Uganda Government puts Shs4.3 trillion into PDM as borrowers reach 3.57 million

KAMPALA — The government has put Shs4.317 trillion into the Parish Revolving Fund under the Parish Development Model (PDM), and the money has reached 3,571,108 beneficiaries, according to the Ministry of Finance.

The PDM is the government’s main scheme for moving households from subsistence farming into the money economy. The funds are channelled through 10,589 PDM Savings and Credit Cooperative Organisations (SACCOs), each of which has received at least Shs400 million over four years, the ministry said.

Beneficiaries can borrow up to Shs1 million at 6% interest a year, repayable over three years with a two-year grace period. That rate is far below what commercial lenders typically charge small borrowers.

The largest investments have gone into three enterprises. As of June 2026, borrowers had put Shs461.12 billion into piggery, Shs453.52 billion into coffee and Shs425.27 billion into poultry, according to the ministry’s Financial Inclusion Pillar report. Together, the three account for Shs1.34 trillion, about 31% of the fund’s capitalisation.

Women make up 53.88% of beneficiaries (1,924,188), and men 46.12% (1,646,920). By age, adults aged 31 to 59 account for 1,946,086 beneficiaries, youth aged 18 to 30 for 1,086,998, and people over 60 for 538,024.

The programme relies heavily on digital systems to move and track money. The government’s Integrated Financial Management System (IFMS) sends funds to SACCO accounts, and the PDM Information System registers eligible beneficiaries.

Wendi, the mobile wallet run by state-owned Pearl Bank, pays loans directly to beneficiaries’ phones, while a system called Zaidi tracks and verifies transactions in real time. The government says it has recruited 14,133 Wendi agents and distributed 27,100 tablets for registration and monitoring.

The Financial Inclusion Pillar has recorded 222,389 enterprise groups, of which 183,430 have been profiled on the PDM Information System.

The figures were presented at an inter-ministerial meeting at the Ministry of Finance, chaired by the Minister of State for Microfinance, Shartsi Kuteesa Musherure. Ministers and technical officers responsible for the PDM’s seven pillars met to review progress and identify reforms to improve the programme’s sustainability and accountability.

The Minister of State for Animal Industry, Lt Col (Rtd) Bright Rwamirama, said the government had registered 645 premises that handle agricultural chemicals and seeds, in an effort to curb counterfeit inputs. He said the government had also bought and distributed 50.6 million doses of foot-and-mouth disease vaccine and set up solar-powered cold-chain facilities in 53 districts.

The Minister of Local Government, Balaam Barugahara, warned against extortion, illegal charges, favouritism, political interference, fraud and diversion of PDM funds. He said the programme’s success should be measured by higher production, savings, value addition, market access and household incomes.

The Minister of State for Gender and Culture, Mary Kamuli Kuteesa, called for beneficiaries to be better prepared and trained before they receive money, and for closer follow-up afterwards.

The Minister of State for National Guidance, Alion Yorke Odria, proposed using government agencies and regional radio stations to improve public awareness of loan repayment and programme changes.

PDM national coordinator Dennis Galabuzi said the programme was moving towards a whole-of-government approach organised around value chains, covering inputs, production, storage, electricity, processing and markets.