The Kabale District LC5 Chairman, Denis Ndyomugyenyi Nzeirwe, has questioned the whereabouts of Shs13.59 billion disbursed under the Agricultural Credit Facility (ACF) to support agricultural production and agro-processing in the district.
His remarks followed revelations by the Deputy Governor of the Bank of Uganda, Prof Augustus Nuwagaba, that 325 beneficiaries in Kabale District had accessed Shs13.59 billion under the ACF.
Speaking on the second day of a Bank of Uganda town hall meeting attended by district leaders, members of the business community, academia and other stakeholders at White Horse Inn in Kabale on Friday, Prof Nuwagaba also said the government contributed Shs6.81 billion towards the financing accessed by the beneficiaries.
He added that 70 people in the district had benefited from the Small Business Fund (SBF), accessing Shs636 million, with the government contributing Shs318 million.
Prof Nuwagaba urged district leaders to disseminate information about the two financing schemes to farmer groups, SACCOs, women and youth enterprises and small businesses that qualify but may not know how to access the funds.
The ACF provides financing for eligible investments in agriculture and agro-processing, including machinery and equipment, post-harvest handling, farm infrastructure and value addition. The SBF supports eligible small businesses to recover, stabilise and grow.
Prof Nuwagaba said the financing opportunities were particularly important for Kabale and the wider Kigezi sub-region, where agriculture remains a major source of livelihoods.
He said Kigezi is among the areas covered by the Uganda Climate-Smart Agricultural Transformation Project, whose value chains include dairy, aquaculture and fisheries, bananas and coffee.
The region, he added, could benefit from increased production and productivity, improved storage, processing, value addition and access to markets.
However, Ndyomugyenyi questioned whether the funds were being invested in activities that directly benefit the intended beneficiaries.
Ndyomugyenyi, a farmer, said tangible results would be visible if the funds were directed towards agricultural production.
He said direct investment in the district’s production sector would also help attract investors to the area.
The district chairman also questioned the criteria used by commercial banks to disburse the funds and how beneficiaries were selected.
CUE IN NZEIRWE….ON FUNDS…..RR.ENG//
In response, Prof Nuwagaba said the central bank would work with commercial banks to establish where government-funded loans were invested and whether the money was reaching the intended beneficiaries.
He said it was currently difficult for the Bank of Uganda to establish the exact location of investments made by individual beneficiaries after receiving funds through commercial banks.
Prof Nuwagaba said the central bank would engage commercial banks to obtain information on the beneficiaries, the amounts received and the physical locations of their investments.
CUE IN PROF. NUWAGABA…ON THE MATTER…RR/ENG//
