The Government has set out a new plan to fight poverty amongst the youth but this time it’s targeted to specialized groups in a move aimed at job creation.
In the Presidential Initiative on wealth creation and job creation locally referred as Emyooga, each Savings and Credit Cooperative Organization (SACCO) will be given Shs. 30 million as seed capital to boast savings of members.
The State Minister of Microfinance Haruna Kasolo launched the initiative in greater Luweero districts at Bukenya foundation hall in Luweero town on Wednesday.
Kasolo said that each district was to receive Shs. 570 million to support the SACCOs.
However, leaders in Luweero say the new Initiative is good but may not be a success citing gaps and timing.
Paul Mukungu the LC 3 chairperson of Luweero Town says that the Initiative is restricted to only 18 categories yet some are not available in each parish and others missed on the list.
Sam Mulwana the Luweero District Workers’ Association says that Initiative may help people to access loans at small interest but the 30 million shillings allocated per each SACCO is little for capital.
Ronald Ndawula the Luweero LCV chairperson says that there is still a poor saving culture among the people and many will form SACCOs to target only the money.
Ndawula wants the money to be channelled to microfinance support center and encourage it to open up regional branches where they can give out affordable loans to individuals.
Other leaders say the Initiative is intended to win support for President Yoweri Museveni ahead of elections and people will pick the money without clear ideas for investment.
This is latest Presidential initiative in fight against poverty. Other initiatives include special fund for Parish Community Association, Prosperity for All, Operation Wealth Creation, Youth, Elders, Persons Living with Disabilities and Women among others.
According to the Ministry of Finance, Government spends over Shs. 600 billion on special grants aimed at fighting poverty.