across the country, and each constituency will receive Ushs 560 million from government as a grant.
According to the Live news Chartroom, the initiative is part f the broader NRM principle of socio-economic transformation which Government has committed its self to transform 68 per cent of the country’s homesteads which are currently in subsistence, to market orientation.
The State Minister for Microfinance , Haruna Kasolo said the program is fully funded by the Government of Uganda, and is implemented by the Microfinance Support Center Ltd.
“A total number of 190,710 Emyooga parish based associations has been mobilized across the country with 70,133 of them already validated. Validation is aimed at assessing actual existence, legal status and leadership structures of the groups to minimize the risk of funding non-existing ghost groups,” said Kasolo.
He added that the number of registered associations was likely to increase since many of them were in advance stages of the registration processes.
The minister noted that there had been an upsurge in saving among a number of associations across the country in line with the objectives of the Emyooga initiative.
During the validation exercise of the savings associations, it was established that in different areas from Mukono to Mutukula, Soroti, Serere, Jinja, Kasanda and Masaka, Iganga, Kaliro, Mbale, Lira and Arua a number of savings associations that were set up within the past eight months had embraced the culture of savings,” he observed.
Saving is required for the savings associations to access funding under the Emyooga initiative.
A comprehensive guide for training Emyooga SACCO leaders was developed and leaders of SACCOS have been provided with technical assistance in basic financial and records management, SACCO governance, savings, mobilization, among others.
The Minister says this will help equip the leaders with skills and competencies to manage the SACCOs in an efficient and sustainable manner.
“As at 25 November 2020, the Microfinance Support Center had disbursed Ushs 20 billion to 660 constituency-based SACCOs in the districts of Budaka, Bukwo, Kapchorwa, Kitugum, Kiboga, Busia, Alebtong, Karungu, Kaberamaido, Kalaki, Iganga, Bukomansimbi, Serere and Bukedea,” Kasolo said.
He added that discussions were still ongoing on how to manage the scheme for teachers in private schools.
“After the discussions are concluded, the Ministry of Education will issue a communication on the procedure for the teachers in private schools to access this support. In the meantime, the organized teachers’ groups and SACCOs can still access funding but under the MSC credit funds,” the Minister said.
