Business
Government to support small enterprisesPublish Date: May 21, 2014
Government to support small enterprises
  • mail
  • img
The coordinator of ‘Gwolabyeko ye Mwana’ Saving and Loan Society, Rev James Golooba explaining the importance of saving and borrowing during a meeting. By Ronnie Kijjambu
newvision

By Jeff Andrew Lule        

Government has embarked on a new move to support small medium enterprises to boost people’s household incomes as a way of promoting development and fight crime.
 
The program is to begin with Central region in Wakiso, Mpigi and Luwero districts. 
 
Under the new initiative, beneficiaries must  subscribe to a Savings And Credit Co-operative (SACCO) of not more than 30 people with defined projects. 
 
The funds are to be channelled through “Gwewalabyeko Yemwana” SACCO as an umbrella body through which other groups will be accessing funds. 
 
 The DPC for Kasangati, Patrick Kawalya addressing the congregation during a meeting. Photo by Ronnie Kijjambu      

 
About sh1bn is to be injected to benefit about 1,000 people.

Speaking during a training session on the new scheme in Kasangagti , Wakiso district, on Thursday, the facilitator of the program, Rev. James Goloba, said government decided to come up the new scheme following the collapse of other programs where funds were allegedly swindled without reaching the beneficiaries. 
 
“That’s why "entandikwa" program failed. Funds used to disappear before reaching the beneficiaries. Now the President wants funds to be channelled directly to the common person,” he said.
 
 “We are responsible for giving out loans, monitoring the projects and making sure money is paid back to benefit others.”
 The loans are interest free, with a 10% saving in relation to their loans individually. They can decide when to withdraw their savings anytime,” he said.
 
Goloba said the 10% saving is aimed at promoting the culture of saving among people. He said they are also going to open up small banks in areas of operation to ease services. 
 
The program is also aimed at fighting crime through creating employment for the unemployed youth.
 
“We want the youth to stop gambling and avoid false hopes which have pushed them into stealing and other weird characters. We are going to train them in business enterprise skills to start meaningful projects,” he added.
 
 The coordinator of ‘Gwolabyeko ye Mwana’ Saving and Loan Society, Rev James Golooba addressing the congregation. Photo by Ronnie Kijjambu                                              
 
The Police Commander, Kasangati Police, Patrick Kawalya asked people especially the youth to embraced the program.
“Development works closely with peace and security. We have many youth in crime due to lack of employment and I think this is a good idea to shape our people,” he added.
 
Aaron Twinomugisha 26, a resident in the area, said the program was going to help him boost his business. 
 
“I just need more capital to expand my mash room business. I think this scheme is going to help if people join groups,” he said.
Michael Kule, a boda boda rider, said the scheme is to save them from high interest bank loans. 
 
“Many people’s property have been confiscated by banks for failure of pay back on time. Others disappear and abandon their families in fear of being arrested,” he added. 
 
 RELATED STORIES
 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
West Nile grid extension on schedule
THE West Nile power grid extension from Nyagak Hydro plant to the rest of the districts is moving steadily with over 46% of the work on the sh44 billion project...
Gov’t allocates sh10b for tarmacking roads
GOVERNMENT has earmarked sh10b for the tarmacking of roads intended to enhance commerce, reduce dust and facilitate mobility in 26 town councils...
Local govt asked to participate in alternative energy planning
Ministry of energy officials and experts from GIZ have urged local government leaders to participate in developing affordable and efficient sources of energy at district level to light up districts instead of the long waiting for the central government to do for them what they can do themselves....
Central Bank begins financial literacy campaign in schools
Bank of Uganda has started a campaign to boost people’s understanding of economic issues affecting them so that they can identify opportunities to exploit....
Shipping firm chief accountant charged in MTN $3.8m fraud
The chief finance officer of Three Ways Shipping Company has been charged with embezzling $3.8m (about sh10b), belonging to telecom company MTN....
Kabila fires CEO of state miner Gecamines for "gross negligence"
Democratic Republic of Congo's President Joseph Kabila has fired the chief executive of the country's state mining company Gecamines for "gross negligence", according to a presidential decree read out on the state television channel....
Should private schools and institutions be given tax exemption?
Yes
No
Can't Say
follow us
subscribe to our news letter