Agro-input Dealers Tap Into SMS Marketing

LIRA – Agriculture is among the most hit sectors since Covid-19 emerged two years ago. President Yoweri Kaguta Museveni recently announced a lockdown as a mitigating factor to curb the spread of the deadly virus with the country enduring wave after wave.

The second lockdown announced in June for 42 days came to an end this weekend. Since the pronouncement by President Museveni, like other sectors, farmers are stuck with their products.

The suspension of public transport, especially buses, had curtailed the movement of farmers from district to district. Ronald Odongo, a farmer used to enjoy the inter-district market.

For example, a dairy farmer from Kwania would sell their milk in major towns including Lira, Apac and Dokolo among others and earn more. Though it is still possible, the amount of milk such a farmer will sell today has reduced majorly because their market is under lockdown.

Every bad situation creates opportunities; Peter Odongo is among the latter, he is an agro input retail dealer based in Kwania district, who deals in seeds for vegetables and cereals, plus fertilizers, pesticides and fungicides and other agro-chemicals.

Odongo gives advice to clients on the best way to use the products for better yields. To reach the customers and to alert his 143 regular clients, when the new stock arrives, he sends them phone messages (SMS).

“I am using an SMS marketing strategy and this is all about marketing genuine products to customers as well as help them know where to get the stock and at what price,” he said.

“From between Shs 70,000 to shs 100,000 shillings profit I used to make on a daily basis, the SMS strategy has boosted my profit to about shs 200,000 from the stock I sell,” he adds.

Another input dealer Joyce Aceng not only sells her products through the texts sent to customers but also sends them appreciations or reminders. She uses MTN Pakapaka to send messages.

She noted that when she started using SMS marketing, her sales improved by 50%.

https://thecooperator.news/gulu-cooperatives-lose-millions-of-shillings-to-fake-agricultural-deals/

“When I started the business three years ago, I would not sell even 10 bags of fertilizers, for instance, in a season yet they were the most wanted by farmers. After adopting SMS marketing, my sales improved and I now sell more than 30 bags in a day,” she reveals.

“I not only use SMS but also advertise on radio because some farmers have no mobile phones but have radios. This has also increased the customer base. ” she added, saying she started with a capital of Shs1.5m and raised it to Shs 6m. Currently, she values the business at shs 30m inclusive of expenses.

The net profits have increased from shs 1m to shs 3m. If business goes well, in the next five years, Aceng expects the net profit to hit shs10m.

Johnson Ojok Ocen, the district Production and Marketing Officer Kwania, also an agronomist explains that:

“Instead of standing behind counters waiting for customers, the dealers actively engage in marketing and promotion by using SMS or radios in order to sell the products to farmers and that is a very good idea that others should borrow,” he said in a phone interview.

Kwania District Commercial Officer, Patrick Bura says; “We know that SMS is a powerful tool that is used by almost everyone but agricultural input businesses were not taking advantage of it. I want to encourage agro-inputs dealers to use SMS for marketing,” he notes.

Selling farm inputs, is a growing business that an increasing number of people in Uganda are engaged in. But it is also a business known to have counterfeits and unscrupulous traders, though there are also several traders who strictly deal in genuine products.

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Amolatar returns Shs 2.3 billion to treasury, draws mix reactions

AMOLATAR – Residents in Amolatar district have had mixed reactions to the failure by the Amolatar district local government to use Shs 2.3 billion in the financial year 2020/2021.

Public Finance Management Act 2015 Section 17 (2) stipulates that a local government vote that does not spend money that was appropriated to the vote for the financial year shall at the close of the financial year, repay the money to the Consolidated Fund.

Amolatar returned Shs 2.3 billion, part of Shs 1.2 billion meant for construction projects at Biko Health Center III in Namasale Town Council and Awonangiro Health Center III in Agikdak Sub County.

Part of the money was meant for salaries of secondary school teachers that were not recruited and other civil servants whose recruitment had issues delaying their appointment letter issuance.

Meanwhile, Shs 300 million was meant for construction works at Ryan Seed Sec School in Etam Town Council.

Henry Ddamba, the Amolatar Chief Administrative Officer [CAO] confirmed returning the fund to the consolidated fund, attributing it to delays in the procurement process and late release of funds by the central government.

“As a district, we returned to the treasury a total of Shs 2.3 billion and that is not a good statistic because these funds are supposed to be given to us to spend but we were not able to spend, and the challenge has been a delay in procurement,” he said.

Returning the fund to the consolidated fund has drawn mixed reactions. Nelson Kinyera, a resident of Nalibwoyo village in Namasale Sub County, expressed disappointment upon returning the fund.

Kinyera noted that a number of health facilities are operating on rundown structures at the expense of incompetent leaders who can not utilize government money within the given time frame.

“It’s not the first time Amolatar is returning money to the treasury, this is the third time in a row that we are seeing money being returned to the consolidated fund at the expense of the service delivery gaps in the community,” he noted.

Another resident Mariam Yusufu of Apalipe cell in Amolatar town council blames the failure to use the fund to `kickback’ demands from contractors by the procurement teams.

She says cases of child maternal deaths are surging in the community and urged the district leaders to take steps to end this trend.

Interviewed by theCooperator on Thursday, Amolatar District Chairman Geoffrey Ocen, lashed out at the contractor that was given the contract to rehabilitate health facilities for being incompetent.

“The problem is that the contractor awarded the project is undertaking quite a number of projects that overwhelms his efforts; I will ensure the same scenario doesn’t repeat itself for effective service delivery,” he said in an interview.

End.

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MSC Board Chairman Commends Masindi Authorities

MASINDI – Emmanuel Kiiza Aliba, the new chairman board of Microfinance Support Centre (MSC) has commended Masindi district authorities for the proper implementation of the Emyooga program.

Aliba is in Bunyoro sub-region on a fact-finding mission, to see how the Emyooga program is preforming.

Yesterday, he had an impromptu closed-door meeting at the Resident District Commissioners (RDC) office with a section of Masindi district leaders including Rose Kirabira, the RDC, Pamela Nyakato Secretary for Finance, Moses Kalyegira the District Commercial Officer (DCO) and the Municipal Commercial Officer.

“He came with the impression that the money had been disbursed but still stuck on the district accounts. But he was surprised to find that Masindi district had given out 98% of the money to the beneficiaries. He told those in attendance of the meeting that in other districts in the region, they have given out only 10% to the beneficiaries. He took it as a success for Masindi,” explained Moses Kalyegira, the Masindi District Commercial Officer while speaking to theCooperator in his office on Tuesday.

Kalyegira noted that Masindi district received Shs 1.68 billion, adding that Shs 1.48 billion has been disbursed to 54 Savings and Credit Cooperative Organizations (SACCOs) which were formed in the entire district to benefit from the program.

https://thecooperator.news/nine-saccos-cleared-to-receive-emyooga-funds-in-masindi/

He also explained that Shs 536 million has been realized as savings from the 54 SACCOs and Shs 130 million has been recovered from the beneficiaries.

“We would be doing better than this but we have been disrupted by the lockdown and the long dry spell we have experienced because many people have made losses. But I am optimistic that when the situation normalizes, we are going to do much better than this,” Kalyegira said.

He also indicated that they have a challenge of big SACCOs with many associations explaining that the Shs 30 million is too small for the members to do something tangible.

He highlighted categories like the Boda-bodas, market vendors, produce dealers among others.

Back ground

Emyooga is a Presidential Cluster Initiative on Wealth and Job Creation which was introduced in 2019.

In Bunyoro sub-region, it was officially launched in July last year by the State Minister for Microfinance, Haruna Kyeyune Kasolo in Masindi district.

The 19 clusters selected to benefit from the program include Boda-boda riders, salon owners, carpenters and taxi operators, welders, market vendors, journalists, performing artists, mechanics among others.

Under the project, each enterprise group with a minimum of 30 members is supposed to receive up to Shs 30m in funding, which is accessed as a revolving fund by members to boost their respective income-generating ventures, at the interest rate of as low as 5% annually.

In Masindi, for a beneficiary to get money, he or she should have saved 30% of the money he or she wants.

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Police Collects 10m From Motorists In Lango

LIRA – Police in the North Kyoga region has collected Shs 10,880,000 from motorists defying the Covid-19 Standard Operating Procedures (SOPs) in Lango sub-region in one month.

The money has been collected through fines from Boda-boda riders and drivers caught operating beyond curfew hours as well as those found carrying passengers.

This money was collected from the four districts of Otuke where 32 motorists were arrested and charged; Oyam where 43 motorists and 13 drivers were nabbed; in Dokolo district, police impounded 24 motorcycles and Lira where 23 drivers and 48 motorcycles were impounded.

All the money is said to have been deposited in the government account.

https://thecooperator.news/errant-boda-bodas-warned-you-will-be-banned/

Patrick Jimmy Okema, the North Kyoga police spokesperson says the Boda-boda riders and some people with private cars have continued to defy the guidelines which exposes everyone to risk.

Okema also acknowledged the possibility of extortion by some police officers executing these guidelines but said no victims have made any formal complaints, something he says is affecting the fight against corruption.

“If only a member of the public could help us cite one or two officers so that they can serve as an example to the others. But unfortunately, these are just rumors within the community and do not come directly to the police. If only they could do that, we would be able to deal with such things.”

However, Newton Ocen, a Boda-boda rider, says the need to provide for their families as well as meet their other needs has forced them to breach the presidential directives. Ocen, who used to make between Shs 30,000 to Shs 40,000 is now making a maximum of Shs 10,000 a day.

Jimmy Ocen, another rider in Lira said he has resorted to selling his belongings to service a loan he took to acquire a motorcycle.

On June 18th 2021, President Yoweri Museveni issued guidelines to curb the spread of Covid-19. Among these was observance of curfew starting 7:00pm, restriction of PSV and private cars while Boda-bodas were limited to carrying only cargo from 6:30am to 5pm.

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Financial Inclusion Key For Resilience – Bankers Conference 2021

UGANDA – Uganda Bankers Association (UBA) has been challenged to come together to drive financial inclusion as well as increase provision of financial services.

This was during the virtual Annual Bankers Conference (ABC), a signature industry event that brings together regulators, practitioners and various industry experts involved in delivering financial (banking services) from domestic, regional, national and international spheres; to discuss trending issues, drivers and dynamics that are increasingly shaping sustainability strategies in banking, finance and the overall development ecosystem.

The conference which was themed, “Bend but do not break” was aimed at finding ways in which the financial sector can thrive in the era of the 4th Industrial Revolution.

The conference was organized by UBA and sponsored by MasterCard, Raxio Data Center, FINCA, Experian, Stanbic Bank, Financial Sector Deepening Uganda, and KCB Bank.

Speaking during the conference, Joseph Lutwama, the Director in charge of programs Financial Sector Deepening (FSD) said that, there is a need for stakeholders to work with the government to create opportunities for economic empowerment.

“It is good that we have made strides in deepening financial access for those already using financial services; but for those who are still excluded, I think it is important that as stakeholders working with the government, we create opportunities for economic empowerment. Until we create those opportunities for economic empowerment, financial services and financial inclusion will continue to be a dream for many of those who are at the bottom of the pyramid,” Lutwama said.

“This will take collective efforts by not only the government and other private players but also financial institutions which still have a role to play in driving innovation and driving that economic activity that ultimately will benefit the financial services as more people are able to earn and own assets which they can insure and generate income,” he said, adding that multiplier effect only happens when they work together collectively to be able to drive financial inclusion as well as deepen financial markets.

Lutwama further advised, UBA to think of having what he termed as solid legal systems urging that this will help them to do business sustainably.

“Everything rises and falls with trust and there is no better place to build trust in the financial system than having a solid legal system; and more particularly a system which has a culture of enforcement of contracts. Financial services or any economic activity is driven by contracts whether written or unwritten; what will build trust is our ability to meet our end of the bargain of the contract. In a country where it is very difficult to get justice or where justice is always delayed, it will be difficult for people to trust and enter into contracts more so in the digital era where the person you are getting into a contract with is not seen. In the digital banks where a transaction is completed under a minute, and you don’t know whom you are transacting with, in the event that you have an issue, how are you compensated? So, in an environment where it is not clear, how you can be compensated, it will be very difficult for us to trust people and engage in financial services,” said Lutwama.

Lutwama further submitted that, “we will need to rethink the financial sector regulatory system; currently we have diverse regulators, Bank of Uganda, Capital Markets Authority, UMRA, National Payment System; there are many regulators, the financial system is becoming grey and it is very difficult to know where banking stops, where payments begin and where investment starts or retirement benefits start or stop, in such an era, it then becomes very important that we also need to break barriers between regulators and adopt systems that are more inclusive and impressive so that they become easier for some to innovate and even the regulators to ably protect the consumers.”

James Byaruhanga, the General Manager at Raxio Data Center called on financial banking institutions to embrace integration of the banking services to be able to tap into the global market.

“So you need to think about global payment platforms, for example MasterCard which will help to improve on service delivery in financial service sectors, so there is a need for integration; and integration becomes very critical because every single player can transact from one platform to another, the internet becomes a market place. So I think it’s time to think about adopting the internet as a market place,” said Byaruhanga.

Speaking at the same meeting, Mathias Katamba, the Chairperson UBA said that the banking sector has become versatile in this period of the Covid-19 pandemic adding that the sector needs to think beyond the impact of the pandemic.

“We do not only have to focus on how the sector has been affected, we should focus on what we can learn from these times and put the lessons into actions,” he advised.

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