Financial literacy experts have been urged to support parishes in the implementation and execution of the Parish Development Model (PDM) and other government projects.
Speaking at the Uganda Financial Literacy Association’s (UFLA) 1st Anniversary Celebrations in Kampala, Moses Ogwapus, Commissioner of Financial Services at the Ministry of Finance, asked members of the association involved in financial literacy and various financial services to support the parishes in using the funds disbursed by the government responsibly.
He noted that many of the recipients lack the financial knowledge and sophistication needed to utilize the money effectively.
“I assume most of you come from villages or parishes where Shs100 million has been disbursed. Within five years, your parish would have received 500 million. Just imagine if that money was used responsibly and constructively. It would obviously transform lives in your communities.”
“The responsibility falls on us who are more informed and exposed to help them. Use this money to help them save and invest it responsibly. Of course, some of them may not be responsible, as we have seen. They will buy alcohol, mattresses, etc., because that’s what they needed most at the time,” he said.
Ogwapus emphasized that the government has empowered citizens and stimulated their sense of belonging to the financial system.
“What we have succeeded in doing is creating financial agents in the parishes. But we are calling upon you to support this initiative by educating people in the communities on how best to utilize this money. The government’s commitment to provide 100 million shillings per parish for the next three years, and possibly longer, is real,” he said.
On his part, Daniel Ayebare, UFLA chairperson, revealed that financial literacy couldn’t be more critical than it is today, explaining that money is being given to people who have no idea how to manage it.
“For example, if someone deep in the village has never held Shs100,000 and today you’re giving them 1 million or 2 million, the excitement alone might overwhelm them. So, the idea should be that these people are trained in handling money before the money actually reaches them,” he said.
He noted that the government and development partners have recognized the importance of financial literacy in PDM, where it is a key component.
“Though it should have been done earlier before the money was sent, it is something that the government and partners are trying to catch up with. Financial money is not managed well today,” he said.
PDM was launched by President Yoweri Museveni on February 26, 2022. In FY 2021/22, 7,855 PDM SACCOs in 151 LGs were capitalized with UGX 72.192 Bn. In FY 2022/23, 10,585 PDM SACCOs were fully capitalized with UGX 1.0585 Trillion, and in FY 2023/24, 10,583 PDM SACCOs have been capitalized as of April 2024 with UGX 50 million each.
Ogwapus stated that the balance of UGX 50 million to be transferred in May 2024, arrears from previous FYs, shall be provided to the PDM SACCOs in future years, subject to the availability of funds.
He revealed that the government is implementing a Presidential Initiative on Wealth and Job Creation, focusing on Emyooga (18 specialized enterprises) through savings.
As of FY 2022/23, the government has sent funds to MSC totaling UGX 480 bn for the benefit of Emyooga SACCOs, and at least UGX 76.3 bn in savings have been mobilized so far.
He noted that financial literacy can inspire entrepreneurship in Uganda by helping citizens understand how to start and manage businesses, access funding, and navigate financial risks.
Ogwapus added that empowering people with financial knowledge can help break the cycle of poverty.
“Individuals can learn to manage their resources more effectively, access financial services, and build assets that contribute to long-term economic security. Financial literacy is essential for ensuring economic transformation is inclusive,” said Ogwapus.