Members Get SACCO Managerial Training

GULU – At least 80 members of Savings and Credit co-operatives from 17 rural groups, with little or no managerial skills of their own, have received training in managing SACCOs formed under the Presidential Initiative On Job And Wealth Creation, Emyooga.

The training conducted by the Microfinance Support Center, MSC, in Gulu district council hall on April 22, 2021, attracted five members from each of the groups.

Kevin Atimango, the MSC Client Relation Officer, took the trainees through the action plans they need to take before members can access their money.

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The trainees are expected to train other group members, mobilize savings, hold an annual general meeting, open an office and activate their SACCO accounts.

“The money for office rent should come from the members’ savings, not the Emyooga cash. That is why it is important for you to encourage members to pay their membership and subscription fees,” Atimango said.

Gulu district received Shs 560 million two months ago but money is still lying on the constituency bank account.

Gulu Resident City Commissioner, Stephen Odong Latek, encouraged the trainees to work like they are competing for a top prize to grow their SACCOs and become role models.

“After eight years we should have a billion shillings out of this money in your account and even qualify to become a bank,” Latek said.

Latek explained that if groups worked hard, they will be saved from the claws of bureaucracies and expenses involved in borrowing money from other financial institutions.

“We are doing this to save you from the very tedious and expensive processes of borrowing money from banks, whereby when you apply for a million shillings, you end up getting only Shs 700,000 because some of it is deducted for other costs,” Latek said.

Latek also warned people spreading rumors that the Emyooga cash is free money that should be shared by members. He said he will arrest anyone who squanders the money.

“This money was not a bribe for you to vote the NRM as some of you are speculating, it is for you to multiply it and improve your livelihood.”

“I’m telling you now that whoever spearheads the misuse of this money will be jailed. Every decision or action regarding this money has to be made by the group, and with due regard to the laws of the SACCO, not by an individual. Falsification of documents and signatures will not be entertained,” he said.

The RDC said for SACCOs to grow, members should borrow the money with the aim of multiplying it, not to host visitors, friends, or to buy household items.

Samuel Baker Okello, the chairperson of the Aswa Tailors’ SACCO, said the training had given him a clear picture of how to steer the group.

“I now know the requirements we need to fulfill before we can access the money. This has been unclear for long,” Okello told theCooperator after the training, adding that, “it will also help me convince other members to pay up their membership and subscription fees, which has not been easy.”

Okello revealed that only seven members of his group have paid up.

Patrick Kitara, the focal person for Emyooga in Gulu district, said during a talk show organized by The Uhuru Institute for Social Development on Mega FM, a day before the training, that SACCO members should pay up the required fees, and abandon the belief that the money is free for all.

“Those who did not pay up are the ones causing confusion. Some groups have 30 members but you find that only 5 or 10 members have paid the fees. Now they have heard that the money is available and want to come and be active. But as long as they have not paid the money, they can’t benefit from it,” Kitara said

Emyooga was launched in August 2019, by President Museveni to enable beneficiaries shift from subsistence to market-oriented production.

The government has earmarked Shs 260 billion for the program, with each constituency getting Shs 560 million.

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Anger In Hoima As Leaders Cling On To Emyooga Cash

HOIMA –As district authorities in Hoima continue to hold on to certificates of 62 savings and credit co-operatives (Sacco) denying them access to Emyooga cash for weeks, angry complaints are piling and some savers are demanding refunds.

The complainants are largely members of different Emyooga associations, who formed SACCOs hoping to benefit from the Presidential Initiative On job And Wealth Creation.

Florence Asaba, the Chairperson of Hoima West Women Entrepreneur SACCO, said some members have lost hope of getting the Emyooga cash and are demanding refunds.

Much as the money is already on the SACCO accounts, she said savers cannot access it because they don’t have certificates. She demanded to know why government is delaying to release certificates to members.

“As the chairperson of the SACCO I am finding challenges, people have been saving, others paid for share and subscription fees but what they expected is not materializing, so some members have started demanding for refunds so that they withdraw from the SACCO,” she said.

Interviewed for comment, Andrew Zimbe, the Midwestern Regional Manager for the Microfinance Support Center (MSC), said the SACCO certificates were released to the district leadership headed by Hoima Resident City Commissioner (RCC) Samuel Kisembo.

He said the center released 62 out of 72 certificates to the district leaders.

According to him, Hoima district has 72 SACCOs, which were formed from 1,460 Emyooga associations.

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The SACCOs are in four constituencies; Hoima West division, Hoima East division, Kigorobya and Bugahya County. Each constituency has 18 SACCOs.

Each constituency is supposed to get Shs 560 million out of Shs 2.24 billion disbursed to the entire Western district of Hoima to benefit 1,460 Emyooga SACCOs.

“We handed over 62 certificates to the RCC two weeks ago, we are just left with 10 certificates, which we are planning to deliver soon,” Zimbe said by telephone on Friday, April 16.

Interviewed on April 19, Kisembo, the RCC, admitted the district received the certificates.

He said they are holding on to the certificates because there are no guidelines on how the money should be managed.

He said they want to train SACCO leaders, beneficiaries and commercial banks managers in SACCO management.

“We received the certificates from MSC but we want to first prepare ourselves before members start accessing this money and we are doing this to avoid what is happening in other districts like Kikuube where SACCO leaders are embezzling the money.” Kisembo said.

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Emyooga Program Is Not Political –Lira RDC

LIRA –Appearing on 88.0 Voice of Lango FM, Lira Deputy Resident Commissioner rigorously fended off pointed allegations that the Presidential Initiative On Job and Wealth Creation, Emyooga program, was introduced to benefit President Museveni’s re-election.

Speaking on Coop Talks on April 20, a radio-talk show sponsored by The Uhuru Institute for Social Development, James Chemutai, said they have heard malicious rumors, which are false that Emyooga program was a political campaign tool.

The malicious rumor, he said, has been propelled by some local leaders, who did not understand the concept of the new government program.

Chemutai said the Emyooga program was established to empower Ugandans with seed capital to fight unemployment. He urged people to steer away from political propaganda.

“Emyooga program targets Ugandans, especially in the informal sector that come together and form savings and credit cooperatives (SACCOs) under 18 Clusters,” he said.

Chemutai said the clusters include; boda-boda riders, taxi drivers, restaurants, welders, market vendors, women entrepreneurs, youth leaders, people with disabilities, journalists, performing artists, carpenters, salon operators, tailors, mechanics, produce dealers, veterans, fishermen and elected leaders.

From the time of its launch in August, 2019 by President Yoweri Museveni, Chemutai noted that about 51 SACCOs including, 33 from Erute North and Erute South constituencies, and 18 in Lira City have already received Shs 30 million each.

Several emyooga beneficiaries who called into the talk show, expressed dissatisfaction with the way the program is handled by the responsible government officials. They said some beneficiaries have either failed to get the funds or get less than expected.

Emmanuel Ogwal, a youth chairperson of Dokolo North Carpenters’ Association, which comprises 30 members, said they were given Shs 30 million but were told to first raise Shs 500 million from other sources before withdrawing the cash.

Lillian Owino, an entrepreneur from Alebtong district, said there are too many fees beneficiaries pay before they finally get the money. She said, however that before she got her money, she was asked whether she supported NRM. When she said yes, her papers were processed.

Denis Okonye from Abim district decried the long process and troubles beneficiaries have to endure including walking for several days to the offices to access the money.

Okonye wondered why government does not use the established structures in different sectors including member-associations like Uganda Manufacturers Association.

In response, Lira district Commercial Officer, Josephine Alobo said they have been gathering people’s views on the rescue funds and are compiling a paper to submit to the Ministry of Finance, Planning and Economic Development for redress.

Alobo said the red-tape is meant to ensure the money is not mismanaged. She however, reminded emyooga beneficiaries to save a lot.

“It’s only a foolish farmer who begins to cook the seed and eat it up, the president has made an initiative to give you the seed and it’s upon you to grow or plant this seed so that you can be able to get many seeds, so that at the end of the day you are socially and economically empowered,” she noted.

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Beneficiaries: Emyooga Cash For SACCOs Too Little

“You find a Sacco with over 500 members in different associations in a constituency getting Shs 30 million, do you expect it to help them out of poverty. I saw some members in my area getting Shs 50,000. How do you move from one step to another with that meager support?” one caller asked.

MASINDI –During an appearance on Kings Radio recently, Moses Kalyegira, the District Commercial Officer of Masindi, said disbursement of emyooga funds in the Western district is almost complete.

Speaking on a talk show program sponsored by The Uhuru Institute for Social Development on April 20, Kalyegira said there are only four savings and credit cooperatives, SACCOs, which haven’t got their money because they have a few issues to resolve.

“We are helping these SACCOs get their money. They have a few challenges but we are helping to resolve them. The money is there on their SACCO accounts. After resolving their issues they will access the money. The other SACCOs have all got their money and they have started using it,” he said.

He also dismissed as false claims that emyooga funds were introduced as bait for votes for President Museveni during the January 14 2021 presidential election. He said the program was introduced before campaigns started.

“This program was introduced to supplement on what people were doing already and also to support other program like the National Agriculture Advisory Services (NAADS), Operation Wealth Creation (OWC) and the Uganda Women Entrepreneurship Program (UWEP) among others,” Kalyegira added.

He also used the radio appearance to clarify that the program never came to kill the traditional SACCOs as many people claim. He said the program is tailored to organize and support people who are organized in one cluster.

According to Kalyegira, Masindi District received Shs 1.6 billion, channeled through 54 SACCOs. The 54 SACCOs were formed in three constituencies; Masindi Municipality, Bujenje County and Buruli.

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The official disbursement of the funds was launched in March 2021 by Rose Kirabira, the Masindi Resident District Commissioner.

Kalyegira however, said SACCO members need to have saved at least 30 percent of the money they are applying for to access emyooga cash from the bank. He said requirement is a big challenge for most SACCOs.

Pamela Nyakato, the chairperson of Bujenje Constituency Leaders Emyooga SACCO, said the program has created jobs, knowledge and skills sharing since people doing similar things meet and share experiences.

Challenges faced

Nyakato also noted that the program is saddled with many challenges and a lot of sensitization is needed.

“Many people thought this program was a thank you (to them) from the president for mobilizing voter support for him. It’s very hard to remove this thinking from the members but we’re trying hard to do the needful and some members have started understanding it,” she noted.

Nyakato also said most members have a poor saving culture. She said many people save in anticipation of getting emyooga money and once they lay their hands on it, they disappear.

“Many SACCOs are also facing a challenge of unskilled leaders. Many people are illiterate and are running these SACCOs. Proper record keeping is a problem. Even accessing the money from the bank is a problem since many are forced to sign several times. You find their signatures varying,” she said.

“For instance, for a member to get money from the Sacco he or she should have saved at least 30% of the money he or she is applying for but few meet this requirement and yet this is the applicants’ security,” she said.

People’s reaction

Most callers however, expressed dissatisfaction with the program. They said the money is too little to move members to another level.

“You find a SACCO with over 500 members in different associations in a constituency getting Shs 30 million, do you expect it to help them out of poverty. I saw some members in my area getting Shs 50,000. How do you move from one step to another with that meager support?” one caller asked.

Another caller was unhappy with the delayed disbursement of the funds. He said they spent a lot on transport following up on their applications.

“We have been putting in a lot of money following up the matter with the bank and other officials but what we are getting as members is very little compared to what we put in. SACCOs with many associations would have been given more money instead of only Shs. 30 million per Sacco,” he said.

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51 SACCOs In Lira Get Emyooga Funds

LIRA –Fifty-one Savings and Credit cooperatives (SACCOs) in the Northern District of Lira have received Shs 30m each under the presidential initiative on job and wealth creation commonly known as Emyooga.

Emyooga was launched in August 2019 by President Museveni to spur a shift from subsistence to market-oriented production.

The government set aside Shs 260 billion to bankroll the programme with each constituency meant to receive Shs 560 million.

James Chemutai, the Deputy Resident District Commissioner of Lira, confirmed the funds have reached the accounts of the beneficiary SACCO groups.

“We have received 51 certificates, 33 are for Erute North and Erute South constituencies, and the remaining 18 for the city. All these Saccos have already received funds on their accounts, that means the president has fulfilled his pledge,” Chemutai told theCooperator in a recent interview.

“When the president launched the Emyooga program, very many people thought it was a campaign tool. They said the president was looking for votes through this Emyooga, which was a total lie. Now that politics is over, many people still thought the money would not come,” he said.

Chemutai applauded the president for honoring his pledge but cautioned beneficiaries to utilize the funds well.

“I take this opportunity to caution the beneficiaries of this money not to eat up this seed because Emyooga is a seed that the president feels should germinate and help the population get out of poverty,” he said.

He said people will be arrested for misusing the money.

The Lira Deputy Commercial Officer Santos Olade said some of the approved Sacco groups have already withdrawn their money from their bank accounts.

Olade said one performing artists SACCO in Erute South had already withdrawn up to Shs 24 million from their account.

“Emyooga guidelines require that when you have deposited Shs1million into the bank account, you end up getting Shs 3 million, so this group had Shs 8 million on their Sacco account so they got Shs 24 million,” he said.

Samuel Odongo, the chairperson of Erute South performing artist SACCO, said they will use the Shs 24 million to buy more equipment and give loans to members.

“We have a lot of experience and talent but we could not showcase it because we were financially unstable but now with the availability of the Emyooga money, we are optimistic we will have a better livelihood,” he said.

On December 11, 2020, the Ministry of Finance, Planning and Economic Development wired Shs 1.5 billion to Lira district and each of the approved SACCO groups account received Shs 30 million.

Erute North constituency received Shs 500 million, Erute South got Shs 530 million and then Lira Municipality (now Lira City West) and East Divisions got Shs 560 million, which was instead wired to Lira City West Division leaving East with nothing.

Emyooga cash is largely given to Ugandans in the informal sector organized in Saccos under 18 clusters including; Boda Boda riders, tailors, taxi drivers, restaurants, welders, market vendors, women entrepreneurs, youth leaders, people with disabilities, journalists, performing artists, veterans, fishermen, private teachers, and elected leaders.

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Budget: Kwania Cooperatives Get Shs 89m

KWANIA –The district local council has allocated Shs 89,378,000 million to run cooperatives next financial year. The money will go to the 14 fully registered Saccos in the Northern district, and 917 Village Saving Associations (VSLA).

According to the draft budget presented before the council on April 19 2021 by the Secretary of Finance and Administration Geoffrey Eling Owera, Shs 89m was allocated under Trade, Industry, and Local Economic Development.

The money, according to Eling, will cater for market linkage services, cooperatives mobilization, and outreach services.

About Shs 2.9bn has been allocated to production and marketing, Shs 669m to statutory bodies, finance (Shs 216m), and administration (Shs1.7bn), while Shs 280m went to natural resource, community-based services got Shs172m, water and sanitation (Shs 582m) and Shs 967m was allocated to works and technical services among other sectors.

The draft budget was consequently deferred to the sectoral committee for scrutiny before the final approval in the subsequent council sitting as directed by Local Government Minister Raphael Magyezi.

The district, however, has a shortfall of about Shs 4bn in 2021/2022. In the financial year 2021/2022, the district projected to raise about Shs 24.5b down from Shs 28.6 billion projected last financial year.

Geoffrey Eling Owera, the finance secretary, blamed the shortfall on the Covid-19 pandemic, which disrupted local government revenue. Eling told the council that the district only managed to raise 20 percent in local revenue in the last F/Y interrupted by Covid-19.

Eling said key stakeholders and district leaders have to lobby for more funding to improve service delivery.

“Mr. Speaker, as leaders and stakeholders in the district, it is our full responsibility to mobilize for more funding from donors through lobbying and advocacy, this calls for concerted efforts for the wellbeing of the people of Kwania district,” he added.

Albina Awor, the chief administrative officer of Kwania, blamed the budget shortfall on the change of the Indicative Planning Figure (IPF) and a ban on charcoal burning and transportation, a major source of local revenue.

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Rwampara SACCOs Get Nod To Borrow Emyooga Funds

RWAMPARA – April 14 was a day of celebration and a moment of renewed hope for members of saving groups in the Western district of Rwampara after they got the official nod to borrow Emyooga funds.

The district officially launched the presidential Initiative on Emyoga last Wednesday, which opened the access door for saving groups, SACCOs, to get the government’s poverty alleviation funds.

When most SACCOs in the country received Emyooga funds in November and December last year, Rwampara district was pushed on the sidelines.

In March 2021, Emmy Kateera Turyabagyenyi, the Rwampara Resident District Commissioner, reported to the Minister for Microfinance Haruna Kasoro that SACCOs were barred from accessing Emyooga funds in Post Bank where 36 SACCOs had opened bank accounts.

However, on April 14 residents broke out in joyous celebrations at Nyeihanga playground in Nyeihanga town council where 36 Saccos from both counties of Rwampara district were handed certificates –officially giving them the nod to withdraw Emyooga funds to kick-start their projects that had stalled since August last year.

Amon Mutabarura, the Rwampara district commercial officer (DCO), said the delay allowed proper sensitization of members to put money to good use.

He confirmed that Rwampara received Shs 1.4 billion and all the money is already wired to their bank accounts.

“All the 36 SACCOs have gotten the money, it’s already on their accounts and they have all the freedom to withdraw this money,” Mutabarura said.

“What we have achieved is what started in the month of August when the president asked us to go and teach people how to save money through their SACCOs,” he added

In his remarks, the RDC Turyabagyenyi warned; “We are going to monitor them and in case this money we have dispersed today is misused either by an individual or leaders we shall definitely apprehend them. The clients of the SACCO are group members, not individuals.”

Turyabagyenyi said more parish development funds will be disbursed in July 2021 to benefit every parish, which will be receiving Shs 40million per association.

“This money according to the guidelines is basically to empower the parish associations meaning that those which will have been saving with Emyooga SACCOs will benefit more and longer. As long as the SACCOs keep performing well according to the monitoring report they will qualify to get up to Shs 100 million from the Microfinance Support Centre as the lead agency at 8% per annum which will continue flowing every year,” he said.

Vincent Nuwagaba, the DCO Mbarara, reported that the program has already registered some setbacks since it is not intended to aggregate the already existing cooperatives/SACCO issues.

“Emyooga was a good initiative for the president but you see groups at the parish level forming a SACCO and the SACCO operating at a constituency level within the specific 18 Emyooga associations like mechanics but it’s high time government thought about injecting money in the already existing cooperatives in every financial year to increase on their portfolio” Nuwagaba advised

He also bashed Microfinance Support Centre (MSC) for delaying releasing Emyooga certificates.

“The money came on 23rd December 2020 but the certificates have come in April. Count the time wasted since then,” Nuwagaba said.

Andrew Zimbe, the Micro Finance Support Centre (MFSC) Zonal manager southwestern, warned district technical staff to refrain from taking bribes from Emyooga co-operators.

“Some commercial officers in certain districts are taking bribes to clear SACCOs to access Emyooga funds. Don’t do anything before you consult, leave the RDC and the CAO who is your boss to give you updates,” Zimbe said

“I want to congratulate you for having arrived on this day but no association should access a loan without following the guidelines, which are stipulated in the lending policy. Like where I have been before an association goes to access part of the Shs 30million it should have saved 20% with the SACCO,” Zimbe said.

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Zombo signs EFOTI deal To improve tea yields

WEST NILE –Tea growing in the West Nile district of Zombo has got an accelerating effort that could boost local production.

Zombo Tea Growers’ Cooperative Society and Edwin Tea Foundation Initiative, EFOTI, a company with good expertise in tea farming, have signed a memorandum of understanding that aims largely at promoting tea research, production, productivity, value addition, and tea product diversification in Zombo for five years.

The MoU was signed last Friday, April 9, by the Chairman of the Cooperative, Christopher Unencan, the Secretary, Jungiera Geoffrey, and Aneniwu Patrick, a cooperative tea farmer, and Edwin Beekunda Atukunda, the founder of EFOTI.

Unencan told theCooperator in an interview that, “We signed the MoU to enable us to work in partnership with EFOTI in our district to build the capacity of farmers in terms of training and value addition.”

Tea growing was reintroduced in Zombo in 2013-2014. Unencan said members who planted tea in 2016-2018 are harvesting now.

Unencan said the cooperative, formed in 2016, has over 300 registered members, who have grown over 500 acres of tea.

He said, however, that despite the huge acreage of tea plantations, members are still earning very little from the enterprise because there is no factory in the area to process the harvest and add value to attract high prices.

“The registered members of the cooperative suggested that we come to an agreement with EFOTI because they have been struggling to sell their tea. They are selling their tea locally after a very long and tiring process of pounding the leaves using the mortar and pestle,” Unencan said.

He said farmers believe the MoU will spur the establishment of a tea processing factory.

Although there are about 36 tea processing factories in Uganda, all of them are concentrated in western and southwestern Uganda.

Edwin Atukunda Beekunda, the founder of EFOTI, said an area qualifies to get a factory after planting at least 2000 acres of tea.

He said following the MoU, EFOTI will conduct training in agronomic practices to enable improvements in tea yields and quantity and also promote value addition, processing, branding, packaging, marketing, and export.”

He said they will also, “Build the capacity of tea nursery operators, tea growers, students and other stakeholders for improved tea cultivation, processing, and marketing.”

Tea is one of the leading cash crops in Uganda with a yearly export of 65,000 metric tonnes. A 2020 report by Ugtea shows that Uganda is the second leading tea producer and exporter in Africa and among the top 15 in the world.

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Microfinance minister to promote Emyooga products

The Minister of State for Micro-Finance & Small Enterprises, Hon. Haruna Kasolo Kyeyune has pledged to create a department within the Microfinance Support Centre to expand the market base for products produced under the Emyooga scheme.

Kasolo made the pledge last Friday while visiting Emyooga SACCOs in Mbarara after Immaculate Tumuhimbise, the Chairperson of Mbarara City South Women Entrepreneurs’ SACCO raised concerns over potential overproduction by Emyooga enterprises with no ready market for their products.

“People should not produce and fail to find a market. I will propose to the cabinet that funds be set aside to help in marketing and research for Emyooga products,” the minister promised.

He encouraged the entrepreneurs to be innovative and to produce attractive products that will be competitive in the international market.

“I implore Emyooga members to be innovative and creative such that when you make a product, say a bag, it is as good in quality as those made from established markets like China.”

He also cautioned prudence in managing their capital resources.

“You are not supposed to overspend; create cheap capital within the informal sector because you may find it difficult to access credit from commercial banks,” Kasolo advised.

Robert Mpakibi, the Assistant Registrar of co-operatives confirmed that 32 out of 36 registered Emyooga SACCOs in the district have already accessed money under the initiative.

Impressive savings

Meanwhile, Phiona Aheebwa, the Front Desk Officer at the Microfinance Support Centre Ltd (MSC) was impressed by the saving culture demonstrated by Mbarara City South Women Entrepreneurs SACCO.

The 202-member SACCO has already saved Shs 38m since November 18, last year, bringing its total capital to Shs 68m after adding the Shs 30m Emyooga cash from MSC, revealed SACCO Chairperson, Tumuhimbise.

Aheebwa appealed to members to maintain the savings culture and promised that if they are consistent, they could benefit from a bigger loan facility from the MSC in the future.

“If members keep taking and paying their loans well, as MSC we shall make sure that we add more money in the project at a small interest rate, depending on the performance,” she said.

Aheebwa recommended that Mbarara City South Women Entrepreneurs SACCO apply for more money from MSC should the need arise.

“If you need more money, whether it’s 100m or 300m, I will recommend that you receive it from the Microfinance Support Centre. What matters is the members to grow but not for the SACCO to build magnificent buildings,” says Aheebwa

She encouraged the Commercial Officers to continue training Emyooga members for the program to benefit the entire country.

Mbarara district, comprising of Kashari North and South, received a total of Shs 1.12 bn to cater for 36 SACCOs at constituency level, while Mbarara City received Shs 1 bn also for 36 SACCOs.

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Kabarole: Kitojo Care SACCO holds first AGM after COVID-19 setback

Kitojo Care SACCO in Kabarole district has held its Annual General Meeting (AGM) this week, after missing out on holding one in 2020.

While cooperatives are required by law to hold an AGM every year, Kitojo Care SACCO, like many others countrywide, was unable to fulfill this obligation last year due to the COVID-19 pandemic that resulted in a temporary suspension of all manner of public gatherings.

Moreover, the SACCO saw its savings and loan portfolios take a hit as most of its members were constrained in conducting their business as a result of restrictions imposed by the government to limit the spread of the pandemic.

“Last year was a very hard one; the majority of our members are Boda Boda riders and others work at tour sites which were not working during the lockdown, so most of the businesses were on standstill. This affected our savings, loan repayment, and loan portfolio,” said Fortunate Kusemererwa, the SACCO’s Manager.

Consequently, he revealed, by year’s end the loan repayment rate had dropped from 92 to 85 percent, and the loan portfolio reduced from Shs 634m to Shs 464m

Kusemererwa said that Kitojo Care SACCO, which was started in 2007 with the aim of increasing members’ household incomes and improve on their saving culture, has since last year been faced by the challenge of the majority of its members being dormant, “to the extent that they cannot even afford to save Shs 10,000 per month.”

Taking a toll

The slowdown in the SACCO’s momentum has taken its toll on some of the developmental projects that it had recently undertaken.

For instance, Kusemererwa disclosed that the SACCO had in 2019 embarked on a project to construct its own office premises after squatting for several years at those of Kitojo Integrated Development Association (KIDA), its mother organization.

“KIDA has been hosting us for all these years, but in 2019, we decided to start constructing our own offices because members have since increased and cannot fit in the little space we are currently occupying,” he said.

However, due to the financial difficulties from the last year, they have not been able to continue with construction works.

“We had hoped to complete our office last year, but due to the lockdown, we had to halt it. Savings have drastically reduced, loan recovery is still poor and our members no longer take loans,” he explained.

AGM resolutions

Kusemererwa said this year’s AGM resolved that each member should contribute Shs 1,500 per month towards the completion of their office block, which he believes is the only option that will save them.

The Kabarole District Commercial Officer (DCO), John Kabango, who attended the AGM, advised members to reacquaint themselves with the reasons why they joined cooperatives in the first place so that they can enjoy the most benefits from them.

“Some people just join SACCOs to borrow money and run away without paying back. You need to know that these SACCOs are voluntary and are meant to help people improve their standard of living,” Kabango said.

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