Roadside Business Loans Spur Trade In Nebbi

NEBBI – Loans may keep some people sad and trapped in a cycle of debt, especially when they outpace one’s savings.

But Agnes Akumu, 45, a roadside clay pot dealer, is all smiles, years after taking up a ‘roadside business loan.’

“My life is transformed ever since I started accessing the roadside business loan from the SACCO. This has inspired me to do other side businesses, which have increased my capital base from Shs 50,000 to Shs 800,000 with a low loan interest rate of 8%,” Akumu, a resident of Akworo Village in Nyaravur trading center, said in a recent interview.

https://thecooperator.news/nebbi-municipality-battles-to-recover-women-entrepreneurship-funds/

She’s largely a clay pot dealer and grinds stone along Nyaravur-Pakwach Road. She’s one of the many excited beneficiaries of the small roadside business loans.

Though her business is accident prone given its proximity to the Nyaravur –Pakwach Road, Akumu says the success outweighs the risks. She says she has been able to pay school fees for her children and support her family all the way.

She said she has also been able to buy two acres of land using profits from her business.

Clay pots, she said, are in demand largely for decoration and for cooling water. She said they are a very lucrative business.

Roadside businesses are small scale enterprises plied along the road targeting travelers who buy small items as they move from place to place.

Roadside business loans were introduced by Nyaravur Farmers’ Savings and Credit Cooperative Society, three years back.

Akumu said roadside business traders have also applied for Emyooga funds but are yet to get any firm nod of approval.

But the roadside business loans have improved the livelihoods of many and some are now applying for bigger loans.

According to business experts, roadside business loans are seed capital, given to business people doing roadside businesses.

Richard Okumu, the manager Nyaravur SACCO, said at least 70% of borrowers of roadside loans are women who have embraced the initiative and are responding positively.

In the past, he said, loans were given to very rich business men who owned very big shops but that has since changed.

He said the maximum loan given to roadside business persons is Shs 300,000 since roadside traders deal in small items.

David Muswa, the commercial officer, said women are very focused business people and are committed to paying back borrowed funds.

He urged financial institutions to carry out financial literacy trainings for well-focused women to help lift their businesses.

“As commercial officers at the district, we feel much privileged to see the roadside business women being uplifted and their livelihoods improved.” Muswa said.

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Street Vending Empties Hoima Central Market

HOIMA – One-by-one, vendors are walking out of a fast emptying Hoima Central Market and pouring onto the crowded city streets to sell their merchandise easily.

The abandoned lockups are mainly on the second and the third floor of the storied facility built under the Markets and Agriculture Trade Improvement Project – MATIP.

The Shs 11 billion project was funded by the African Development Bank –ADB. About 100 lock-ups are occupied out of the available 180.

The market has over 800 registered vendors. theCooperator has however, learnt that a number of vendors are abandoning the lock-ups because customers are buying from the streets.

Henry Kyarigonza, the chairperson of Kahoora Market Vendors SACCO, said the growing number of street vendors is under cutting their colleagues inside the market.

https://thecooperator.news/traders-cry-foul-for-missing-out-on-credit-over-sacco-management/

He said they have severally asked Hoima city authorities to intervene and force street vendors to operate in gazzeted areas without much success.

“This challenge is also forcing the remaining vendors in the market to abandon the facility and go on the streets since buyers are no longer coming to the market because they get what they need on the street,” he said.

“For example, we had allocated the eggplant sellers lockups inside the market but since they wait for the whole day without getting a customer, they have also moved out of the market to sell their produce on the street,” he said.

Some market vendors have demanded a tax waver, citing slow business and low sales brought on by the outbreak of the Covid-19 pandemic and unregulated street sales in the central business area of the city.

Many sellers have relocated to city streets including Bunyoro-Kitara and Byabacwezi Roads.

“Every place in the city has turned into a market, therefore I request authorities to force such sellers into the market as a business center for specific commodities other than trapping buyers outside of the market on streets leaving those inside without customers” Haruna Kasangaki, a vendor and SACCO member.

Godfrey Kutegeka, the chairman Hoima Central Market Traders Association, said vendors are pushed out of the market by high taxes.

He demanded a tax waver. He said a combination of slow business, slow sales, outstanding bank loans and tax arrears make it hard for them to pay tax and sustain their trade.

“The vendors have a lot of debts because business slowed down due to COVID-19 and they cannot pay taxes. This forces some to move out of the market and operate on the street,” he said.

Hoima City Clerk, Godfrey Mbamanyisa, insists that vendors must pay their arrears worth about Shs 200 million.

He says failing to pay tax implies a failure to deliver various services in the market like security, water and electricity among others.

“We are supposed to pay UMEME, National Water and Sewerage Corporation (NWSC) and other service providers such as cleaners and security are demanding Shs 42 million. Where should we get this money if the vendors are asking for tax wavers,” he asked.

Mbamanyisa said that soon they will evict all street vendors and hawkers.

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Amuru Builds Shs1.5bn Produce Stores

AMURU –To spur on-farm productivity and shore up the market for big volumes of agricultural commodities, Amuru District local government is constructing 11 produce stores worth about Shs1.5 billion for cooperative groups and farmer associations.

The 3,000 metric tons each capacity stores are being built in Atiak Sub County, one in Pabbo Sub County, four in the northern Amuru town council and three in Lamogi Sub County.

The beneficiary cooperatives include; Pupwonya Cooperative Society, Pabbo Rice Cooperative Society, Amuru Progressive Farmers’ Cooperative Society, Ojigi Cooperative Society in Amuru Sub County and Patopa Cooperative Society in Amuru district.

Samuel Kidega, the Amuru District commercial officer, said construction of the produce stores is funded under the Agriculture Cluster Development Project-ACDP program.

ACDP, which started in January 2012, is a partnership project between the Ministry of Agriculture, Animal Industry and Fisheries and the World Bank –financed by the bank’s International Development Assistance (IDA).

https://thecooperator.news/ministry-of-agriculture-to-construct-post-harvest-handling-facilities-in-57-districts/

The project, implemented in 57 districts across Uganda, aims to raise on-farm productivity, production, and marketable volumes of selected agricultural commodities (maize, beans, rice, cassava and coffee).

Kidega said farmers have been hiring small lockup shops in the trading center to store their produce.

Amuru District Production Officer, Okwonga Batulumayo said a lack of storage facilities in most sub counties in the district forced farmers to store their produce in their houses.

“Quality is usually compromised when farmers store their agricultural produce in the house,” Okwonga said.

The production officer said Shs 2.5 billion has been given to the district to construct roads linking storage facilities to the market.

“These roads will ensure that farmers do not waste too much money on transport to access the market for their produce,” He said.

Meanwhile, Geoffrey Orsbon Oceng, the Amuru Resident District Commissioner, urged farmers to own stores.

“The government is doing everything possible to help farmers move out of poverty by investing in projects that directly help them but they have to embrace the projects,” he said.

Amuru District has 15 produce stores already, which were constructed by non-governmental organizations but only one in Pabbo Kal in Pabbo Sub-County is fully operational.

Interviewed, Bartholomew Okwonga, the Amuru District Production Officer, said some farmers abandoned the produce stores because of poor handling of their produce in storage.

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Abapiri Farmers Lobby For Shs 400m Warehouse

KWANIA –Frustrated by how little farm produce they can stash away, a 450-member group of farmers allied with Abapiri Oil Seed Cooperative Society, in Abapiri Village, in Chawente Sub County, Kwania District is lobbying the government, well-wishers and donors for Shs 400 million to construct a warehouse.

The cooperative, which deals in soya beans, maize, simsim and other cereal crops plans to construct a store to bulk members’ farm produce for sale.

Stephen Otim, the chairman of the cooperative, said they have already procured land to build the warehouse but are still lobbying the government, well-wishers and donors for funds.

https://thecooperator.news/budget-kwania-cooperatives-get-shs-89m/

“We are grappling with the challenge of proper storage, however, the cooperative has a plan of constructing a big store estimated to cost Shs 400 million, we already have land but we are seeking support from the government,” he said.

He said the government should rehabilitate roads and provide irrigation systems to boost farmers’ production. Thomas Olal, a member of Abapiri Oil Seed Cooperative, is optimistic that construction of the warehouse will allow them to bulk their produce and sell at affordable prices to help members climb out of poverty.

Hellen Ayao urged the government to invest in different cooperatives in the country. She rallied people to join groups in order to benefit from the government programs.

“We lack a warehouse, I call upon the government to support us, we want to bulk our produce and sell at affordable prices as you know bulking is power. This will help us get a lot of money to eradicate poverty at the grassroots. I want to encourage people to join the group so that we benefit from the government program,” she said.

Patrick Bura, the Kwania District Commercial Officer, said in a telephone interview that; “Cooperatives have a potentially strong role in reducing poverty and social exclusion, and promoting national development. The government is yet to plan on how to support such cooperatives, but as of now they can write a proposal to the Africa Development Bank for financial support, yes as of now.”

Abapiri Oil Seed Cooperative Society started in 2017 as a Village Savings and Loan Association (VSLA) – largely to promote commercial agriculture and strengthen group marketing for increased household income. The Cooperative currently has a total of 451 members with 150 loan portfolios. However, it is operating without a proper storage facility.

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