Saleh unveils Bonna Bagaggawale strategy
Dec 01, 2006
THE Government has developed a rural finance strategy aimed at creating a platform to deliver microfinance services in every parish countrywide.
By Sylvia Juuko
THE Government has developed a rural finance strategy aimed at creating a platform to deliver microfinance services in every parish countrywide.
Microfinance state minister Gen. Caleb akandwanaho a.k.a. Salim Saleh said the key components of the strategy include formation of savings and credit cooperative organisations (SACCOs), strengthening the existing but weak SACCOs and support towards expansion of services of strong SACCOs.
“The objective of the strategy is to provide adequate regulation and supervision of SACCOs so as to safeguard members’ deposits and further enhance confidence in the locally managed savings systems,†Saleh said in a statement on November 29.
He said the strategy would ensure accessibility of affordable loans by households.
He said while the implementation of the strategy will be based at the sub-county level, the situation in urban areas was unique, thus needing a different approach.
“Our plan is to address the creation and building of SACCOS in the urban areas at parish level in each division. In Kampala district we have planned to support communities at the parish level in each of the eight constituencies to start a model SACCO,†Saleh said.
On Thursday, Saleh succumbed to pressure from the NRM MPs and cancelled a sh200m funding to Lubaga North development Association credit scheme founded by opposition MP Beti Kamya.
Saleh said the plan in Kampala would enable the multitude of SACCOS in the parishes to subscribe to the new community institution.
“To eliminate the challenge/scramble for support by the so many existing SACCOs/interest groups, a one unifying and new SACCO has been preferred,†he said.
Regarding rural sub-counties, Saleh said, “The support for roll out programme on SACCO formation, consolidation and expansion will be subjected to the criterion which emphasises coverage and availability of financial services and the extent of poverty. The roll out programme takes immediate effect.â€
THE Government has developed a rural finance strategy aimed at creating a platform to deliver microfinance services in every parish countrywide.
Microfinance state minister Gen. Caleb akandwanaho a.k.a. Salim Saleh said the key components of the strategy include formation of savings and credit cooperative organisations (SACCOs), strengthening the existing but weak SACCOs and support towards expansion of services of strong SACCOs.
“The objective of the strategy is to provide adequate regulation and supervision of SACCOs so as to safeguard members’ deposits and further enhance confidence in the locally managed savings systems,†Saleh said in a statement on November 29.
He said the strategy would ensure accessibility of affordable loans by households.
He said while the implementation of the strategy will be based at the sub-county level, the situation in urban areas was unique, thus needing a different approach.
“Our plan is to address the creation and building of SACCOS in the urban areas at parish level in each division. In Kampala district we have planned to support communities at the parish level in each of the eight constituencies to start a model SACCO,†Saleh said.
On Thursday, Saleh succumbed to pressure from the NRM MPs and cancelled a sh200m funding to Lubaga North development Association credit scheme founded by opposition MP Beti Kamya.
Saleh said the plan in Kampala would enable the multitude of SACCOS in the parishes to subscribe to the new community institution.
“To eliminate the challenge/scramble for support by the so many existing SACCOs/interest groups, a one unifying and new SACCO has been preferred,†he said.
Regarding rural sub-counties, Saleh said, “The support for roll out programme on SACCO formation, consolidation and expansion will be subjected to the criterion which emphasises coverage and availability of financial services and the extent of poverty. The roll out programme takes immediate effect.â€