What you need to know:
- Mr Bahaiti also revealed that the government plans to tarmac the tourism and community roads in Kigezi.
The State minister for Trade, Industry and Cooperatives, Mr David Bahati, is pushing for the formation of savings and credit cooperative society organisations (Saccos) at the village level to improve livelihoods.
“The formation of Saccos at every village in Uganda will promote a saving culture that will facilitate the operators of small-scale businesses to access simple loans to boost their trade since most of them have the required collateral securities required by commercial banks,’’ Mr Bahati said.
He made the remarks during the launch of Mwendo Sacco in Mwendo Trading Centre, Kitumba Sub-county in Kabale District at the weekend.
Mr Bahati, who also doubles as the Member of Parliament for Ndorwa West, said the interest rate in commercial banks is high because there are fewer savings.
“The government is encouraging the formation of Saccos in all rural areas to overcome the challenges related to lack of capital to start or boost small-scale businesses for economic growth,” he said.
The minister promised financial and technical support to every village in his constituency that starts a Sacco.
The chairperson of Mwendo Sacco, Mr Moses Twesigye, said they have about 230 members who have saved about Shs19 million in addition to Shs10 million, which Mr Bahati invested in the same Sacco as his contribution.
“We are grateful to Mr Bahati for the support given to our Sacco because we are able to offer simple loans to food vendors in Kabale Town and farmers that want to do modernised agriculture. We thank Mr Bahati for donating to us a computer and a printer to ease our banking services. We are waiting for his pledge to establish a room where a metallic safe box will be installed to keep member’s savings records,” Mr Twesigye said.
The district planner, Mr Boaz Kakuru, welcomed the idea of establishing Saccos at the village level, arguing that they will deliver services closer to the people.
“We have 728 villages in Kabale and if a Sacco is established at every village, about 2,184 jobs will be created in case each Sacco is to have an accountant, a cashier and an auditor,” Mr Kakuru said.
Mr Bahaiti also revealed that the government plans to tarmac the tourism and community roads in Kigezi.
“The government has secured about $150 million (about Shs561.6b) for the tarmacking Katuna-Rubaya-Muko community road to boost commercial agriculture production by facilitating farmers to access markets for their produce,’’ he said.
Mr Bahati said the government has also secured $70 million (about Shs262b) for the tarmacking of Kabale-Lake Bunyonyi road to promote tourism.
“The tarmacking of the road will also come with the establishment of two ferries that will ease means of transport on the lake, besides promoting the safety of traders who have been using dugout canoes to transport their merchandise,” he added.