Kampala: The Ugandan State House has issued a stern warning to graduates of the Presidential Industrial Skilling Hubs regarding the misuse of loans, as President Yoweri Museveni plans to boost funding for Savings and Credit Cooperative Societies (SACCOs). Ms. Barekye, speaking during a stakeholders' engagement at the Tooro Zonal Presidential Industrial Skilling Hub in Kyenjojo District, urged beneficiaries to practice financial discipline and invest in productive activities rather than non-essential expenditures such as alcohol and bride price payments.
According to African Press Organization, the engagement brought together State House officials, political and technical leaders, SACCO executives, and beneficiaries to review the performance of the skilling program and its revolving fund. The Tooro Zonal Hub serves beneficiaries from various districts including Kyenjojo, Kyegegwa, Kamwenge, Fort Portal City, Bunyangabu, and Kabarole. Ms. Barekye emphasized the importance of financial discipline and urged beneficiaries to invest wisely in their projects to ensure sustainable income-generation.
Ms. Barekye announced that each district SACCO had received Shs50 million as a pilot intervention to help graduates leverage their acquired skills into viable enterprises. The State House, in collaboration with local leaders, is reviewing the program to ensure the funds are serving their intended purpose and to identify any challenges faced by beneficiaries. Leaders were encouraged to monitor the district SACCOs closely to ensure that the funds reach the intended recipients and are used as intended.
A newly appointed finance manager, Mr. Ronald Aroho, pledged to work with SACCO leaders and district officers to improve accountability and ensure the funds yield positive results. Ms. Barekye praised district commercial officers for their guidance and monitoring efforts and directed Mr. Aroho to coordinate with them effectively. She encouraged district leaders to make unannounced visits to assess the hub's training and management.
Local governments were urged to support graduates by offering them contracts and tenders, particularly in areas they were trained for, such as manufacturing school desks and beds. Additionally, communities were encouraged to use the hub's model farm to gain practical knowledge in commercial agriculture.
The meeting also reviewed the performance of graduates' SACCOs. Issues like lack of National Identification Cards for some beneficiaries were noted as barriers to accessing funds. SACCO leaders requested a review of loan access requirements, suggesting that verified graduates without IDs should not be excluded from funding opportunities.
Several beneficiaries testified to the positive impact of the combination of vocational training and start-up capital on their lives. However, they also expressed concerns over inadequate loan amounts, which they argued were insufficient to cover business start-up costs. Despite these challenges, many graduates reported enhanced confidence, new opportunities, and improved community standing.
Local leaders commended the program's focus on mindset change, which has fostered disciplined and responsible graduates. They suggested extending similar engagements to community leaders to enhance program effectiveness and reduce politicization.
The stakeholders meeting was part of State House's ongoing assessment of the skilling hubs, graduate SACCOs, and model farms, gathering feedback from beneficiaries and local leaders. President Museveni introduced the revolving fund to address graduates' concerns about the lack of start-up capital despite acquiring vocational skills, with the government injecting Shs50 million into each district graduates' SACCO for loan distribution.