PostBank Uganda has committed Shs. 200 million towards the continuation of its partnership with the Federation of Small and Medium Sized Companies (FSME), aimed at equipping Small and Medium Sized Enterprises (SMEs) countrywide with value addition and financial literacy skills.
Code named “Gattako Omutindo”, the program targets different agribusinesses with the aim of addressing some of the binding constraints that hinder them from being competitive.
The FSME Executive Director, John Walugembe, says this is done in line with government’s development programs such as the Parish Department Model and the National Development Plan, that promote value addition to pull 39% of Uganda’s population trapped in substance production.
“We want to ensure that 39% of Ugandans, who are still trapped in abject poverty, are able to rise and take part in the market economy. The Federation of SMEs has prioritized supporting agribusinesses to grow,” said Walugembe.
The partnership between PostBank Uganda and FSME, first established in 2022 with a donation of Shs. 80 million, highlights their commitment to support the socio-economic transformation of Uganda, particularly within the agribusiness sector.
Through the previous program, the Bank successfully trained 500 small and medium enterprises in northern and western Uganda in agro-processing, business, and financial literacy.
“We have trained SMEs in Mbarara on adding value to milk and creating different products like yoghurt. We work with SMEs here in Kampala to add value to fresh fruits and vegetables, and we are able to make tomato sauce and juices. We were able to work with SMEs in Lira to add value to maize. How do we ensure that our maize is free from aflatoxins. This year, we are continuing with the same campaign,” said Walugembe.
He added: “We are going to have trainings in Soroti, where we are going to train SMEs on how to add value to millet. We are going to have trainings in Koboko, where we are going to support SMEs to add value to cassava. What we are doing is, that we identify specific value chains in specific regions and our support is tailored to supporting SMEs in those areas.”
President Museveni has severally campaigned for value addition on Uganda’s raw materials and an end to the export of raw materials, which occurs at relatively low prices and results into the importation of manufactured goods at relatively high prices. This makes it difficult for Uganda to generate the export earnings it needs to finance its development.
“A non-coffee producing country like Germany, earns $6.85 billion [in coffee]! This is part of the implications of the global parasitic system. In the last 60years, I have been involved in the struggle against this modern slavery for Africa – the curse of producing raw-materials for cleverer people in the world to add value to those raw- materials and get much more value from them. A kilogram of bean coffee of good quality, may go for $2.5 per kg. The same quantity of coffee roasted, ground and packaged may go for $40. This is where there is massive hemorrhage of money from the global South to the global North,” Museveni said recently.
Peter Ssenyange, the Chief Finance Officer at PostBank, said that the focus on Micro, Small, and Medium Enterprises (MSMEs) aligns with Uganda’s economic structure, where the majority of SMEs are involved in the agribusiness value chain.
“By equipping Agri-SMEs with essential skills in agricultural value addition, post-harvest handling, good manufacturing practices, and financial literacy, we aim to enhance their productivity, competitiveness, and sustainable business practices” he said.
The 2024 program will target over 700 SMEs in Soroti, Koboko, Kabarole, and Kampala districts, chosen based on their potential for impact.
Priscilla Akora, the Head of Marketing and Communications at PostBank, encouraged all small business owners in these districts to register for this program for free at the nearest PostBank branch.
Each training session, facilitated by experienced trainers from FSME, will focus on key aspects of Agri-SME development, including millet and cassava processing, agro- tourism, coffee value addition, and financial literacy.
The program uses practical sessions and financial literacy to teach small business owners value addition using readily available raw materials, bookkeeping and financial management, as well as how to grow the market for their products.
“We are a Bank that strongly believes in deepening social impact and generating value for all, and this partnership is proof of our commitment towards improving the lives and livelihoods of Ugandans” Akora said.
Since PostBank is fully owned by the government, Akora said that the financial institution is very intentional about supporting the government in bringing more Ugandans to the money economy.