President Museveni Boosts Ugandan Entrepreneurs with Shs11.1 Billion in SACCO Funding
Kampala, Uganda – September 20, 2025 – In a critically important move too bolster Uganda’s grassroots economy, President Yoweri Kaguta Museveni today disbursed Shs11.1 billion (approximately $3 million USD) to Savings and Credit Cooperative Organizations (SACCOs) representing mechanics, Masters of Ceremonies (MCs), and graduates of the government’s Industrial Skilling Hubs. The funding, delivered during a meeting at State Lodge, Nakasero, aims to provide affordable capital for Ugandan entrepreneurs and stimulate economic growth at the local level.
This initiative underscores the President’s commitment to financially empowering ordinary citizens, a strategy that builds on existing programs like the Parish Advancement Model (PDM). As a long-time observer of Ugandan economic development, it’s clear this targeted approach is designed to address specific needs within key sectors.
Funding Breakdown & Eligibility
The financial injection is allocated as follows:
* Industrial Skilling Hubs: Shs8.8 billion, with each SACCO receiving Shs50 million. This funding is exclusively for individuals who have completed training at the various Skilling Hubs, providing crucial start-up capital.
* Mechanics SACCOs: Shs500 million, distributed at Shs100 million per SACCO. This supports workshops and businesses within the five divisions of Kampala City.
* MCs saccos: Shs1.8 billion, with each of the 18 zonal groups receiving Shs100 million. This recognizes the growing importance of the events and entertainment industry.
Currently, Kampala’s Skilling Hubs are not included in this round of funding as they finalize their SACCO registrations, according to State House Comptroller Jane Barekye.
Strict Loan Terms & Government Oversight
President Museveni emphasized the importance of responsible lending and financial discipline. He mandated a maximum annual interest rate of 6% on all loans issued through these SACCOs.
“Anybody who doesn’t do it goes to jail,” he stated firmly, highlighting the government’s commitment to protecting beneficiaries from exploitative lending practices. This 6% cap is strategically set to account for Uganda’s current inflation rate of around 3%, ensuring borrowers aren’t burdened with excessive debt.
The President also indicated a willingness to increase funding based on successful utilization of the initial investment. He encouraged SACCO representatives to work with government officials, specifically mentioning a potential special budget for fishermen due to the high cost of their equipment. A detailed plan outlining fund usage is required and will be personally signed by the President.
A Broader empowerment Strategy
This funding is part of a larger,ongoing effort led by President Museveni to economically empower a diverse range of Ugandans. State House Comptroller Ms. barekye noted that previous initiatives have focused on market vendors,youth in informal settlements,and other key demographics.
“This is about creating opportunities and fostering self-reliance,” she explained. “We want to see Ugandans building enduring businesses and contributing to the national economy.”
Key Personnel Involved
The initiative is being coordinated by a dedicated team including:
* Haji Faruk Kirunda: Special Presidential Assistant on Press and Mobilization,coordinating the MCs SACCOs.
* Eng. Raymond Kamugisha: Director of Presidential Projects and Industrial Hubs, overseeing the Skilling Hub Beneficiaries SACCOs.
* Mr. Yiga Kisakyamukama: Special Presidential Assistant on Service delivery, managing the Kampala Garage SACCOs.
* Mr. Ssegujja Fred: Chairperson of Aboogezi Bokumikolo United Savings Cooperative, representing the MCs.
This latest investment signals a continued focus on inclusive economic growth in Uganda. By providing access to affordable capital and emphasizing responsible financial practices, the government aims to unlock the entrepreneurial potential of its citizens and build a more prosperous future.
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