SMEs call for harmonised criteria to access development funds

The Federation of the Small and Medium Sized Enterprises (F-SMEs) has raised concern about the low uptake of the Shs3 billion from the Islamic Development Bank meant for businesses and enterprises for each district through the Uganda’s Local Economic Development Policy.

According to the Executive Director of the SMEs, John Walugembe, the government did not carry out extensive sensitization, arguing that the criteria used to access the money should be reviewed.

Funded by the Islamic Development Bank, Alebtong District, just like other districts benefiting from Uganda's Local Economic Development Policy, received Shs3 billion to help recapitalise local communities operating businesses and enterprises by getting loans through Micro Finance Support Centre.

In Alebtong, for example, the money still remains unused, with only 18 people being able to access Shs169,816,000.

This means that Shs2.8 billion is still idle with Micro Finance Support Centre which has raised concern from the federation of small and medium enterprises.

Walugembe believes there should be a more organised criteria to access the funds, a call augmented by the Local Government minister Raphael Magezi.

“let the District commercial officers harmonize the criteria’s for accessing this money, because if we keep on taking back the funds it’s us who are losing not the funders," walugembe said.

The five-year project which is meant to offer business loans to small and medium enterprises, ends next year.