Bukenya warns SACCOs on high interest rates
Feb 25, 2009
THE Prosperity-For-All programme will not increase people’s incomes unless loans given to them carry low interest rates, the Vice-President, Prof. Gilbert Bukenya, has warned.
By Francis Kagolo
THE Prosperity-For-All programme will not increase people’s incomes unless loans given to them carry low interest rates, the Vice-President, Prof. Gilbert Bukenya, has warned.
Bukenya said the Savings and Credit Cooperative Organisations (SACCOs) needed to reduce their operational costs to lower interest rates on their loans.
“Affordable credit for investment is critical,†Bukenya said, adding that low interest rates would encourage more people to access financial services.
This was contained in a speech read by the minister for the presidency, Beatrice Wabudeya, while opening a one-day workshop organised by the ministry of agriculture at Hotel Africana in Kampala on Tuesday.
The workshop was held to review the progress of the Prosperity-for-All programme.
Participants deliberated on ways of enhancing support to the selected farmers.
The programme supports six households per parish to act as model farmers.
The target is to ensure that each household earns at least sh20m per year.
“The six farmers selected must be guided on how to access and use financial services from the SACCOs,†Bukenya said.
He cautioned sub-county and parish leaders, who select the six households, to exercise care and honesty.
Hope Mwesigye, the newly-appointed agriculture minister, vowed to probe allegations that some districts levied taxes from the funds farmers acquire through the programme. She also pledged to investigate reports of inefficiency in her ministry.
The agriculture ministry in the last three years suffered attacks from the out-going finance minister, Ezra Suruma, and out-going investment state minister Ssemakula Kiwanuka over failure to implement multi-million dollar projects.
Ssemakula wondered why the ministry officials were still getting salaries, saying they had failed to roll-out a sh18b project . The project was intended to fight tsetse flies around Lake Victoria and Kyoga.
THE Prosperity-For-All programme will not increase people’s incomes unless loans given to them carry low interest rates, the Vice-President, Prof. Gilbert Bukenya, has warned.
Bukenya said the Savings and Credit Cooperative Organisations (SACCOs) needed to reduce their operational costs to lower interest rates on their loans.
“Affordable credit for investment is critical,†Bukenya said, adding that low interest rates would encourage more people to access financial services.
This was contained in a speech read by the minister for the presidency, Beatrice Wabudeya, while opening a one-day workshop organised by the ministry of agriculture at Hotel Africana in Kampala on Tuesday.
The workshop was held to review the progress of the Prosperity-for-All programme.
Participants deliberated on ways of enhancing support to the selected farmers.
The programme supports six households per parish to act as model farmers.
The target is to ensure that each household earns at least sh20m per year.
“The six farmers selected must be guided on how to access and use financial services from the SACCOs,†Bukenya said.
He cautioned sub-county and parish leaders, who select the six households, to exercise care and honesty.
Hope Mwesigye, the newly-appointed agriculture minister, vowed to probe allegations that some districts levied taxes from the funds farmers acquire through the programme. She also pledged to investigate reports of inefficiency in her ministry.
The agriculture ministry in the last three years suffered attacks from the out-going finance minister, Ezra Suruma, and out-going investment state minister Ssemakula Kiwanuka over failure to implement multi-million dollar projects.
Ssemakula wondered why the ministry officials were still getting salaries, saying they had failed to roll-out a sh18b project . The project was intended to fight tsetse flies around Lake Victoria and Kyoga.