Beneficiaries of the Parish Development Model (PDM) in Kabarole District have asked the government to review the selection of recipients, arguing that people who already have enterprises are better placed to turn the government financing into sustainable businesses.
The beneficiaries, who have invested their PDM funds in onion growing, poultry and piggery, say the money has helped them expand enterprises they were already running to generate more income and invest in other businesses.
They, however, say the success of their enterprises has largely depended on prior experience, access to markets, availability of inputs and their ability to inject additional capital.
Mr Patrick Mugume, a resident of Busaiga Village in Harugongo Sub-county, Kabarole District, received Shs1 million under PDM in 2023, which he invested in an onion growing enterprise he had started years earlier.
He says he used the money, which he received through the Busaiga Sacco, to expand his garden from one acre to 2.5 acres.
‘When I received PDM money, I bought seven sacks of onion seedlings at Shs75,000 each, totalling to Shs525,000. I used the remaining balance to prepare the garden and nursery bed. For the first season, I planted onions on 1.5 acres,’ he said.
Mr Mugume said he acquired additional money to buy pesticides and pay labour for weeding. After harvesting and selling his onions, he made Shs9 million.
He said the returns encouraged him to expand the enterprise. The following season, he increased the seedlings from seven to 12 sacks, investing Shs900,000 in total.
Mr Mugume says each season, he harvests between 25 and 30 sacks of onions. To improve his earnings, however, he sells the onions in bundles.
In the last season, mid this year, he said he was selling a bundle at Shs4,000, and he made Shs19 million.
Since receiving the PDM money in 2023, Mr Mugume said he has had four harvesting seasons. He made Shs9 million in the first season, Shs15 million in the second, Shs17 million in the third, and Shs19 million in the fourth.
Mr Mugume said he used proceeds from the onion business to buy a plot of land and venture into dairy farming and poultry.
It is against this background that Mr Mugume suggested that the government should consider reforms in selecting PDM beneficiaries, arguing that people who already have enterprises should be prioritised.
‘If someone is poor and you give them Shs1 million, they will prioritise paying debts, but if someone has a business, the PDM money will be additional to his capital. I am now preparing my garden; the investment for this season is: 14 sacks of seedlings at Shs1,050,000, Shs1 million on pesticides and about Shs700,000 on weeding,’ he said.
Likewise, Mr George Mutabazi, a farmer from Kaihokwa Village in Kabarole District, said from the Shs1 million he received under PDM, he used Shs400,000 to buy a piglet, while the rest of the money went towards feeds and constructing its shelter.
He said the pig has since given birth five times, and he has been able to raise over Shs4 million from piglet sales, part of which he used to improve the shelter and acquire others. He now has more than 30 pigs.
Mr Friday Patrick, a poultry farmer from Kirere Village in Kabarole District, said he received Shs980,000 under PDM in 2023.
By the time he received the money, he already had about 200 chickens at home, but his immediate challenge was the feeds.
‘When I received the money, I waited for maize farmers to harvest, and after I bought two tonnes of maize feed and stocked up. I have layers and they have since increased to 850,’ he said.
He said having enough feed helped him maintain his poultry enterprise and increase egg production. He now collects between 20 and 24 trays of eggs a day, with each tray selling at Shs12,500.
Like the other beneficiaries, Mr Patrick believes PDM works better for people who already have experience in an enterprise.
‘People who have not benefited from PDM are those who selected an enterprise after receiving money. But for us who are successful, it is because we have experience in this enterprise before. If you are poor and get PDM money, chances are that the money will be channelled to other things,’ he said.
Mr Kenneth Mzora, the PDM coordinator for Kabarole District local government, said the district has received Shs21 billion from the central government to capitalise PDM Saccos, with Shs18 billion already disbursed to about 18,000 beneficiaries.
He said the district has started recovering the funds, which are intended to operate as a revolving fund so that recovered money can be given to other beneficiaries.
Mr Mzora said the district has also introduced measures intended to strengthen accountability and governance within the PDM Saccos.
He said Kabarole was recently selected as a centre of excellence for PDM implementation, with focal persons from different regions visiting the district to learn practices that could be replicated elsewhere.
‘We have seven pillars under PDM that we are implementing here, but specifically, they have come to learn about the financial inclusion sector, and they want to see how we are doing it in Kabarole, so that they can go and replicate it in their areas,’ Mr Mzora said.
Mr Mzora said Kabarole had so far recovered Shs62 million from beneficiaries out of Shs18 billion disbursed.
Fundamental gains
Mr Patrick Mugume, a resident of Busaiga Village in Harugongo Sub-county, Kabarole District, received Shs1 million under PDM in 2023, which he invested in an onion growing enterprise. Since receiving the PDM money he has had four harvesting seasons. He made Shs9 million in the first season, Shs15 million in the second, Shs17 million in the third, and Shs19 million in the fourth.