Alebtong Emyooga SACCOs struggling to recover over Shs 510mln
ALEBTONG, November 22, 2024 At least 17 Emyooga Savings and Credit Organisations [SACCOs] in Ajuri County, Alebtong district, are facing challenges in recovering over Shs 510 million that was advanced to various groups under the Emyooga Programme.
The Emyooga Programme, launched on August 19, 2019, is a Presidential Initiative on Wealth and Job Creation. It targets 18 categories of Ugandans, including boda boda riders, taxi drivers, restaurant operators, welders, market vendors, women entrepreneurs, youth leaders, people with disabilities [PWDs], journalists, performing artists, carpenters, salon operators, tailors, mechanics, produce dealers, veterans, fishermen, and elected leaders.
During a recent assessment of the Emyooga and Parish Development Model [PDM] in Ajuri County, Government Chief Whip Denis Hamson Obua discovered that only the Ajuri Carpenter Emyooga SACCO is performing well. This SACCO has so far received Shs 50 million, while the others are struggling to make any significant progress.
Francis Elau, Chairperson of the Ajuri Carpenter Emyooga SACCO, explained that some SACCOs and their members had diverted the funds to unproductive ventures, making it difficult for them to repay the loans.
Under the Emyooga initiative, the government has disbursed Shs 1 billion to the two constituencies in Alebtong District (Ajuri and Moroto). This initiative is part of a broader government strategy to transform 68% of households from subsistence to market-oriented production, with the overall objective of promoting job creation and improving household incomes.
Jamila Akello, Chairperson of the Elected Leaders SACCO, which received Shs 50 million through the Microfinance Support Centre (MSC), said the funds were distributed to parish councils, LC1 chairpersons, LC3 chairpersons, and district councillors. However, these recipients have not honored their loan obligations.
Akello noted that the government had distributed the Emyooga funds during a time of political campaigns, which led some recipients to misconceive the loans as free money from the National Resistance Movement [NRM] government to garner votes for President Yoweri Museveni during the 2020/2021 general elections.
She added that after the elections, efforts were made to encourage borrowers to repay the loans, but little progress has been made. “After the elections, we clarified that this is not free money. This money is a revolving fund and should be repaid so that others can also benefit,” she said.
Another challenge, according to Akello, is that some beneficiaries who invested the funds in farming were severely impacted by climate change, with droughts and floods destroying their crops.
Out of five groups that received funding, Akello reported that only two have started repaying the loans. She has since started engaging other members to encourage them to comply.
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