Posted on November, 1, 2016 at 10:30 am
By ALFRED TUMUSHABE
Microfinance Support Centre (MSC) has launched a new product for agro-inputs loans at an event was held at MSC’s south-western regional offices in Mbarara.
The product is intended to finance farmer’s acquisition of agro-inputs such as seed and seedlings, agro-equipment such as spray pumps and irrigation tools, fertilisers and agro-chemicals such as acaricides, pesticides and herbicides, as well as packaging materials.
The director credit and operations at MSC, Thomasmore Katutsi, said Shs1b is currently available for lending as more funds become available.
“For the start we have Shs1b for this product, we are targeting the agro in put dealers who are close to rural farmers.”
He added that this is targetted at savings and credit cooperative organizations, cooperative unions, small and medium Enterprises, farmer groups and sole proprietors.
Borrowers can acquire a minimum of Shs5m and the interest rate is one per cent per month. The loan repayment is up to four years and the borrowers can repay monthly, quarterly and seasonally.
Gen. Salim Saleh, coordinator of Operation Wealth Creation, who presided at the launch, remarked Shs1b is “a drop in the ocean” and that more credit should be availed for agriculture lending.
“We (OWC officials) together with Mbarara University did research and found that we need Shs300b for coffee sector alone in this region.
This is before you talk about milk, banana and tea (sectors).Now you have come running with Shs 1 billion. I am appreciative but I am not satisfied, we need more,” said Gen Saleh.
The research on financing coffee production in south western Uganda was conducted by Institute of Interdisciplinary Training and Research at Mbarara University of Science and Technology was conducted in September.
Source: Daily Monitor