Equity Bank Uganda will disburse over UGX 72 million to parish Savings and Credit Co-operative Societies in the Kiboga district under the Parish Development Model (PDM). The program launched by the government in early 2022 aim at eradicating poverty and creating employment and wealth through the execution of development activities at the parishes.
The Minister of Energy and Mineral Development, Ruth Nankabirwa, announced the start of the disbursement of cash to Savings and Credit Co-operative Societies (SACCO) during a belated celebration to mark the NRM Liberation Day held at Kiboga district on Thursday, February 16th, 2023.
The partnership between Equity Bank and Kiboga District Local Government will allow the population at the lowest economic unit directly receive money from the bank at the most competitive rate to Savings and Credit Co-operative Societies holding Equity accounts and other mobile wallets.
Speaking at the function, Equity Bank Head of Social Program Paul Odong, said the bank shall ensure the best optimization of the cash under PDM because of its strong social programs and enduring financial inclusion culture and agenda. He added that Equity Bank will support the beneficiaries enter the money economy.
“Together with Kiboga district leaders, Equity is strongly positioned to support Savings and Credit Co-operative Societies to keep their light on during the prevailing post-COVID-19 pandemic that has slowed the economy, impacting the cashflow of several enterprises. By extending credit to the Savings and Credit Co-operative Societies, Equity demonstrates its commitment to walk with its customers, and to see their lives transformed, access more economic opportunities and create wealth,” said Paul Odong.
Odong added, “We have seen the impact of giving affordable credit to MSMEs and SMEs during this post-covid19 period, they have been able to reimagine, repurpose and retool their enterprises and emerged more resilient thereby protecting jobs and creating more job opportunities through venturing into more innovative initiatives such as manufacturing. Therefore, the bank will equally support Savings and Credit Co-operative Societies at the lowest economic units to retool and grow.”
Equity Bank Uganda was chosen as the preferred financial institution by the government of Uganda to spearhead the Parish Development Model (PDM) rollout exercise in Kiboga district because of its sound and enduring financial inclusion culture and agenda.
Equity Bank will provide the Savings and Credit Co-operative Societies with products such as Enterprise credit facilities, SACCO credit facilities, and Women and Youth credit facilities. The amount to be borrowed range from as low as UGX100,000 and a maximum of UGX 200 million.
The Savings and Credit Co-operative Societies will also get free Financial Literacy and Business Development services.
Speaking at the function, Minister Ruth Nankabirwa said the Parish Development Model carries the gospel of promoting commercial agriculture, productivity, value addition, and marketing for better economic well-being and livelihood of the population.
Kiboga district leaders thanked Equity for supporting local governments in implementing the PDM program. They pointed out that PDM aim at helping people at parish level to increase their household income and join the money economy, in line with Equity’s mission and purpose.
The first beneficiaries are Kalyango Nkadwa SACCO, who received UGX33.5 million to boost their businesses.
The PDM aims to lift 39 percent (about 3.5 million people) of households from subsistence to a money economy. “This will eventually contribute to the Uganda vision 2040 which, envisages a transformed Uganda society from a peasant to a modern and prosperous country and hence the realization of the third National Development Plan which, prioritizes inclusive growth, employment, and sustainable wealth creation at the household level,” said Nankabirwa.