Hon. David Bahati the State Minister for Trade, Industry and Cooperatives (Industry), has said that the formation of Savings and Credit Cooperative Society Organizations (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 no required collateral securities required by commercial banks.
Bahati, who also doubles as the Member of Parliament for Ndorwa West, says that the interest rate in commercial banks is high because there are fewer savings and that is why 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 made the remarks during the launch of Mwendo Sacco in Mwendo Trading Centre, Kitumba Sub-county in Kabale District on Saturday and he promised financial and technical support to every village in his constituency that starts a Sacco.
Bahati also revealed that the government plans to tarmac the tourism and community roads in Kigezi as it already secured about $150 million (about Shs561.6b) for the tarmacking of Katuna-Rubaya-Muko community road to boost commercial agriculture production by facilitating farmers to access markets for their produce.
He also said the government has also secured $70 million (about Shs262b) for the tarmacking of Kabale-Lake Bunyonyi road to promote tourism as 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.
Moses Twesigye, the chairperson of Mwendo Sacco, said they have about 230 members who have saved about Ugx 19 million in addition to Ugx 10 million, which Minister Bahati invested in the same Sacco as his contribution.
He said that they are grateful to Bahati for the support given to their Sacco because they are able to offer simple loans to food vendors in Kabale Town and farmers that want to do modernized agriculture and he thanked Bahati for donating to them a computer and a printer to ease their banking services as of now they are waiting for his pledge to establish a room where a metallic safe box will be installed to keep members’ savings records.
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