By Thembo Kahungu
The Microfinance Support Centre has told Parliament that it will need extra Shs313bn as a recovery fund to help the revival of the over 1,700 Savings and Credits Cooperative Societies and 14,800 Villages Savings and Lending Associations which have been hard hit by the Covid-19 pandemic.
John Peter Mugenyi, the MSC Executive Director, told the Committee on National Economy that the money is needed as a stimulus package for the SACCOs and VSLAs in the 2020/21 Financial Year.
He said most of the savers whose small scale businesses have been affected by the lockdown had to run to the SACCOs and VSLAs to withdraw all their savings for survival.
He said part of the fund if availed to MSC, will be used to provide operational grants to extend technical assistance to the Saccos on the post Covid-19 management.
According to the proposal, Shs87.4b would be injected in Saccos with a membership of 1.7m people; Shs222.6b to the VSLAs benefiting 427,420 people; Shs1.7b to be disbursed in form of stabilization grants; and, Shs2b for administration.