Josephine Maseruka and David Muwanga
3 February 2009
Kampala — THE State Minister for Microfinance, Gen. Salim Saleh, yesterday said the Government had set aside sh262b for low-interest loans through micro-credit programmes.
Saleh said the money would be spent in five years and would be channelled through the Microfinance Support Centre (MSC).
"This company has sh40b for the next five months and it can loan out sh9b each month," he said.
This was at the launch of the five-year strategic plan for MSC at Kampala Serena Hotel. Saleh was flanked by the MSC chairperson, Dr. Specioza Kazibwe.
The function begun with a march from Nakivubo Blue Primary School.
Traffic was halted as hundreds of Savings and Credit Cooperative Societies members chanted praises for the President, Saleh and Kazibwe.
Saleh amused the gathering when he said, "Nze ani ayogera ne bawulira." (who am I to speak and be listened to).
He recently said he marked 32 months since he became a minister and had survived controversies attributing it to a laid down institutional microfinance framework.
Saleh warned that only people in genuine SACCOs and engaged in productive work would gain through the microfinance programme.
He said microfinance money was for all Ugandans irrespective of ethnicity, religious or political affiliations.
He said for accountability purposes, they would hold gombolola barazas every six months for leaders to explain how the funds were spent.
Kazibwe mocked Beti Kamya, the controversial FDC MP, saying she enjoyed NRM money.
"Beti Kamya is always knocking at our gates for our money and we always give her and we shall give her more for her SACCOs and for others in her constituency. We shall also give to every group in Uganda including those in Lira which is a staunch UPC area," she said.
Kazibwe was applauded when she said every SACCO would initially be given sh10m interest-free payable over a period of 24 months.
She said MSC gave loans to SACCOs engaged in agro-production at an interest rate of 9% and in return loaned to members at 13%, while for commercial SACCOs, loans were given at 13%.
Kazibwe noted that the 13% interest was still high and appealed to the Government to lower it.
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