Stanbic Bank launches Shs 50 billion fund for Saccos in Northern Uganda
GULU -Stanbic Bank Uganda has launched Shs 50 billion fund in Northern Uganda to support Saccos in the agro-processing as the bank aims to boost the agricultural value chain in the country.
The fund established under the Saccos finance and capacity building programme was unveiled on Friday in Gulu at Bomah Grounds.
The Chief Executive Officer Stanbic Bank Uganda, Anne Juuko revealed this while addressing hundreds of cooperative leaders at the launch of the project.
Juuko explained that the support is a private sector partnership with the government for investing in agricultural production with emphasis on agro-processing and value chain.
She further explained that the Bank had trained several group leaders in management of the Saccos, financial discipline and the skills for agro-processing.
The Corporate Communications Manager of Stanbic Bank, Kenneth Agutamba revealed that the fund would support about 1,000 different Saccos operating in Northern Uganda with an annual interest rate of 10 percent.
The Stanbic Bank Sacco Manager Patrick Kilama noted that the best approach for poverty eradication is to partner with groups and Cooperative Societies and urged members to remain integral at work.
The Commissioner Incharge of local economic development in the Ministry of Local Government Andrew Kamara noted that supporting ago processing will mean putting the many into the hands of the local communities for sustainable development through private sector partnership.
David Oringtoo, the Chairperson Deg-Mone Sacco in Amuru district commended the bank for training group members in business opportunities, management of loans, investment and banking services.
“I only knew about the Bank when they are taking away your land or assets because you can’t pay back the loan and this is the belief in the community that Bank takes away your property and they aren’t interested in borrowing and yet they have sunk of lands that they can’t develop,” Oringtoo said.
His counterpart Okello Hgaai, the Chairperson Amolatar Amule Development Saco revealed that they have already received 62 million unsecured loans for agro-processing and value addition.
The National Coordinator of Operation Wealth Creation, Gen. Salim Saleh who was the Chief Guest at the function commended Stanbic Bank Uganda for the financial support to the agriculture sector.
He said that agricultural production contributes to 37 percent of the Gross Domestic Product (GDP) of the country’s economy and urged the private sector to invest in agro industrialization.
“I want to thank Stanbic Bank for putting money to agricultural production which many of the partners consider as risky to venture in but I want to say this is one big investment for the Country,” Saleh explained.
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