By Diana N. Kintu
The Government of Uganda has announced the release of UGX 529 billion in fresh funding to support Parish Development Model (PDM) Savings and Credit Cooperatives (SACCOs) for the first half of the 2025/26 financial year. The announcement was made by the Minister of Finance, Planning and Economic Development during a media briefing in Kampala, marking another major step in the country’s ongoing drive to eliminate household poverty and transition families from subsistence production to participation in the cash economy.
During the briefing, the Minister confirmed that the government has fulfilled the presidential commitment made in 2021 to capitalise every parish with at least UGX 100 million. He stated that this pledge has been delivered “fully and faithfully” across the country, ensuring that funds reach the intended communities without diversion along the administrative chain. According to the latest government data, a cumulative total of UGX 3.261 trillion has now been transferred directly to 10,589 parishes since the program’s inception.
The Minister highlighted that 99 percent of the released funds have already been disbursed to 3.27 million Ugandans. These beneficiaries include key categories such as farmers, women, youth, and persons with disabilities. He emphasised that these groups form the foundation of local agricultural production and are central to Uganda’s vision of building vibrant parish and sub-county economies.
Government officials noted that results from the PDM are beginning to show at the household level. Agricultural production has been boosted as thousands of beneficiaries have invested in income-generating enterprises. Ministry records show that UGX 385 billion has gone into coffee cultivation, while UGX 1.1 trillion has been invested in food and other cash crops. Another UGX 1.1 trillion has been directed into livestock projects, particularly piggery, and an additional UGX 366 billion has supported poultry farming across the country. According to the Minister, these figures indicate that the PDM is no longer theoretical but a real driver of rural economic transformation.
To sustain the program’s objectives, the government has allocated a total of UGX 1.097 trillion to the Parish Development Model in the 2025/26 financial year. This allocation includes support for the revolving fund, PDM SACCO operations, loan withdrawal charges, and facilitation for parish chiefs and committees. With this latest injection of funds, each of the 10,589 verified PDM SACCOs will receive UGX 50 million deposited directly into their accounts for onward lending to households.
The Minister took the opportunity to caution against financial misconduct, announcing a zero-tolerance stance toward corruption and extortion. He warned that no beneficiary should be charged any fee to access PDM loans and encouraged citizens to report any individuals or officials who attempt to exploit the system. He added that the success of the program depends on transparency and community vigilance.
The government also appealed to financial institutions to expand their support infrastructure. The Minister specifically called on government banks, including Pearl Bank (Postbank), to speed up the roll-out of Wendi agents to ensure that financial services reach even the most remote communities. He noted that easy access to banking and digital financial systems will help beneficiaries save, borrow, and repay loans efficiently.
The Minister concluded by describing the PDM as a powerful and practical tool already “transforming lives, gardens, and livelihoods.” He urged leaders and citizens to work together to sustain Uganda’s economic progress, emphasising that national prosperity will be built from the household level upward. He expressed confidence that with continued commitment, the program will help create a country where every family contributes meaningfully to the national economy.