Home News West Nilers tipped on utilising Govt loans to grow their businesses

West Nilers tipped on utilising Govt loans to grow their businesses

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People of west Nile have raised concerns over limited information and tough conditions for access to government loan facilities to aid recovery for small businesses and to boost Agricultural production.
They were speaking at a meeting organized by Bank of Uganda to sensitize farmers and business communities in west Nile on how to access the small Business recovery fund (SBRF) and Agricultural Credit Facility (ACF). The meeting took place at Hotel Le Confidentiel in Arua on Thursday.
A number of small Business owners and farmers said the stringent requirements make it impossible for most interested persons in the region to access the loans.
Trinity Caesar Draecabo, the former interim Chair for Uganda National Chamber of Commerce for Arua City called for considerations in the policy to allow SACCOs give out the moneys to enable the local people have easy access to the loans.
Hon Marlon Avutia, the Mayor Ayivu Division appealed to Bank of Uganda to prevail over commercial banks and money lenders, accusing them of charging exorbitant interest rates. He said the community engagement by Bank of Uganda was long overdue.
Hon Wadri Sam Nyakua, the Lord Mayor Arua City faulted Bank of Uganda and commercial banks for failing to educate the public on the availability of the loan facilities.
“Many of our people are not able to access these loan facilities because Bank of Uganda has not been able to do enough information sharing.” Hon Nyakua remarks.
Ronald Debo, the current chairman of Uganda National Chamber of Commerce Arua City pledged support of the chamber in helping businesses thrive in the city.
Hon Evelyn Anite, the Minister for Privatization and Investment pledged to put all her energy to ensure the people of west Nile benefit from the loan offers like other regions. She however warned the people of west Nile against going to borrow out of mere excitement.
“My people the NRM government has brought all these loans to equip you with resources to better your lives. Please do not go and borrow these loans if you are not ready and able to pay back. Government has out in place other funds like Emyoga, Parish development Model among others. See where you can fit.” Minister emphasizes.
Richard Byarugaba of Bank of Uganda warned the commercial banks against complicating the process of accessing the loans meant boost businesses and agriculture within the local communities.
Richard Nuwenyesiga, the Deputy Director Science Technology and Innovation in Uganda Investment Authority encouraged business people to embrace online registration of their businesses.
The bank of Uganda officials also advised the public to deal with financial institutions licensed by Bank of Uganda other than money lenders. They are however calling upon the commercial banks to get out of their comfort zones, intensify advertising and reach out to the public with the products they offer.
Various commercial banks were allocated specific targets of beneficiaries to access the loans by March next year.
Under the policy provisions, small businesses employing between two to 49 people with annual turnover between 10 to 300 Million shillings are eligible to borrow up to 200million shillings of the SBRF loan. Whereas private sector businesses and individuals engaged in agriculture, Grain trade, Agro-processing and mechanization are eligible to borrow up to 2.1billion shillings with loan repayment period of six months to eight years.

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