The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The government has contributed 7.3 billion shillings for the medical credit scheme.
This was revealed by Tom Aliti, the Commissioner in charge of Partnerships at the Ministry of Health. The scheme which will help private healthcare practitioners’ access credit is expected to start in July next year as they still await contributions from donors and contributing commercial banks.
Speaking at the Private Health Sector Convention in Kampala on Wednesday, Grace Kiwanuka Ssali, the Executive Director of Uganda Healthcare Federation, an entity that will be vetting the private health institutions to benefit from the scheme said four banks including Post, Stanbic, Centenary and Finance Trust have already expressed interest in extending low-cost loans to providers once it starts.
She says they will be extending loans at an interest rate of 12 to 14% which is lower than the 24 to 30% that commercial banks offer.
Dr Grace Murindwa, the Global Fund focal person at the IFC World bank says this scheme is not mainly targeting big Kampala hospitals that can afford taking loans from commercial banks but priority will be given to rural hospitals that are unable to move due to lack of basic equipment or supplies. He says they did a survey in Uganda that revealed 78% of health businesses have major constraints accessing credit.
However, the scheme was approved by the Ministry of Health and endorsed by Ministry of Finance later but it didn’t take off because donors had not yet committed on providing funds for it.
Aliti says that they are in discussions and have been promised the funds. Apart from the money, donors have been asked to help with the training and capacity building of the beneficiaries on doing business since according to them in medical school they are only trained on treating and not managing health business.
But, while the government is providing funding for the scheme here, Murindwa says other countries that have successful funds like in Nigeria, Kenya and Ghana, the government is not involved.
To be able to benefit from the scheme that is being planned to become operational in July, a facility has to have been in operation for a minimum of two years.
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