Ministry of Trade is planning to operationalize the Co-operative bank to boost both borrowing of small firms and rural borrowers.
This has been revealed by the state minister of trade David Bahati while presenting the 2023/24 ministerial policy of the Ministry before the parliamentary committee of trade chaired by Mwine Mpaka who is also Mbarara city South MP.
Bahati said that small scale enterprises and rural farmers find challenges of accessing affordable loans in the commercial banks which charge high interests.
He noted that soon the proposal will be abled in cabinet for discussion and once approved, this will see the reestablishment of the Co-operative bank which was closed in May 1999.
Furthermore Minister Bahati informed the committee that in the coming financial year 2023/24 no money has been allocated for the compensation of co-operative unions and societies despite the 444bn request.
