President Yoweri Kaguta Museveni has a total of Shs11.1 billion in SACCOs of mechanics in the five divisions of Kampala City, Masters of Ceremonies (MCs) in the 18 zonal regions of the country and Industrial Skilling Hub beneficiaries in 176 administrative units that include districts, cities and municipalities. The President handed over the funds today to the representatives of the respective SACCOs during a meeting at State Lodge, Nakasero.
The Skilling Hubs received Shs8.8 billion with each SACCO entitled to Shs50 million, the Mechanics SACCOs received Shs500 million with each taking Shs100 million and the MCs SACCOs received Shs1.8 billion with each of the 18 groups getting Shs100 million.
Handing over the funds, President Museveni explained that the money is meant to benefit ordinary Ugandans and it should be at a very affordable interest rate. “The loans the beneficiaries receive must be at 6 percent, not more than that per year and this should be put in a legal document. Anybody who doesn’t do it goes to jail,” he warned.
“The reason I say 6 percent is because the inflation is at around 3 percent. This will help us to keep our money in check. I give you Shs1 million, then after a whole year, you return Shs1.06 million. The ones for Parish Development Model (PDM), we give them two years so that they can first harvest.”
President Museveni further assured beneficiaries that once they utilise the funds well, the government will inject more money into their SACCOs. “For the PDM, we have been insisting on Shs1 million, but with you, you must sit with Barekye and see how much you can borrow. For instance, we said for fishermen, the Shs1 million is not enough so we are going to give them a special budget because the equipment they use is expensive,” he said. “Write a special document on how you are going to use that money, then I sign.”
The State House Comptroller, Ms. Jane Barekye revealed that such project is part of President Museveni’s broader initiative to economically empower ordinary citizens such as market vendors, ghetto youth, MCs, mechanics, among others. She also clarified that on the part of the Skilling Hubs, Kampala is not among the current beneficiaries because they are still registering their SACCOs.
Ms. Barekye also explained that the Skilling Hub SACCOs’ funds will benefit only those who have finished training under the different hubs whereby they will be eligible to borrow start-up capital and pay back after one year.
The meeting was also attended by the Special Presidential Assistant on Press and Mobilization Haji Faruk Kirunda, who is coordinating the MCs SACCOs; Director of Presidential Projects and Industrial Hubs, Eng. Raymond Kamugisha, handling the Skilling Hub Beneficiaries SACCOs; Special Presidential Assistant on Service delivery, Mr. Yiga Kisakyamukama, handling the Kampala Garage SACCOS; chairpersons of the Skilling hubs around the country and representatives of the MCs led by the Chairperson of Aboogezi B’okumikolo United Savings Cooperative, Mr. Ssegujja Fred.