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Kampala, Uganda | THE INDEPENDENT | Chairpersons of Emyooga Savings and Credit Cooperatives in the Ankole region are struggling to recover Emyooga funds.
Emyooga was launched in 2019 aiming at creating jobs and improving household incomes of Ugandans in various categories including the boda boda riders, journalists, taxi drivers, restaurant owners, artists, welders among others. The program is a revolving fund and has a repayment period of six months.
Each registered SACCO received 30 million shillings through the Microfinance Support Centre that is borrowed out to associations comprised of between 7-30 members at an interest of 8% per annum that is also registered under a specific SACCO.
The leaders want the grace period extended from three months to at least six months due to the effects of Covid-19. They also want new guidelines on how the funds will be recovered.
Innocent Muhwezi, the chairperson of the Rwampara Welders Association says they are already facing the challenge of recovering the money from members. He says that they had just received the money when the President announced the second lockdown.
Charles Byaruhanga, Chairperson of Mbarara City Carpenters SACCO says that much as the program is focusing on savings, most members are failing to save which is affecting the recovery of the funds.
He says most businesses were affected by the two lockdowns imposed to curtail the spread of Covid-19.
Anna Barumu, a market vendor and the chairperson of Kyanjura Vendors Association says that they received the 30 Million on June 1 and a week later, the President announced a lockdown. She says that the money is yet to be utilized by the beneficiaries.
Andrew Ziimbe, the Manager Microfinance Support Center Mbarara branch says that the SACCO leaders and the groups should decide to reschedule the period to pay back the money.
Last month, Members of Parliament were sent on a working recess to their constituencies to assess the impact of the Emyooga program.
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