Final project report : Uganda rural economic recovery project, cooperative agreement 617-0108-A-00-7001-00

Procurement and distribution of agricultural inputs and construction materials to the target group was accomplished by using 42 of the agricultural cooperative societies that were active in the target area and three wholesalers with retail outlets. The credit component used 38 of the same societies in the first year to deliver credit to small farmers. The Uganda Commercial Bank branch system was the fund custodian in the first year. In the second year, the Cooperative Bank was added as an intermediate credit institution (ICI) and the area of operation was expanded until it eventually encompassed 86 societies in 6 districts. Subprojects included grants to the ICI"s as well as grants for emergency relief commodities in Northern and Northeastern Uganda, and for the rehabilitation of the 42 cooperative societies. A core group of 12 Ugandans were employed on contract or seconded to the project. These 12 dedicated people possessed the skills to operate the warehouse, handle the receipt and distribution of commodities, operate and maintain a fleet of five project vehicles, do the accounting, supervise credit operations, and handle administrative affairs. Although all major activities of the project ended 9/30/89, and without the benefit of UShs 70 million, the goals and objectives were all met with the exception of granting 8,000 small farmer loans. Approximately 6,000 loans were made by that date and approximately 6 of the original 42 primary cooperative societies have continued to use the project revolving loan fund on an annual basis. As of 9/30/91, the ultimate goal of making 8,000 small farmer loans was attained. (Author abstract, modified)