New program on poverty alleviation will save Ugandans from exploitative moneylenders- Government

An official from the Microfinance Support Centre has said the Emyooga presidential initiative on job and wealth creation will save Ugandans from exploitative moneylenders.

Speaking during the launch of the program in the Greater Rwenzori districts of Bundibugyo and Ntoroko on Tuesday, Alfred Eboku Ejanu, the head of Credit and Operations at the Microfinance Support Centre said in the past, moneylenders have been taking advantage of desperate members of the public to exploit them.

“Our societies are sometimes very desperate when they have pressing needs that may come to them. Because people are not well grounded in terms of savings, not organized in groups, accessing cheap capital is very difficult which has prompted moneylenders to advantage of this situation to exploit them,” Ejanu said.

With formal financial institution interests rate floating at not less than 20 per cent, several Ugandans find it easy to turn to moneylenders who are prepared to bail them out although at a punitive cost.

On several occasions, the loan sharks’ interest rates are as high as high as 100 per cent but because of their informal nature of operations that don’t have many stringent and bureaucracy, many people continue to seek their services for quick loans as opposed to formal financial institutions.

The head of Credit and Operations at the Microfinance Support Centre confirmed that many members of the public have lost their property to moneylenders under unclear circumstances.

“Moneylenders have thrived by providing quick money to save people from emergencies but many(people) have lost a lot of hard earned property that they have saved over a lot of period of time,” he said.

According to the government official, on many occasions, moneylenders make desperate members of the public enter into quack sales agreements in which they end up losing their property.

Eboku however said that with the Emyooga presidential initiative on job and wealth creation, members of the public will be encouraged to come together in associations, then saccos to save and later borrow from their own saccos at a small interest rate.

“This initiative is coming to prepare our people to know that life has eventualities and unforeseen events in the future that may impact on their lives. We are teaching and sensitizing them to save some component of the earnings they make on whatever basis,” he added.

“This is for the unforeseen events but also for future investment. Once the initiative trickles down to people, we shall save them from the moneylenders. This is about financial literacy, awareness and saving for the future.”

The State Minister for Defence in charge of Veteran Affairs also the Bughendera County MP in Bundibugyo, Christopher Kibanzanga hailed government for the initiative that he said is timely.

“Whereas government has rolled out several projects, many people have been left out. This program will greatly benefit those never benefitted from earlier programs,”Kibanzanga said.

He however warned members of the public against politicizing the new poverty alleviation program.

 

 

 

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