Sh17b loan for SACCOs available
Feb 24, 2009
The Islamic Development Bank (IDB) is to give a $10m (about sh17.9b) soft loan to the Government for lending to savings and credit cooperative organisations (SACCOs), an official of the bank has said.
By David Muwanga
The Islamic Development Bank (IDB) is to give a $10m (about sh17.9b) soft loan to the Government for lending to savings and credit cooperative organisations (SACCOs), an official of the bank has said.
“We are giving the money to the Government to pass it on to the Micro-finance Support centre, which will in turn lend it out to the SACCOs,†Dr. Issahaq Umar Iddrisu, the bank’s economist, said.
“The loan will be repayable in 30 years with a grace period of 10 years,†he said in an interview after the handing over of cheques for sh150m to six SACCOs, which had been approved by the Micro-finance Support Centre on Friday.
The Saccos included Kapeeka in Luweero that got sh10m, Makindye Sabagabo (sh50m) and Kasawo Namuganga organisation from Mukono (sh50m).
Others are Kikyusa (sh20m), Kazo Nabweru from Wakiso (sh10m) and Tuliwamu from Kamwokya (sh10m).
The cheques were handed over to the beneficiaries by the outgoing finance minister, Dr. Ezra Suruma, at the centre’s offices in Kololo, Kampala.
The function was also attended by the outgoing state ministers for micro finance Gen. Salim Saleh and Ruth Nankabirwa for defence, who is to replace Saleh.
Charles Byanyima, the centre’s executive director, said four other SACCOs would get loans in the first quarter of March.
“Ten institutions from Hoima are to get sh270m. “We have also identified 21 organisations in Arua, 43 in Iganga, 57 in Mbale, 29 in Kabale, 30 in Soroti, 15 in Masaka and 21 in Mbarara to give funds,†Byanyima said.
Meanwhile, over sh350m has been disbursed to SACCOs in Apac, reports Patrick Opio. Cyprian Oleke, the district commercial officer, said sh353.9m had been disbursed to SACCOs throughout the district this financial year.
He noted that 8,165 people were in cooporative societies, 2,747 of whom were males and 5418 females.
He said Anekapiri SACCO had received the highest disbursement of sh104m, while Chawente SACCO members led in savings with over sh158m.
He said all SACCOs had paid a share capital of over sh186m.
Oleke added that the formation of SACCOs had brought banking services nearer to the people, which would promote petty businesses and agriculture.
“We hope that with easy access to financial services, farming and other businesses will be promoted,†Oleke said.
He, however, said there was a problem as some clients were defrauding the SACCOs by getting multiple loans from various groups, adding that others had a negative attitude towards saving.
The Islamic Development Bank (IDB) is to give a $10m (about sh17.9b) soft loan to the Government for lending to savings and credit cooperative organisations (SACCOs), an official of the bank has said.
“We are giving the money to the Government to pass it on to the Micro-finance Support centre, which will in turn lend it out to the SACCOs,†Dr. Issahaq Umar Iddrisu, the bank’s economist, said.
“The loan will be repayable in 30 years with a grace period of 10 years,†he said in an interview after the handing over of cheques for sh150m to six SACCOs, which had been approved by the Micro-finance Support Centre on Friday.
The Saccos included Kapeeka in Luweero that got sh10m, Makindye Sabagabo (sh50m) and Kasawo Namuganga organisation from Mukono (sh50m).
Others are Kikyusa (sh20m), Kazo Nabweru from Wakiso (sh10m) and Tuliwamu from Kamwokya (sh10m).
The cheques were handed over to the beneficiaries by the outgoing finance minister, Dr. Ezra Suruma, at the centre’s offices in Kololo, Kampala.
The function was also attended by the outgoing state ministers for micro finance Gen. Salim Saleh and Ruth Nankabirwa for defence, who is to replace Saleh.
Charles Byanyima, the centre’s executive director, said four other SACCOs would get loans in the first quarter of March.
“Ten institutions from Hoima are to get sh270m. “We have also identified 21 organisations in Arua, 43 in Iganga, 57 in Mbale, 29 in Kabale, 30 in Soroti, 15 in Masaka and 21 in Mbarara to give funds,†Byanyima said.
Meanwhile, over sh350m has been disbursed to SACCOs in Apac, reports Patrick Opio. Cyprian Oleke, the district commercial officer, said sh353.9m had been disbursed to SACCOs throughout the district this financial year.
He noted that 8,165 people were in cooporative societies, 2,747 of whom were males and 5418 females.
He said Anekapiri SACCO had received the highest disbursement of sh104m, while Chawente SACCO members led in savings with over sh158m.
He said all SACCOs had paid a share capital of over sh186m.
Oleke added that the formation of SACCOs had brought banking services nearer to the people, which would promote petty businesses and agriculture.
“We hope that with easy access to financial services, farming and other businesses will be promoted,†Oleke said.
He, however, said there was a problem as some clients were defrauding the SACCOs by getting multiple loans from various groups, adding that others had a negative attitude towards saving.