Over the years since the late 1990s when the Government embraced the idea of the International Monitory Fund that led to the closure of Uganda Commercial Bank and Cooperative bank, the current government has put up several initiatives to support farmers and the agriculture sector but has reaped nothing.
Initiatives such as Entandikwa Scheme, Plan for modernization of Agriculture (PAM), Poverty Eradication Program (PEP), Bonna bagaggawale, NAADS, WEP, Operation Wealth Creation, (OWC), Emyooga, YLP, Luweero Triangle Fund, Community Agriculture Infrastructure Improvement Program (CAIIP) and many others have failed because of mismanagement of funds.
Yet the government has always borrowed money to support such initiatives since the current tax base cannot support these operations, however, despite the fact that money which runs these initiatives is borrowed, managers have squandered these monies for their personal gains and government for many years has not yielded from them.
Looking at the current initiative Parish Development Model (PDM) even if it was to create an impact in the communities, it will not because the factors that led to the failure of the past initiatives have not been worked on, and in the end, the managers and those close to them will become rich leaving the targeted people (farmers) drowning in the sea of poverty.
The government’s emphasis to extensively uplift farmers must be a frontline battle by not only runners of these operations but even the Parliament must fully carry out inspections on how best such initiatives can serve maximumly their targets. Because according to the Uganda Bureau of Statistics over 70 per cent of Uganda’s working population is employed in agriculture which calls for serious supervision.
However, as per the current situation, the way poverty eradication schemes are managed, there is still a long way. All investigation reports that have been carried out on why these initiatives don’t serve up to the last common man is because of poor financial management which is covered with corruption, and high bank rates. That’s why the idea of Rtd. Lt. Magufuli Moses Mugisha Babyomera to push for an Agriculture and Cooperative Bank in Uganda must be fronted on the floor of the August House.
Specifically, if Post Bank is converted into an agriculture and Cooperative Bank, a lot of the perennial challenges that have been making the previous initiative fail would be solved.
The Bank itself will work as a bridge between the financial wing and the farmers either through SACCOs or at individual levels in accessing credit loans at relative or not interest rates since the sole aim of the bank will be to uplift the entire agricultural sector of the country.
According to Rtd Lt Mugisha, over 68 per cent of Ugandans who are engaged in Agriculture have been dehumanized by commercial banks since they ask for high-interest rates because their aim is to make profits not to help farmers and the agricultural sector at large.
He alludes that if his proposal is embraced, Post Bank is the best bank to change into an agriculture bank because it has over 66 branches across the country and it won’t be complicated because it has already established structures that are necessary to execute the necessary roles sufficiently.
In one of the interviews, he carried out in one of the dailies, Rtd Lt Magufuri noted that for the government manage the challenge of finances in the poverty eradication schemes, it must create one finance vehicle instead of using different ventures whose main objectives is to maximize profits.
“There are several scattered Government funds channeled through initiatives such as NAADS, Emyooga, Women Development Fund, Luweero and Northern Uganda Development funds, as well as the Parish Development Model. The fact is that people do not need so many development initiatives but an agriculture and cooperative bank that can finance their ideas by giving them,” he said.
Post bank Uganda has been in Uganda since 1926 when it was started as a department in the Post Office and as of December 2020, Postbank Uganda had total assets worth Shs745 billion with shareholders’ equity worth Shs117.1 billion.
However, who is Rtd Lt Magufuri, a man who desires to see an agriculture and Cooperative Bank formed in Uganda
Born on February 2, 1986, just a few days after the NRM government assumed power. He was raised by Rtd Major Babumba Bwohe Henry, a pilot instructor in the Nakasongola Airforce.
The retired Lieutenant in the UPDF army sat his PLE from Kako P/S and UCE from Rwentobo H/S before he moved to Highway College Makerere. After his high school studies, he moved to Nkumba University where he obtained a bachelor’s degree in Procurement and logistics management. He later obtained a Master’s degree in procurement and logistics management from the same University. Magufuri also obtained another Master’s degree of science in monitoring and evaluation from Nkozi University.
He worked with Roofings Ltd as Administration Assistant and at Bishop Stuart university Mbarara as a lecturer. He officially joined the army in 2011 from Kabamba Military Academy in Uganda, he was sent to Somalia in 2013 until 2015 on special duties during the struggle by UPDF to restore peace in Somalia where he significantly fought corruption in the army something that prompted Gen. Saleh and Operation wealth Creation to deploy him as Procurement and seed monitoring officer at NAADS a position he still holds till date so he fights the corruption that was in that body.
Well known for fighting corruption in the army while in Somalia and now in NAADS, Mugisha decided to give politics a shot and in 2018, his retirement from the army was approved.
Due to his humble family background, Mugisha is said to be a no-nonsense officer who walks the Talk and is principled, honest and respectful.
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