Government has released Shs10 billion to support Uganda’s entertainment industry, with three music promoters’ Savings and Credit Cooperative Societies (Saccos) benefiting from the financial package pledged by President Yoweri Museveni.
The funds, disbursed through the Microfinance Support Centre (MSC), are intended to provide music promoters with access to affordable financing to expand their businesses, invest in entertainment-related enterprises and create employment opportunities.
President Museveni pledged the funds last year during a meeting with music promoters and other players in the entertainment industry at Kololo Ceremonial Grounds.
The money has since been disbursed to three promoters’ Saccos: Kampala and Beyond United Music Promoters Savings and Credit Cooperative Society, National Events and Bivulu Promoters Sacco, and Uganda Music Promoters Sacco, led by prominent promoter Abbey Musinguzi, popularly known as Abitex.
The disbursement was confirmed during the promoters’ Annual General Meeting held at Pope Paul Memorial Hotel in Ndeeba, Kampala.
Speaking at the meeting, Musinguzi, who chairs Uganda Music Promoters Sacco, said the funds would be used to strengthen the entertainment industry and create jobs.
“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,” Musinguzi said.
“We pledge to use this money to develop the music industry, which will, in return, create jobs for many people.”
Musinguzi also acknowledged divisions that have existed among music promoters, saying the funding should instead encourage greater cooperation within the industry.
“We’ve been having a number of divisions amongst us, but we believe that, with guidance from the Microfinance Support Centre, this money will not divide us,” he said.
The government funding comes as music promoters seek alternatives to commercial lenders, whose financing costs they say have made it difficult to sustain their businesses.
Jojo Balaam, General Secretary of the Supervisory Committee of Uganda Music Promoters Saccos, said the promoters approached the Government for support after experiencing challenges associated with commercial borrowing.
“Why we requested President Museveni for these funds? It’s because we have been going through money-lending processes; they have been taking our things. But right now, the Sacco has money,” Balaam said.
According to Balaam, Shs1.5 billion was initially released during the first quarter, with the remaining funds subsequently disbursed.
“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,” he said.
Balaam said members were now expected to save and manage the funds through their respective Saccos, with financial literacy support from the Microfinance Support Centre.
“They have given us lectures. They are still giving us lectures, both the leaders and the members at large,” he said.
The Microfinance Support Centre says its role extends beyond disbursing the funds. Beneficiaries are also being trained in financial management, savings, investment, enterprise development and Sacco governance.
Tadeo Atuhura, the Communications Manager at MSC, said the institution chose to channel the funding through organised groups rather than individuals to increase its potential economic impact.
“As Microfinance Support Centre, we do not give funds to individuals. We give funds to Saccos, we give funds to groups, we give funds to associations. Why? It’s because we know these are sustainable. We know that then you will benefit more people than an individual,” Atuhura said.
He said the promoters had undergone training before receiving the funds.
“We have trained them in financial literacy. We have trained them in the aspect of saving together, which makes the membership really grow. We have trained them in terms of enterprise management—which projects are you going to run. We have also been able to train them in leadership and governance,” he said.
Atuhura confirmed that the Shs10 billion pledged to the entertainment sector had been released to the three Saccos.
“The President did commit and pledge 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, the Shs10 billion has been given to the Saccos,” he said.
“They have the money, and they will be able to give this money to the members.”
The three Saccos are expected to use the funds to expand members’ enterprises while strengthening savings and collective investment among music promoters.
Atuhura said the Microfinance Support Centre would continue working with the Saccos through training and support to ensure the funds are properly managed and contribute to wealth creation.
“We pledge as Microfinance Support Centre that we will continue to work with them, to support them, to train them, and ensure that they are able to use their funds very well,” he said.
