Appendix 2: The Entebbe workshop resolution con RLS
The issue of Revolving Loan Scheme was discussed in one of the
working groups of the Entebbe Workshop, which, in its plenary session, adopted
the following resolution:
Funding partners should accord priority to projects involving
revolving loan schemes. Organisations of PWDs in Africa should plan and secure
resources for revolving loan schemes to provide the following services and
· 100% loan financing for projects of both
individuals and groups of PWDs.
· Training through existing NGO networks of PWD
entrepreneurs in business planning, management and providing of outreach
business, monitoring, counselling and support services.
· Sensitisation of mainstream organisations in order to
reach PWDs in rural and urban centres in each country.
· Promote publicity of the revolving loan scheme to the
· The revolving loan should be managed through an
appropriate financial institution that will be responsible for the processing,
approval and monitoring of financial projects.
· The revolving loan schemes should be uniquely designed in
line with political and economic cercumstances of each country; but should
subscribe to the following general principles:
A multi-disciplinary board of directors with representatives of
PWDs should be elected by the promoting agencies to run the affairs for the
A negotiated interest rate on loans and an agreed grace period
based on the gestation period of the project should be agreed upon by the
A reasonable repayment period in light of the nature of the
project, size of the loan and other considerations should be incorporated in the
Clear logistical plans to enable potential beneficiaries to get
speedy access to information and loan procedures should be part and parcel of
the revolving loan strategy.
Clear sustainability plan linked to investment plan for the loan
guarantee fund should be put in place right from the beginning.
· This workshop recommends that agencies such as ADF, NGOs
and UNDP should incorporate a deliberate policy within their funding and
technical assistance policies focusing on revolving loan schemes.
· For higher levels of funding, groups should approach
As can be seen, it is an ambitious vision. It may be too
ambitious. The proposed RLS is not just a national scheme but a multinational
(or pan-African) one to cater specifically for the PWDs. It seeks to direct the
RLS to provide 100% loans to the beneficiaries (both individuals and groups).
Beyond its usual financing function, it also mandates the RLS to provide
training, business planning, management, outreach business service, monitoring,
counselling and support services.
There is no reason why this vision should not be pursued. However,
it might add weight if the participating organizations are prepared to pledge
some of their own savings into the pool, besides seeking soft funds from donor
organizations. This way they will put some of their own assets at stake, and
thus be forced to take a direct interest in ensuring its