USAID to fund agriculture co-operatives in Uganda
KAMPALA– Some of the agriculture co-operatives in Uganda will be able to access cheap loans enabled by United States Agency for International Development [USAID] / Uganda Strategic Investment Activity (SIA), with co-operators receiving the money after undergoing training in cooperative-related aspects.
Agriculture, which is among the three selected activities will take 75 percent of the funding while the energy and health sectors will receive 24 percent and 1 percent, respectively. About Shs500, billion is earmarked for the activities.
Henry Mawanda who represents USAID/Uganda SIA project said agriculture would take the biggest share of the funding because it is a major employer and pusher of Uganda’s economy.
Mawanda said a five-year project intends to unlock $140 million [Shs 500b] in commercial investments of private capital.
He was speaking days ago at Imperial Hotel in Kampala during the Second Annual General Meeting of the National Alliance of Agriculture Co-operatives [NAAC].
Under the arrangement, Mawanda, says, small and medium enterprises/ co-operatives will be prepared to become investment ready to qualify to receive the money. They will be trained in co-operatives aspects such as record keeping, how to mobilise resources as well as how to prioritise the organisation’s needs, among other topics.
He says most co-operatives are unable to get commercial bank loans due to high interest rates. “Co-operatives are struggling to raise working capital and most times, the fallback position are commercial banks whose interest rates are usually higher,” he says, adding that high interest rates constrain activities of cooperatives.
Co-operators who attended the meeting said the new initiative by USAID would help boost activities of their co-operatives since they will be able to get working capital.
“The project will save farmers from loans getting loans with shorter repayment periods,” he said, adding that even then farmers access bank loans without being prepared.
Uganda Strategic Investment Activity (SIA) funded activity aims to increase foreign and domestic investment in agriculture and related industries in Uganda.
USAID already called for proposals from qualified organisations interested in providing technical assistance to promote and support commercial investments that yield and advance inclusive agricultural sector development in Uganda.
As of February 2020, the cooperative movement in Uganda comprised of 21,346 registered cooperative societies with an estimated 5.6 million members. This compares with the 10,746 societies registered as of January 2011 based on data from the national statistical office. But they are registered under Cooperative Societies Act 2020, as amended.
https://thecooperator.news/government-to-step-up-extension-support-for-farmers-and-cooperatives/
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