By Irene Lamunu
A group of thirteen women in Nnamengo Kasambya village, Lugazi Municipality in Buikwe District were advised to come together and form a group. This group was going to benefit from the government strategy, known as the Parish Development Model (PDM). The women said they are farmers rearing pigs and they expect to boost their business with better breeds when they finally receive the money. The group members said they will be able to reimburse the money with a 6% interest after one year, which is the designated period of payback. This money will in turn help other members in this model. The money will be deposited on each individuals mobile money account, though they are not yet sure of how much each will receive.
The Parish Development Model (PDM) is a government development strategy to improve incomes and the quality of life for 39% of the households stuck in the subsistence economy. This percentage translates to 3 million households and 16 million people. The PDM initiative was launched by President Yoweri Museveni on 26 February 2022 in the eastern district of Kibuku. Meanwhile, before the PDM, there was the Presidential Initiative on Wealth and Job Creation (Emyooga), which was launched in August 2019 as part of the broad government strategy, targeting to transform 68% of homesteads from subsistence to market-oriented production with the overall objective of promoting job creation and improving household incomes. The initiative was centered on various 18 categories/enterprises/ Emyooga, covering majority of the hitherto, financially excluded Ugandans engaged in similar specialized enterprise categories. Many people were requested to form savings groups, which groups would open a savings account in the bank for the group on which the Emyooga money would be deposited by government. Thereafter, every individual of the savings group was required to have saved money on the group’s account. In case one wanted to borrow the money, you would be requested to deposit money on the same account number, then present the bank slip to the treasurer, who would verify your deposits.
In one of the Emyooga groups, for one to be able to borrow, they would be requested to save Ugx 330,000 to borrow Ugx 1,000,000, save Ugx 660,000 to get Ugx 2,000,000, save 990,000 to get Ugx 3,000,000. Emyooga SACCOs across the country had been instructed to lend to their members at 8% interest per year. The call was made by the Minister of State for Microfinance, Haruna Kyeyune Kasolo while monitoring the performance of the Emyooga Programme in Hoima City, Bunyoro sub-region. “Lend to your members at 8% interest per year. If a borrower takes a loan of 1 million shillings, they should pay an interest of 80,000 shillings the whole year.
If he/she borrows 1 million shillings to be paid back in 6 months, the borrower should pay an interest of 40,000 shillings. The Emyooga SACCOs belong to members, not just you the leaders. We want SACCOs to grow when members have also developed. We don’t want SACCOs to grow when their members are poor,” said Kasolo. In June, the minister of finance, Matia Kasaija in his budget speech for the financial year 2023/2024 held on 15th June said the theme of the budget is; “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
The minister is quoted saying: “Madam Speaker, the Parish Development Model (PDM) will boost household incomes as well as the development of micro enterprises. Since the launch of the PDM in February 2022, a total of Shs. 590.2 billion has been disbursed to all the 10,459 parishes nationwide, translating into Shs. 50 million per parish. The balance will be disbursed by end this month. Next financial year, the Parish Development Model has been allocated Shs. 1.1 Trillion.” On the Emyooga initiative, the minister said government would further boost household incomes and micro enterprises at parish and sub-county levels by directly funding parish and sub-county level enterprise groups. He added that by March 2023, seed capital worth Ugx 249 billion had been disbursed to 6,721 constituency based Emyooga SACCOs. Over 600,000 individuals had successfully applied for credit from their Parish-based Associations. Nearly half (46%) of these were women, youth (25%) and PWDs (4%). Minister Kasaija noted that the Emyooga SACCOs had mobilized savings of Ugx 76 billion, and a further Ugx 80 billion recovered from the loans given to beneficiaries. He noted that next financial year, Ugx 100 billion has been allocated to the Emyooga initiative.
“Another way in which the government wants to boost development in the country is through the Presidential Industrial Hubs initiative. This initiative is supposed to help grow local enterprises, and 19 skilling centers have been established across the country under this initiative,” Minister Kasaija added. According to him, 28,750 trainees had successfully completed training in skills programs and 6,110 are under-going training in various fields.
This initiative also empowered the ghetto and less privileged urban youths through 9 skilling centers in Kampala Capital City Authority. The finance minister added that support for this initiative will continue over the medium term and Ugx 60 billion had been allocated for skilling the youth in next financial year. PDM money will not only be used to boost business but also help in boosting education of pupils from poor families whose parents cannot be able to pay their school fees. This will however be approved under strict rules.
According to the plan, every beneficiary of the programme would be compelled to ensure that their children complete education cycles. that; The New Vision is quoted as stating “The condition according to the government is intended to ensure that it minimizes the rate of school dropout in the country.” Therefore, parents must ensure that their children transition
