Equity Bank starts disbursing funds to PDM SACCOs
KIBOGA- Equity Bank Uganda will disburse over Shs 72 million to Savings and Credit Co-operative Societies [SACCOs] in Kiboga district under the Parish Development Model [PDM].
The programme launched by President Yoweri Museveni in early 2022 aims at creating socio-economic transformation in the country using the parish/ward as the epi-centreof development.
The Minister of Energy and Mineral Development, Ruth Nankabirwa, announced the start of the disbursement of cash to PDM SACCOs during the belated celebrations to mark the National Resistance Movement [NRM] Liberation Day held at Kiboga district last Thursday.
The partnership between Equity Bank and Kiboga District Local Government will allow the population at the parishes directly receive money from the bank at the most competitive rate to SACCOs holding Equity accounts and other mobile wallets.
Speaking at the function, Equity Bank Head of Social Programme, Paul Odong said the bank shall ensure the best optimisation of the cash under PDM because of its strong social programs and enduring financial inclusion culture and agenda. He added that Equity Bank will support the beneficiaries enter the money economy.
“Together with Kiboga district leaders, Equity is strongly positioned to support Savings and Credit Co-operative Societies to keep their light on during the prevailing post-COVID-19 pandemic that has slowed the economy, impacting the cashflow of several enterprises. By extending credit to the Savings and Credit Co-operative Societies, Equity demonstrates its commitment to walk with its customers, and to see their lives transformed, access more economic opportunities and create wealth,” said Paul Odong.
Odong added, “We have seen the impact of giving affordable credit to MSMEs and SMEs during this post-covid19 period, they have been able to reimagine, repurpose and retool their enterprises and emerged more resilient thereby protecting jobs and creating more job opportunities through venturing into more innovative initiatives such as manufacturing. Therefore, the bank will equally support Savings and Credit Co-operative Societies at the lowest economic units to retool and grow.”
He said Equity Bank was chosen as the preferred financial institution by the government of Uganda to spearhead the PDM rollout exercise in Kiboga district because of its sound and enduring financial inclusion culture and agenda.
Equity Bank, he said, will provide the SACCOs with products such as Enterprise credit facilities, SACCO credit facilities, and Women and Youth credit facilities. The amount to be borrowed range from as low as Shs 100, 000 and a maximum of Shs 200mln.
The SACCOs will also get free financial literacy and business development services.
Speaking at the function, Minister Ruth Nankabirwa said the PDM carries the gospel of promoting commercial agriculture, productivity, value addition, and marketing for better economic well-being and livelihood of the population.
Kiboga district leaders thanked Equity for supporting local governments in implementing the PDM program. They pointed out that PDM aim at helping people at parish level to increase their household income and join the money economy, in line with Equity’s mission and purpose.
The first beneficiaries are Kalyango Nkadwa SACCO, who received Shs 33.5mln to boost their businesses.
The PDM aims to lift 39 percent of households in Uganda from subsistence farming to a money economy. “This will eventually contribute to the Uganda vision 2040 which, envisages a transformed Uganda society from a peasant to a modern and prosperous country and hence the realization of the third National Development Plan which, prioritises inclusive growth, employment, and sustainable wealth creation at the household level,” said Nankabirwa.
Under the PDM, government plans to disburse Shs 100mln to each of 10,594 parishes each financial year for the beneficiaries engaged in various enterprises. The programme scheduled for five years kicked off in the current financial year, with several challenges emerging.
It emphasises the whole of government approach in ensuring increased production, processing and marketing, infrastructure, and service delivery t the grassroots levels.
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