Govt seeks sh800b loan to fight rural poverty
Jun 30, 2007
The Government wants Parliament to approve several loan requests aimed at improving rural livelihood and boosting the agriculture sector.
By Paul Kiwuuwa
The Government wants Parliament to approve several loan requests aimed at improving rural livelihood and boosting the agriculture sector.
They include a $27.440m (sh46.6b) loan from the International Fund for Agriculture Development (IFAD) that will finance the Districts Livelihoods Support Programme, another IFAD loan of $15m (sh255b) for the Community Agriculture Programme and a $30m (sh510b) from African Development Fund.
Presenting the request to the committee on national economy on Thursday, micro-finance minister Gen. Caleb Akandwanaho said the loans would be managed by the local government ministry through local councils.
“The objective is to reduce poverty and hunger in the rural communities, to increase productivity, raise household incomes, protect natural resources, improve rural infrastructure and deepen local democratisation,†Akandwanaho said.
He added that the Districts Livelihoods Support Programme would run from 2007 to 2012 and was aimed at improving road networks, water provision and bettering sanitation in Masindi, Buliisa, Bundibugyo and Kamwenge. The other districts include Kyenjojo, Mayuge, Bugiri, Busia, Yumbe, Apac, Oyam, Luweero and Nakaseke districts.
Asked whether the loans had strings attached, local government permanent secretary Vincent Ssekkono said: “The donors will oversee implementation but will not participate in real utilisation of the funds at the local level.
“Officials of the local government ministry and the local community will do the accountability.â€
Sekkono told the MPs that the loans were reflected in the 2007/08 national budget recently read by finance minister Dr. Ezra Suruma.
Local government state minister Hope Mwesigye said her ministry had opened two special accounts in Bank of Uganda to receive the funds.
The Government wants Parliament to approve several loan requests aimed at improving rural livelihood and boosting the agriculture sector.
They include a $27.440m (sh46.6b) loan from the International Fund for Agriculture Development (IFAD) that will finance the Districts Livelihoods Support Programme, another IFAD loan of $15m (sh255b) for the Community Agriculture Programme and a $30m (sh510b) from African Development Fund.
Presenting the request to the committee on national economy on Thursday, micro-finance minister Gen. Caleb Akandwanaho said the loans would be managed by the local government ministry through local councils.
“The objective is to reduce poverty and hunger in the rural communities, to increase productivity, raise household incomes, protect natural resources, improve rural infrastructure and deepen local democratisation,†Akandwanaho said.
He added that the Districts Livelihoods Support Programme would run from 2007 to 2012 and was aimed at improving road networks, water provision and bettering sanitation in Masindi, Buliisa, Bundibugyo and Kamwenge. The other districts include Kyenjojo, Mayuge, Bugiri, Busia, Yumbe, Apac, Oyam, Luweero and Nakaseke districts.
Asked whether the loans had strings attached, local government permanent secretary Vincent Ssekkono said: “The donors will oversee implementation but will not participate in real utilisation of the funds at the local level.
“Officials of the local government ministry and the local community will do the accountability.â€
Sekkono told the MPs that the loans were reflected in the 2007/08 national budget recently read by finance minister Dr. Ezra Suruma.
Local government state minister Hope Mwesigye said her ministry had opened two special accounts in Bank of Uganda to receive the funds.