Uganda Development Bank, one of the financial entities in Uganda, during Gulu University Trade Shows decried that lack of business formalization are the major bottleneck problems in Uganda.
GULU CITY-SATURDAY, JULY 20, 2024.
By Stephen Langole.
Uganda Development Bank geared toward revitalization of the Agricultural economy, but decried that there is overwhelming retardation in the business sectors, this due to lack of entrepreneurs knowledge and skills as Ugandans population still remain ignorant.
Sam Ongom, Uganda Development Bank Regional Manager for the Greater North, based in Gulu City remarked that UDB deals with former group, the Cooperative Society to give them loan but not individual farmers, without that UDB will not give funds to farmers.
Uganda Development Bank, Regional Manager says UDB does not have a limited amount to give to Cooperative Society who channel funds to group farmers, the minimum we offer is UGX 50 million, but the corporate body can get even UGX 50 billion.
“But if you want any amount, we will give you.” Sam Ongom reiterates.
However, we don’t look for markets, but we give value addition to farmers. We also can give funds for construction of a warehouse, cellos for Maize story, Beans, Sun floor and cleaner for dryer Maize for content riveter control.
The Black Star News Correspondent tasked him to give the success of Uganda Development Bank accountability since the UDB has been incorporated by Uganda Development Cooperation, UDC was created in the 1960s? What is the achievement that the UDB is proud of?
Sam Ongom, reiterates that UDB has created financial business opportunities for Ugandans, help Ugandans to promote local industries, help Ugandans to generate foreign exchange and also help Uganda to reduce on export.
“Basically UDB does not have money we are inspiring to promote local content”
The Black Star News, also questioned Sam Ongom to give his input whether there is a constraint UDB have registered, if any?
Sam Ongom says there are a number of challenges Uganda Development witnessed, among others is the lack of business formalization, poor record keeping, poor financial management, lack of management skills for business.
Although he refuses to comment on supporting farmers in Northern Uganda, he comments that they don’t commit to anything in operation. Those who want to get a loan from UDB, can go ahead to borrow because loans are personally cooperative loans.
Igard Omony, 25 years old, is a farm manager Agrishare APP based in Nwoya District, Northern Uganda says for the last two years they have been offering three tractors to the company and running adverts online as part of community outreach.
As part of their activity, they plough 30 acres each day for the community who hire them, but at the moment because famers are harvesting their product from the gardens, they have limited work to do.
“By now our tractors are down due to the harvest period in Northern Uganda, however, our company has served for six years in Kampala. When we came to Nwoya District, for the first one year, our activity was low because we did not have more clients. But now we have more than 1,000 clients.
Omony adds, they also have individual’s farms, other work which they do, they inspect individual farms, the yield of crops, they also offer services like Maize huller.
“Our company inspect land soil fertility, Agrishare APP also carry door to door mobilization on marketing in rural areas in Nwoya District. “ Omony remarked.
They also help Victoria Seed company and Harmathion plough which are big cooperates company in Nwoya district and small farmer Pit Ber group plough their Maize farm, Nge Coni in Purongo Sub County who are cultivators of Cassava. We helped to get the market in Bukona Factory, we have transported 5 metric tons of Cassava last year in 2023, and also Maize we transported 7 metric tons. We have helped Harmathion to transport fruit, Mangoes and transported Oranges.
The Black Star News, caught up with Prosy Nala, 40 years old, the Agriculture and Credit Scheme, during trade shows at Gulu University show ground and ask her what is the roles of Bank of Uganda in supervision on Credit Scheme
Prosy Nala, says Bank of Uganda on 31st March 2020, through Agriculture Credit Facility we have disburse loans of 3,962 to individuals of UGX
872.5 million that is what the Bank of Uganda Credit Facility we have given.
“Through Bank of Uganda, the government has insurance, most of this like livestock insurance and crop production insurances. For example, if you have assets financial, it has collateral surety to act as security, the surety should become insured.” Prosy Nala mooted.
She revealed that the Agricultural Credit Scheme has 24 Banks in the country that are under Credit Agricultural Scheme.
Ask about the success story, Prosy Nala, says if a person takes MTN money, people are happy with our products.
However, she noted that the Agricultural Credit Scheme has enormous challenges, just for example from Northern Uganda the farmers they don’t have collateral security surety. But, they can have those support through blog allocation.
Those are the fellows who need loans below UGX 20 million, she advises that banks can use other alternative insurance group lenders like off take.
The Black Star News, mooted to her if through Bank of Uganda Agricultural Credit Loans Scheme can team up with East and Central African Logistic Hub, built in Gulu City, which still await GRU railway, the Logistic Hub has become a white Elephant.
Prosy Nala, reasoned that unless The East and Central Logistic Hub located in Gulu City can reach out to them for mutual understanding, Bank of Uganda Agricultural Credit Scheme would be willing to team up with them.
“Let Logistic Hub invite us to have discussion; we can have to partner with them” Nala reiterates.
