The State Minister for Energy and Mineral Development, Phiona Nyamutoro, has launched the second phase of Zimzim SACCO with a Shs320 million injection to expand affordable financing for members and support household businesses in Nebbi District.
The launch was held at Gaf Gardens on Thursday and attended by sub-county coordinators, LC III chairpersons from all 16 sub-counties, NRM leaders and district officials.
Nyamutoro said the additional funding will enable members to grow small businesses while reducing dependence on money lenders who charge high interest rates.
She said Zimzim SACCO provides small loans to members at an interest rate of 2 per cent, making credit more accessible to people who have traditionally struggled to secure financing.
“Before we started campaigns, we rolled out Zimzim first phase, giving Shs 500,000 in all the villages of Nebbi, though most people feared that the money would go to waste. But we thank God, we achieved better results,” Nyamutoro said.
Zimzim SACCO was launched in March 2025 across all 640 villages in Nebbi District, with each village receiving Shs500,000 as a revolving fund. The scheme mainly targets rural women and youth involved in small-scale businesses who face challenges accessing affordable credit.
Nyamutoro said the SACCO forms part of her key priorities for Nebbi, alongside improving education, health services and supporting local businesses.
She said beneficiaries had embraced the initiative and demonstrated that community-based financing can help households fight poverty.
“People have started growing the SACCO. They give testimonies of being able to pay small fees, start businesses and I didn't anticipate this from the start. I am optimistic that with this second phase, we shall have more testimonies and impact from the beneficiaries,” she said.
She asked residents to hold her accountable for delivering on pledges made during her campaigns.
Nebbi District LC V Chairman George Othuba praised the initiative, saying local leaders were ready to support the second phase after witnessing the impact of the first phase.
Othuba said the programme had benefited vulnerable groups, including orphans and persons with disabilities, adding that the initiative demonstrated the importance of leaders responding to community needs.
“She isn't the only one in Parliament, but she is doing what others haven't done. This initiative is helping orphans, PWDs and the poor,” Othuba said.
The SACCO comes at a time when several government poverty reduction programmes, including the Youth Livelihood Programme (YLP), Parish Development Model (PDM) and Uganda Women Entrepreneurship Programme (UWEP), have faced challenges recovering funds due to perceptions among some beneficiaries that government support is free money.
However, district leaders said the savings component of Zimzim SACCO could improve accountability and repayment among members.
Nebbi Resident District Commissioner Robert Abak said poverty remains a major challenge despite relative security in the district.
“There is security in Nebbi, but there is a lot of insecurity in the pocket,” Abak said, describing household poverty as a major concern.
He urged beneficiaries to take ownership of the SACCO, saying the programme was designed to help communities improve their livelihoods.
“Zimzim has come to help fight poverty, but we have a problem of people's mindset where people think it's Hon. Phiona's programme and yet it's made for you. It is up to you to fight poverty,” he said.
More than 20,000 people have benefited from Zimzim SACCO since the rollout of the first phase. Some members who started borrowing as little as Shs10,000 have grown their businesses and are now accessing loans of up to Shs100,000.
Following the launch of the second phase, Nyamutoro said she plans to mobilise support for the construction of a Health Centre IV in Alala Sub-county through partnerships with friends and political allies.
She also announced plans to provide solar-powered water pumps, starting with five sub-counties, including Akworo and Atego, with three additional areas to be selected by the district leadership.
The Zimzim SACCO Phase Two field tour is scheduled to begin on July 31, 2026.
