Music promoters receive Shs10 billion Museveni pledge from MSC

The Microfinance Support Centre (MSC) has released Shs10 billion pledged by President Yoweri Museveni to music promoters and event organisers, paving the way for beneficiaries to start accessing loans.

MSC announced the release on Friday during a special general meeting of the Uganda Music Promoters SACCO at Pope Paul Memorial Hotel in Ndeeba, Kampala.

The money will benefit promoters under three SACCOs at an annual interest rate of eight per cent.

Uganda Music Promoters SACCO chairman Abbey Musinguzi, popularly known as Abitex, said his group had received Shs2.6 billion from the latest allocation. Another Shs 1.5 billion had been disbursed to the group earlier.

“Today we had a special general meeting to inform the members that we have finally received the money that the President pledged to us and we are now ready to start disbursing it,” Musinguzi said.

“The meeting granted us permission to start the disbursement, in accordance with each member's capacity. A team is moving around to determine whether each member’s loan request is one they can handle and pay back.”

Abitex further warned the Sacco members: “This is not free money and the government through MSC will be tracking the utilisation of these funds because this is taxpayer money.”

He added that MSC would audit beneficiaries to establish how they use the funds.

Uganda Music Promoters SACCO has more than 250 members. Musinguzi said sharing the available money equally would leave each promoter with a small amount that may not meet their business needs.

He therefore asked the government to inject more money into the fund, arguing that events create jobs, generate taxes and provide income for artists and other businesses.

MSC spokesperson Tadeo Atuhura said the agency had fulfilled the pledge Museveni made to music promoters and event organisers last year.

The other two SACCOs who are sharing the pledge are United Music Promoters SACCO and National Events and Bivulu Promoters Multipurpose Cooperative.

Regarding the in-fighting that affected the operations of the groups in the past, Atuhura said MSC first trained SACCO leaders on the importance of unity and cohesion.

“We have empowered all the three SACCOs and they have realised that uniting will lead them to development. They have agreed to put aside conflict and work together,” he said.

The training also covered financial literacy, savings, enterprise management, leadership and governance.

Atuhura said MSC would continue working with the three groups to strengthen their operations and reduce internal conflicts.

Uganda Music Promoters SACCO general secretary Balaam Jojo said the group had created a loans committee to scrutinise applications.

He said the committee would assess each promoter's business and ability to repay instead of approving every amount requested.

“We shall be able to know that even though someone requested Shs50 million, his capability can only handle Shs20 million,” Jojo said.

He also appealed to Museveni for additional funding, saying the industry has a large number of promoters across the country.