Sh338m set aside for training SMEs owners

                          

A total of sh338m has been earmarked to facilitate the training of the business community in the country in financial literacy. 

 

The private sector foundation, Centenary Bank and Agribusiness initiative (aBi) announced on Tuesday that the training is intended mainly for the small scale business persons and farmers.

 

Unveiling the second phase of the bank’s financial literacy training programme in Kampala, Fabian Kasi the Managing Director Centenary Bank said that the programme was designed to benefit at least 10million business people operating small and medium Enterprises (SMEs) in Uganda.

 

“At Centenary Bank, we know that opening a bank account, applying for loans and knowing how to withdraw or deposit money via an ATM is no longer sufficient for our customers. It is important that they are well informed so that they are able to ask for appropriate products to support and grow their businesses”, Kasi said.

 

 “It’s in the ability to make rational financial decisions that they can become competitive in business, hence the need for financial literacy training.”

 

 “Financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances”, he said.

 

Kasi urged beneficiaries in the different districts in which the programme will be implemented to prepare to participate in the next phase of the programme to make it a success.

 

Gideon Badagawa, Executive Director Private Sector Foundation Uganda (PSFU) commended Centenary Bank and aBi Trust for partnering with PSFU to implement the initiative.

 

Badagawa said that financial literacy is one of the many challenges affecting small businesses in Uganda; 

 

“Small businesses find it difficult to access finance in part due to lack of collateral but also because they are considered high risk clients.”

 

He added that the high risks are attributable to a number of factors including poor management skills, uncertainty of their businesses and poor record keeping practices.

 

“This training will therefore equip small businesses with necessary skills to enable them more bankable”, Badagawa noted.

 

Badagawa explained that phase 11of the training will involve empowering the target group with skills on record keeping, managing family businesses, personal finance, power of networking and agriculture as a business.

 

He added that the training is deemed to benefit entrepreneurs through classroom training in 10 districts that include among others Kasese, Kabale, Gulu, Koboko, Kapchorwa, Tororo, Kayunga, Mubende, Kiboga and Wobulenzi.

 

He added that mentorship training in 5 districts of Lira, Mbale, Mbarara, Arua and Kampala; “These will be complimented by DVD recorded training, booklets, radio interviews and  newspaper articles.”

 

“This is a continuation of phase1 financial literacy training where we reached over 50,000 people through classroom training and radio interviews in Lira, Mbale, Mbarara, Arua and Kampala”, Badagawa explained.