The Islamic Development Bank has extended a Shs 60 million soft loan to support four Village Savings and Loans Associations (VSLAs) in Alebtong district. This financial assistance has been made available through the Local Economic Growth Support (LEGS) program, an integrated rural development initiative jointly funded by the Bank and the Government of Uganda.
The primary objective of this loan is to bolster the businesses of VSLA and farmer group members, enhancing their economic prospects. The beneficiaries are expected to repay the loan within a one-year timeframe.
Among the recipient VSLAs are the Obanga-amio VSLA, which received Shs 20 million, the Neno-Abor VSLA, also receiving Shs 20 million, the Anara Rice Farmer’s Group, benefiting from Shs 15 million, and the Bedigen VSLA, which received Shs 5 million.
Awaiting funds are the Canpe-ciki and Obanga-atwero VSLAs, both anticipating Shs 10 million and Shs 5 million, respectively.
Richard Okello Ali, the chairperson of Neno-Abor VSLA, expressed his appreciation for the one-year repayment period, as it allows members to effectively address household development. He emphasized that monthly repayments would not be as beneficial to their progress.
Richard Ogwang, the chairperson of Bedigen VSLA, urged for timely disbursement of funds in the future, citing the need for proper planning, especially for the group’s farmers who require timely access to inputs.
Florence Ebong, one of the beneficiaries, revealed her intention to utilize the funds to expand her small business by purchasing goods for trading, such as silverfish, millet, and tomatoes.
Betty Ayugi, a maize and soybean grower, expressed her plan to use the loan to invest in her farm, acquiring necessary planting materials to enhance agricultural productivity.
Christine Joy Auma, the Alebtong principal assistant secretary and the focal point person of LEGS, expressed relief that the targeted beneficiaries have received the funds to support their businesses, alleviating the pressure of demand for the money.
Henry Opio, the relationship officer at MSC, who witnessed the distribution of funds at Bedigen VSLA, expressed delight at the group’s commitment to repay the funds within six months, despite the one-year repayment period.
Opio, however, cautioned the beneficiaries to use the money wisely to maximize its benefits and enable others to also benefit from the revolving fund. He emphasized the importance of proper utilization and repayment for the sustainable growth of the program.
