Masaka SACCO Rejects Anti-Poverty Funds

from All Africa

New Vision (Kampala)

NEWS

By Ali Mambule
Kampala

LWENGO Micro-finance Savings and Credit Cooperative Society in Masaka district has rejected an offer to manage the Bonna Bagaggawale funds as suggested by the Lwengo sub-county leaders.

Under the scheme, each sub-county is supposed to identify at least two successful micro-finance institutions to manage the funds.

James Kizza, the chairperson of the Lwengo SACCO (Savings and Credit Cooperative Society), in a letter to their area MP, Isaac Sejjoba, said the conditions set in the Bonna Bagaggawale scheme were not favourable for the growth of micro-finance institutions.

He pointed out that the 1% interest decreed by the Government under the scheme could not maintain the institution which had to pay staff and take risks of non-payment from borrowers.

"We are not ready to kill our microfinance that has been developing steadily. We request you to persuade the MPs to amend the law concerning these funds," wrote Kizza.

Lwengo microfinance charges an interest of 3.5%.

Eriyas Nyindo, a member of the SACCO, advised the Government to create microfinance institutions specifically for Bonna Bagaggawale, saying the low interest rates would suffocate the thriving community-owned SACCOs.