The government calls on financial education experts to guide the use of the PDM

Financial education 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 first anniversary celebrations of the Uganda Financial Literacy Association (UFLA) in Kampala, Moses Ogwapus, Commissioner for Financial Services at the Ministry of Finance, called on members of the association involved in financial education and various financial services to support to the parishes in the use of the funds. disbursed by the government responsibly.

He noted that many recipients lack the financial knowledge and sophistication needed to use the money effectively.

“I assume most of you come from towns or parishes where Sh100 million has been disbursed. In five years, his parish would have received 500 million. Imagine if that money was used responsibly and constructively. “It would obviously transform lives in their communities.”

“The responsibility falls on us who are more informed and exposed to help them. Use this money to help them save and invest responsibly. Of course, some of them may not be responsible, as we have seen. They will buy alcohol, mattresses, etc., because that is what they needed most at that time,” he stated.

Ogwapus emphasized that the government has empowered citizens and encouraged their sense of belonging to the financial system.

“What we have achieved is to create financial agents in the parishes. But we ask that you support this initiative by educating people in the communities on how best to use this money. The government’s commitment to provide Sh100 million per parish over the next three years, and possibly more, is real,” he stated.

For his part, Daniel Ayebare, president of the UFLA, revealed that financial education could not be more critical than today, explaining that money is given to people who have no idea how to manage it.

“For example, if someone deep in the village has never had 100,000 shillings and today you are giving them 1 million or 2 million, the emotion alone could overwhelm them. So the idea should be that these people are trained in money management before the money reaches them,” she said.

He noted that the government and development partners have recognized the importance of financial education in PDM, where it is a key component.

“While it should have been done before the money was sent, it is something the government and its partners are trying to achieve. Financial money is not managed well today,” he stated.

PDM was launched by President Yoweri Museveni on February 26, 2022. In the fiscal year 2021/22, 7,855 SACCOs of PDM in 151 LGs were capitalized with UGX 72.192 billion. In fiscal year 2022/23, 10,585 PDM SACCOs were fully capitalized with UGX 1.0585 trillion, and in fiscal year 2023/24, 10,583 PDM SACCOs were capitalized until 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 years, will be provided to 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 companies) through savings.

As of fiscal year 2022/23, the government has sent funds to MSC totaling 480 billion UGX for the benefit of Emyooga SACCOs, and at least 76.3 billion UGX in savings have been mobilized so far .

He noted that financial education can inspire entrepreneurship in Uganda by helping citizens understand how to start and manage businesses, access finance and deal with financial risks.

Ogwapus added that empowering people with financial literacy can help break the cycle of poverty.

“People can learn to manage their resources more effectively, access financial services and create assets that contribute to long-term economic security. Financial education is essential to ensure that economic transformation is inclusive,” Ogwapus said.

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