Kampala: Uganda's State House has issued a stern warning to graduates of the Presidential Industrial Skilling Hubs against misusing loans provided under the Savings and Credit Cooperative Society (SACCO) program, as President Museveni plans to bolster funding for these initiatives. Ms. Barekye, speaking at a stakeholders engagement held at the Tooro Zonal Presidential Industrial Skilling Hub in Kyenjojo District, emphasized the importance of financial discipline among beneficiaries.
According to African Press Organization, Ms. Barekye highlighted the need for graduates to first invest loans in productive projects before considering personal expenditures. The remarks came as the President announced intentions to inject more funds into SACCOs. The engagement aimed to review the performance of the skilling programme and its revolving fund, drawing in State House officials, political and technical leaders, SACCO executives, and beneficiaries.
The Tooro Zonal Hub caters to beneficiaries from various districts including Kyenjojo, Kyegegwa, Kamwenge, Fort Portal City, Bunyangabu, and Kabarole. Ms. Barekye explained that the Shs50 million allocated to each district SACCO serves as a pilot intervention to help graduates leverage their skills into sustainable enterprises. The State House is conducting joint reviews with local leaders to assess the program's effectiveness and identify challenges.
Ms. Barekye urged leaders to vigilantly monitor district SACCOs to ensure that funds are used appropriately. A finance manager, Mr. Ronald Aroho, has been appointed to enhance the supervision of SACCO operations and ensure accountability. Ms. Barekye also encouraged local governments to support graduates by awarding contracts and tenders to them.
The meeting also addressed the performance of graduates' SACCOs, with leaders raising concerns about loan access requirements. They suggested that easing some of these requirements, such as the need for National Identification Cards, could facilitate better access to funds by graduates.
Several beneficiaries shared their success stories, crediting the combination of vocational training and start-up capital for transforming their lives. However, they also highlighted challenges such as insufficient loan amounts to fully establish their businesses. Local leaders, including Resident District Commissioners, commended the program while suggesting areas for improvement.
The meeting formed part of the State House's ongoing assessment of the Presidential Industrial Skilling Hubs, graduate SACCOs, and model farms, gathering feedback to enhance the program. President Museveni's introduction of the revolving fund addressed graduates' concerns about the lack of capital to start businesses despite acquiring skills, with funds provided to each district graduates' SACCO for loan access.