UDB unveils plan to support Bunyoro women entrepreneurs
HOIMA, September 27, 2023 – Uganda Development Bank [ UDB ] has unveiled a plan to give financial support to organised women entrepreneurs in Bunyoro Sub-region so that they can grow their businesses.
According to Beatrice Kyosiga, the UDB officer who is in charge of women and youth doing business in the country, qualifying women stand a chance to receive between Shs 50 million and Shs 900mln, depending on the size of their businesses.
She noted that the money will be given to the beneficiaries at an interest of 5-12 percent per annum, with the repayment period ranging from five to eight years.
Kyosiga revealed the new development recently during a women’s business skills training meeting organised by the local non-profit organisation Bunyoro Women Development Network [BUWODEN] in partnership with the Uganda Women Entrepreneurs Association.
The meeting attracted over 200 women from Hoima City, the districts of Kikube, Masindi, Kibaale, and Hoima, and was aimed at preparing the women before they start getting money from UDB.
She urged the women to form groups and register their businesses to be supported financially, even though she said the UDB money would be given to individual women and companies dominated by women.
She said requirements for the loans include; collateral such as land titles, land, houses, they will also be required to have national identification cards, bank and mobile money statements, certificate of business incorporation, and financial records, among others.
Kyosiga said financial institutions are ready to help and empower women who run organised businesses.
She also challenged businesswomen to have an emergency fund to be able to sustain their business, and not to rely so much on loans.
Sylvia Nalumaga, the coordinator of BUWODEN who doubles as Hoima city deputy mayor commended UDB for the financial initiative aimed at helping women in Bunyoro to grow their businesses.
“Most of the women here [in Bunyoro] have no capacity to acquire a loan of Shs 50 million, most of them have the capacity of acquiring loans ranging from Shs 500,000 to Shs 10mln and this has kept them engaging in small-scale businesses. I am happy that UDB’s programme is going to push our women to another level because a woman who will fulfill the requirements will be able to get Shs 50mln. Our target is to have women in this area to borrow at least Shs 100mln,” she said.
However, Nalumaga challenged businesswomen in Bunyoro to avoid extravagant expenditures and instead save for future investments.
She also warned the businesses against mismanagement of loans acquired, saying it would cost them their properties such as land, houses, and others like vehicles.
Ubra Katusabe, a member of UWONED, said due to the high registration costs, many women in Bunyoro Sub-region have not registered their businesses to attract funding. She urged the government to reduce the cost of formalising businesses.
UDB is mandated to accelerate socio-economic development in Uganda through sustainable financial interventions. The Bank supports projects within the private sector that demonstrate potential to deliver high socio-economic value, in terms of job creation, improved production output, tax contribution and foreign exchange generation, among other outcomes.
https://thecooperator.news/udb-readies-shs-18-3bln-for-19-projects-in-bunyoro/
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