Economists call for mandatory training before PDM funds are disbursed

What the report says

Economists in Uganda are urging the government to make financial literacy and business management training a required step before Parish Development Model (PDM) funds are released to beneficiaries. In the Nile Post report, they argued that the Shs1 million allotted to each recipient should only be disbursed after people have been prepared to use it productively, with the goal of improving repayment and helping investments last longer.

The appeal comes amid concerns that some PDM recipients have struggled to repay the money, which could limit the number of other Ugandans able to benefit from the revolving programme as intended. The economists said training should cover the specific type of business a beneficiary plans to start or expand, so that funds are not diverted to unproductive spending or ventures with little chance of success.

The remarks were made in Kampala during the launch of a book titled Dream Big, Start Small. At the event, author Eve Juliet Nantongo promoted practical financial habits, entrepreneurship and gradual reinvestment as paths out of poverty. Charles Nalyaali, described in the report as a pioneer in Uganda’s microfinance sector, also encouraged people to act on their ambitions and called for tighter regulation of commercial banks to help reduce lending costs.

More broadly, the economists’ position reflects a common policy view that cash support works best when paired with training and follow-up. In the context of PDM, that would aim to strengthen household incomes and improve the programme’s sustainability.