The government of Uganda has begun recording early recoveries under the Parish Development Model (PDM), with repayment trends showing steady progress across the country.
The update came during a three-day national workshop hosted by Enterprise Uganda, which convened government officials, development partners, and parish-level actors to review the implementation of the flagship program and strengthen coordination of its interventions.
The PDM, launched as a government initiative to stimulate development at the parish level, seeks to empower communities through targeted financial support, technical guidance, and training, to reduce poverty and improve local service delivery.
Speaking at the workshop, Mr Dennis Galabuzi, the national coordinator of PDM, emphasised that the program’s success should be measured by the impact on communities rather than popularity or political approval. ‘Even in heaven with all angels, there will always be a bad angel. There will be naysayers, but we are not looking for populism. We are focusing on the people who are benefiting on the ground,’ he said.
He highlighted that government assessments indicate the program is performing well, estimating success levels between 70 to 80 percent, and urged critics to help identify gaps and contribute to solutions rather than simply lamenting challenges.
Mr Galabuzi confirmed that recoveries are already coming in, noting that the first borrowers’ grace periods ended in June 2025. ‘We have so far seen repayment movement in 143 local governments out of 176, and the trend is upward. We are not using coercion; rather, we rely on persuasion, emphasizing that these funds are for the good of the community,’ he said.
Under the PDM, funds are released biannually, with 50 million shillings per parish disbursed in December/January and another 50 million in June. Each tranche benefits at least 50 households per parish, providing capital to invest in agriculture, small businesses, and community development initiatives.
Galabuzi emphasized the importance of community responsibility, stating that while the government provides the funds as a grant, proper management rests with the parish community. ‘We are hands-off, eyes-on. If people mismanage their parish banks, it is the community that loses,’ he said.
A major component of the PDM is the establishment of practical training centers in every parish. Here, beneficiaries receive hands-on instruction in agriculture, business planning, and financial management. Training is tailored to specific enterprises, such as coffee production, and includes guidance on creating business plans, budgeting, and implementing good agricultural practices.
The program also introduces community-based facilitators who serve as local links to quality inputs, markets, and agricultural services such as plowing, irrigation, and weeding. This approach builds local capacity and ensures technical support reaches households directly, addressing a shortfall noted in previous wealth creation programs.
Mr Edward Katende, the Executive Director of the Uganda Development Forum, said that the PDM has succeeded in moving Shs3.3 trillion from central government coffers to parishes, ensuring that the funds reach intended beneficiaries. ‘The money can leave Kampala and reach not only the parish but the people. The key challenge now is sustainability-ensuring that the capital is used effectively to generate the desired impact,’ he said.
To curb mismanagement, the PDM incorporates digital tracking systems, including GIS mapping and the Zaidi application, which documents each borrower’s business and household. This allows authorities to verify that businesses exist and are being properly managed, ensuring transparency and accountability for all 3.3 million participating households.
‘This is a major improvement from previous programs, where tracing beneficiaries and tracking fund usage was a challenge. Now, every household is identifiable, and we can follow up to ensure funds are used responsibly,’ Galabuzi said.
The PDM adopts a ‘finance plus’ model, which aligns capital provision with technical assistance. Loans are structured with interest rates set at six percent, and grace and repayment periods are matched to the gestation periods of the respective businesses. This integrated approach ensures that beneficiaries not only receive capital but are also equipped to invest it effectively, reducing the risk of default and enhancing returns to the community.
Another key component of the PDM is parish action planning, which empowers communities to identify their development priorities based on local data. Parish chiefs collect information on local economic conditions, enabling parishioners to make informed decisions about resource allocation. The priorities identified at the parish level feed into government budgeting, ensuring that national resource allocation reflects real local needs.
The workshop served as a platform to share successes, identify challenges, and strengthen coordination among stakeholders. Officials emphasized that continued training, local facilitation, and digital monitoring are critical to sustaining the program’s impact.
Galabuzi concluded by urging local leaders to actively support their communities in implementing PDM activities. ‘We are producing, introducing capital, providing technical support, and developing local facilitators. Now, the future of the program rests in the hands of parish communities,’ he said.