Avoid commercial banks, Minister advises entrepreneurs

The State Minister for Microfinance, Hon. Haruna Kasolo Kyeyune, has advised small scale entrepreneurs to desist from taking high-interest loans from commercial banks, arguing that such rates may cripple rather than boost their businesses.

He made the remarks on Wednesday 11th March, while launching the Presidential initiative on Wealth and Job Creation (EMYOOOGA) at Bomah Hotel in Gulu Municipality.

Minister Kasolo said the interest rates charged by commercial banks on loans to small scale enterprises make them inaccessible for entrepreneurs. Instead, he proposed they borrow from the Microfinance Support Centre Ltd (MSC) which, he says, offers cheaper credit.

“Now that you have your own institution which has been set up by government to support you, avoid accessing high interest loans from banks,” he said. “You don’t even have the collateral or security required for those expensive loans.”

He added that government is rectifying the challenges affecting the effective operations of Microfinance Support Centres (MSC)in order to better serve small-scale enterprises across the country

“We have commercial officers at district level who should mobilise people into groups and link these groups to access financing cheaply through MSC,” he said.

‘Don’t politicise initiative

Mr Kasolo also warned leaders from Acholi Sub region against politicising the initiative, saying this would frustrate its core objectives.

“On issues of development, we are all in it together. I was sent by the president of the country, not the Chairman of NRM; and this is a presidential, not an NRM initiative,” he stressed.

Amuru Woman Member of Parliament Ms Lucy Akello had accused NRM leaders of failing to differentiate between party projects and government initiatives meant to benefit all citizens.

“Let’s think beyond our party when it comes to developmental issues, for the betterment of our citizens,” she urged.

About Emyooga

The Presidential initiative on Wealth and Job Creation, known locally as Emyooga, aims at supporting small scale enterprises as part of government’s commitment to stimulate market-oriented production.

Under the initiative, each SACCO of 30 members or more stands a chance of receiving support of up to Shs. 30 million in initial seed capital.

The post Avoid commercial banks, Minister advises entrepreneurs appeared first on The Cooperator News.

Ministry of Agriculture signs MoU to promote cashew nut production

Cashew nut farmers have reason to celebrate after signing a Memorandum of Understanding with the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) to develop the crop’s value chain on Wednesday this week.

Representing government at the signing was Henry Aggrey Bagiire, the Minister of State for Agriculture while growers of the highly prized crop were represented by the Uganda Cashew nut and Trees Limited, under which they are organised.

Hon. Henry Aggrey Bagiire the Minister of State for Agriculture at the signing of the MoU. MAAIF photo

The partnership is expected to boost cashew nut production and promote trade in Ugandan Cashew products both locally and internationally.

In addition, under the MoU, more than 300,000 cashew seedlings are to be supplied to farmers in 42 districts countrywide, particularly in the country’s cattle corridor and in other dry areas.

Although Africa accounts for a significant percentage of the global cashew nut production, Uganda’s own contribution to this figure remains meagre. Today, most cashew production is carried out by small-scale farmers in Eastern and Northern Uganda.

This despite the fact that the country enjoys a long history of promoting the crop, starting in the 1970s. Due to several factors, the cashew nut industry collapsed in early 1980s until its revival in 2004.

However, given its high demand on the international market, Cashew has been identified as a possible source of income for small holder farmers in addition to bringing in much needed export earnings.

Recognising this potential, President Museveni in October 2017 directed that cashew nut be added to the country’s priority commodities, and an engagement be initiated between MAAIF and the Uganda Cashew nut and Trees Limited to develop a cashew nut Value Chain.

Benefits

Cashew nut is widely celebrated for its nutritional benefits, especially for being rich in both proteins and minerals. It is also used in the manufacture of various industrial products including varnishes, tiles, gum, cements and so on.

The post Ministry of Agriculture signs MoU to promote cashew nut production appeared first on The Cooperator News.