First lady tells NSSF to start agricultural bank

The Deputy managing Director of NSSF Ms Geraldine Ssali (left), First Lady Janet Museveni hands 40 Smiles 40 Days’ Esther Kalenzi (right in white) a plaque after the organisation emerged the overall winner among socially empowering organisations.Looking on from the back is the NSSF managing director, Richard Byarugaba. PHOTO BY ISMAIL MUSA LADU

Kampala – The First Lady, Ms Janet Kataha Museveni has asked National Social Security Fund (NSSF) to start an agricultural bank, saying it is a necessity that is long overdue.
She said that foreign banks currently in the country are mainly profit-driven, noting that it was about time Uganda had an agricultural bank.
Speaking on Monday evening, at the NSSF Torch Awards, Ms Museveni said she is of the view that the Fund is better of investing part of it Shs5.5tillion into an agricultural bank, considering its importance in supporting and uplifting the livelihood of Ugandan farmers.
“If you asked me, I have thought about NSSF and wondered why they (NSSF) have not started an agricultural bank with the money that they have,” she said.

Uganda has 26 commercial banks, with none specifically inclined to exclusively lending to the agricultural sector.
“You don’t know what it means for a country to have an agricultural bank. The banks we have in our country mostly foreign owned banks. Foreign bank often don’t care about the development of national economies of third world countries. Their interest is profit,” she added.
In the 2015/16 budget speech, the government announced a plan to recapitalize Uganda Development Bank (UDB) by Shs500bn in the next five years. The increased capitalization is expected to provide credit to farmers at much lower interest rates.

Ms Museveni was the chief guest at the fifth annual NSSF Torch Awards that recognises and supports projects that have made a positive contribution to communities in Education, Health, Youth and other Disadvantaged Groups. On the night, NSSF awarded five social projects with a total of Shs80m.
According to the NSSF Managing Director, Mr Richard Byarugaba, the Torch awards that saw socially empowering organizations like 40 days over 40 smiles, Child Care Rescue Programme, Pearl Foundation For Children and Widows, Kyamuleera Women Handcrafts Association and Rachele Comprehensive Secondary School collectively walking away with money worth Shs80million in total, was introduced three years ago after receiving numerous requests asking the Fund for financial help.

“After receiving so many requests, we decided to start this award. And our policy is to direct our assistance in areas around education, health, youths and the disadvantaged. As part of our policy we also focus on organizations that have a national touch,” Mr Byarugaba said.
In her speech, the NSSF deputy managing director, Ms Geraldine Ssali, also the award lead judge said they received about 350 applications across the country. Out of that only five organizations were awarded.
For emerging as the winner, 40 smiles over 40 days was awarded a plaque and cheque of Shs20million while the other four regional winners each got Shs15million.
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