Africa-Press – Uganda. Farmers and businessmen across the West Nile sub-region are demanding for relaxation of the terms and conditions in accessing the Agricultural Credit Facilities (ACF) loans and the COVID-19 recovery funds to boost the economy.
Ever since the loan schemes were created in 2009 and 2021 respectively, few farmers and businessmen in West Nile have accessed the funds. The majority have been left in limbo due to the information gap.
During a meeting organised by the Bank of Uganda (BoU) and Uganda Investments Authority on Thursday at Le Confidentiel in Arua District, the Director for Finance at BoU, Mr Richard Byarugaba, said they have lent about Shs840 billion to over 3,744 beneficiaries to create jobs and markets for smallholders.
“It is unfortunate that the people from West Nile have not been benefiting from these funds. We need to reverse this trend in the next three months because you should be beneficiaries of this. Just make sure that your records of business are up to date,” he said.
Mr Philliam Aleti, a resident of Vurra Sub-county in Arua District, proposed that the government should channel the funds to SACCOs and give the SACCO leaders power to disburse the money to their members since they know them well.
“There are a lot of bureaucracies in accessing the funds and this discourages people,” he said.
Dr Betty Udongo, a businesswoman in the area said: “There has been concealment of information to a few people. Our people need the correct information. But also, the conditions should be relaxed so that it becomes easily affordable and accessible.”
The State Minister for Investments and Privatization, Ms Evelyn Anite, cautioned the people of West Nile against borrowing the money without proper planning.
“We want people to access these monies because you equally pay taxes. But make sure you borrow the money to uplift your business so that you repay it. It is not free money but a loan,” she said.
The Chairman of Uganda National Chamber of Commerce Arua City branch, Dr Ronald Debo, said the problem arises from traditional banks that are promoting their routine loan schemes because the interest rates there are higher (18 to 20 per cent) while the affirmative actions are only at 10 to 12 per cent and the conditions are almost the same.
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