The Ruhaama county Member of Parliament Hon Moses Kahima has cautioned local entrepreneurs against running to commercial banks for loans asking them to opt for government funding that attracts low interest rates and adjust to seasons.
Speaking during the annual music concert, dedication mass and top class graduation ceremony for pupils at Brilliant Kindergarten and Brilliant Twinkles schools in Ntungamo town, Hon Kahima said government has put aside money through the micro-finance support centre and is lying idle while businessmen are struggling with bank loans giving them headache.
“Government should be working to help entrepreneurs like these ones, who employ many local people, who give services the government should be giving. However many business men, local entrepreneurs are suffering because they lack knowledge on what the government is giving.” Mr Kahima said.
“A fund has been put up through the micro-finance support center that offers loans ranging between Ushs 50 M and 2 billion with only 1% interest rate, providing grace period and scheduling facility according to season like not adding interest during school holidays but I see you are failing business because of banks, don’t go for banks when government is offering you money.” Hon Kahima said.
He said many would be skyrocketing businesses have since failed because of poor loans from Banks, also blaming entrepreneurs for failing to acquire knowledge on government funding or fear of taxation that fail them to fulfill registration thus may not qualify for funds.
Brilliant schools that has primary schools and pre primary schools in Ntungamo municipality and Ruhaama is currently the largest education investment in the district employing over 200 employees.
Mr Kahima’s comments followed a complaint by the schools director Mr Kizza Fedelis over high cost of loans in commercial banks which he said is crippling investment and making them regret why they are investing in such business ventures.
The bank of Uganda recently reduced the bank rate however businessmen still think this may not affect the interest on loans as banks have been always defiant in reducing interest on loans borrowed on an earlier rate.
115 pupils graduated from top class to Primary one while 16 pupils were dedicated to the forth coming primary leaving examinations