KAMPALA — President Yoweri Kaguta Museveni has fulfilled his pledge to provide Shs10 billion to Uganda’s music promoters, with the funds now transferred to three promoters’ savings and credit cooperatives.
The money was delivered through the Microfinance Support Centre (MSC), which was tasked with implementing the President’s commitment to the entertainment industry.
The fulfilment of the pledge was announced during the Annual General Meeting of the music promoters held at Pope Paul Memorial Hotel in Ndeeba, Kampala, where beneficiaries welcomed the release of the funds and thanked the President for honouring his commitment.
The pledge was made by President Museveni during a meeting with entertainment industry stakeholders at Kololo Ceremonial Grounds last year.
Tadeo Atuhura, Head of Communications at MSC, said the institution had completed its role of delivering the funds to the beneficiaries.
“Today, we are here specifically to deliver the pledge of His Excellency, the President. The President did commit and pledged to offer an affordable grant to the entertainment team. These are the Saccos, the promoters. And he promised Shs10 billion, and I want to confirm today that the Shs10 billion has been given to the Saccos,” Atuhura said.
The funds have been wired to the accounts of Kampala and Beyond United Music Promoters Saving and Credit Cooperative Society, National Events and Bivulu Promoters Sacco, and Uganda Music Promoters Sacco, led by music promoter Abbey Musinguzi, popularly known as Abitex.
Musinguzi said the promoters had received the money promised by the President and would use it to strengthen the entertainment industry.
“I take this opportunity to inform the public that the money which was pledged by President Museveni has been received. This money totals Shs10 billion, which has been disbursed to three Saccos,” he said.
He said the promoters intend to invest the funds in activities that can expand the music industry and generate employment.
“We pledge to use this money to develop the music industry, which will in return give many people jobs,” Musinguzi said.
The beneficiaries said access to the funds would also provide an alternative to commercial money lending, which some promoters have relied on to finance their activities.
Jojo Balaam, General Secretary of the Supervisory Committee of Uganda Music Promoters Saccos, said the money had been released in phases, with Shs1.5 billion initially provided before the balance was released.
“He first gave us Shs1.5 billion in the first quarter. Then, after we came through the ups and downs, finally he gave us the balance,” Balaam said.
He said promoters had previously faced difficulties obtaining affordable financing and expressed appreciation for the funds now available through their Saccos.
“It’s because we have been going through money lending processes; they have been taking our things. But right now, Sacco has money,” he said.
MSC prepares beneficiaries
While delivering the funds, MSC said its role had gone beyond transferring the money, with the Centre providing training intended to help the beneficiaries manage the Saccos and invest the funds.
Atuhura said promoters had received training in financial literacy, savings, investment, shareholding, enterprise management, leadership and governance.
“We have trained them in financial literacy. We have trained them in the aspect of saving together that makes the membership really grow. We have trained them in terms of enterprise management: which projects are you going to run?” he said.
He said the three Saccos had also developed guidelines and bylaws to regulate their operations. “Saccos are member-led. The decisions are by the members,” Atuhura said.
According to Atuhura, the training was intended to ensure that the beneficiaries have the institutional capacity to manage the funds and make decisions collectively.
He said MSC would continue working with the promoters through training and guidance as they implement their plans.
“We pledge as Microfinance Support Centre that we will continue to work with them, to support them, to train them, and ensure that they can use their funds very well,” Atuhura said.
Balaam said the financial literacy support was important for the promoters as they begin managing the funds. “They have given us lectures. They are still giving us lectures, both the leaders and the members at large,” he said.
The Shs10 billion grant is separate from MSC’s conventional lending programme, under which the institution provides financing through organised groups, Saccos and associations.
MSC’s lending programmes provide affordable credit at an annual interest rate of 8 per cent, while capacity-building services are provided to beneficiaries to strengthen their ability to manage enterprises and financial organisations.