Museveni Pledges Shs85bn Revolving Fund for Salon Operators

President Yoweri Kaguta Museveni has pledged to support salon operators across the country with a Shs85 billion revolving fund aimed at boosting their businesses and strengthening the informal economy.

The President made the commitment on Thursday at Kololo Ceremonial Grounds while officiating at the launch of the Federation of Uganda Salon Operators and Beauty Professionals.

President Museveni congratulated salon operators for the essential services they provide, noting that their role is increasingly important as urbanisation grows and people become busier.

Reflecting on the colonial era, the President said African identity and beauty were deliberately undermined.

“Africans were made to believe they were not beautiful and had to imitate Europeans,” he said, adding that this mindset has since been defeated. He noted that African beauty is now confidently embraced and celebrated in its diversity, particularly in the Great Lakes region.

He welcomed the development of locally made beauty products by salon operators, describing the move as a positive step towards self-reliance.

On financing, President Museveni explained that government support would be channelled through a revolving fund, with Shs100 million allocated annually to each SACCO. With about 850 SACCOs across the country, he said the total support would amount to approximately Shs85 billion per year.

“The revolving fund model has worked under the Parish Development Model,” the President said, explaining that beneficiaries borrow the money, invest it productively, and repay it with minimal interest.

He added that salon operators have a different business model from crop farmers under PDM, suggesting a shorter repayment period. “Instead of two years, salon operators can take the money for one year, use it and return it with a small interest,” he said.

The Deputy Speaker of Parliament, Rt. Hon. Thomas Tayebwa thanked the President for consistently supporting ordinary Ugandans, noting that many leaders often overlook the poor.

He also commended Gen. Salim Saleh and Operation Wealth Creation, saying his office was among the first to engage with and support salon operators. However, Rt. Hon. Tayebwa observed that although funds for groups such as salon operators are often provided for in the national budget, they are sometimes not released by responsible institutions, particularly the Microfinance Support Centre.

The Minister of State for Youth and Children Affairs, Hon. Balaam Barugahara, said the informal sector extends beyond salon operators to include tailors, artisans and other small-scale entrepreneurs across the country. He urged the youth to continue supporting President Museveni, saying his leadership remains critical to lifting Ugandans out of poverty.

The Chairperson of the Federation of Uganda Salon Operators and Beauty Professionals, Mr Kamanyire Celestine, thanked the President for prioritising grassroots entrepreneurs.

He asked the President to formally launch the federation’s 850 SACCOs, grant the organisation a clear operational mandate, and ensure financial support of at least Shs100 million per SACCO, noting that each SACCO has more than 50 members. He also appealed for the establishment of a common user facility to support the industry.