In a bid to boost small-scale businesses in Lira City, the Minister of Labour, Gender and Social Development, Hon Betty Amongi, also the the Woman Member of Parliament for Oyam South Constituency has announced a 300 million loan program for local entrepreneurs.
The loan was unveiled during an event held at the Lira City Mayor’s Garden on Friday 28th July 2023, where Minister Amongi distributed salon and tailor equipment to 200 trained female youths.
Interested beneficiaries will have access to the loan, which comes with a 10% interest rate and a repayment period of one year. To qualify, business owners are required to form groups consisting of five to thirty members. This measure aims to facilitate easier monitoring of the beneficiaries’ performance and ensure proper utilization of the funds.
Speaking at the event, Minister Amongi emphasized the importance of financial support for small-scale business owners in order to enhance their capital and stimulate business growth. Various businesses, including broom vending, boiled groundnuts, yellow bananas, avocado, and pancake production, fall under the scope of this initiative.
“These women, who carry buckets with edible items on their heads and engage in various small-scale enterprises, require financial assistance not only to develop their businesses but also to meet basic needs such as rent and education expenses for their children. Since they lack land titles or collateral to access traditional bank loans, I am committed to supporting them until they can qualify for such loans,” stated Minister Amongi.
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She urged the women to form organized groups to simplify the loan application process while also enabling effective monitoring of the beneficiaries. Minister Amongi also promised additional funding of 500 million after six months if the initial loan is utilized efficiently.
Local business owners expressed their eagerness for the loan program. Margrate Akany, a locally baked bread vendor, much-admired the initiative, stating that forming groups would improve their chances of accessing the loan and increasing their business capital.
Susan Adongo, a banana vendor, highlighted the potential economic and social development opportunities that would arise from the loan.
Meanwhile, Tom Richard Okello, the Lira City Community Development Officer, called on Minister Amongi to extend further assistance to more individuals, particularly women and youth. He stressed that many people from different regions of Uganda migrate to Lira City in search of better opportunities and livelihoods.
The loan program introduced by Minister Betty Amongi is expected to provide much-needed support to small-scale business owners in Lira City, empowering them to expand their enterprises and contribute to local economic growth.
