AGM: Bushenyi SACCOs continue to perform well despite Covid-19 huddles

BUSHENYI – Whereas most financial institutions are grappling to recover from Covid-19 pandemic, Kyamuhunga Peoples’ SACCO (KYAPS) in Bushenyi district is in the limelight for recording tremendous success during the financial year 2020/21.

This was revealed on Saturday during its 23rd Annual General Meeting (AGM) which was held at Kyamuhunga Catholic Parish main hall located in Bushenyi district.

According to Paul Turyamureeba Kahiigi, the SACCO board Chairman, KYAPS managed to register a profit of Shs 1,666,680,413 in the year 2021.

Kahiigi thanked the board members, and the management for pulling such a tremendous performance during the Covid-19 lockdown, a time when most businesses that contribute to the SACCOs’ liquidity had been halted.

John Bosco Atwijukire, the SACCO’s General Manager says, KYAPS currently desires to increase the external borrowing from Shs 4 billion to Shs 6 billion to boost its liquidity.

“Of course, we have been borrowing around Shs.4 billion but when we held a meeting, members asked us to increase the commercial loans which we shall have to sit and look into; in order to boost our loan performance because this shows that members still need more money to invest and we cannot limit them because this is their SACCO, ours is to guide and show them the good way to go,” Atwijukire said.

Dr Silver Mugisha, the Managing Director, National Water and Sewerage Corporation (NWSC) who was the Chief Guest warned of opening multiple branches which increases the cost of business-like paying staff, rent, transport among others.

“It is important to find a delicate balance of how many branches you can open so that you can make services easier for the people. But also, you don’t increase costs excessively to affect the value that members will be expecting at the end of the year,” he emphasized.

He maintained that SACCOs must go digital explaining that digital innovations are a good approach that reduces costs and increases efficiency of institutions.

The NWSC boss who is also a member of KYAPS encouraged the SACCO to venture into product diversification which is important for institutional sustainability.

“Product diversification is conventionally known as a strategy to enter into a new product or product lines, new services or new markets, involving substantially different skills, technology and knowledge. So, the board and management should sit and look at products being offered and think of which other products can be offered.”

He also called upon financial institutions to embrace digital innovations to reduce operational costs.

“You also need to go digital, but it is extremely important to see that the people you serve appreciate its importance because sometimes people are not comfortable with digitalization as some members find it okay when they go and transact physically at the bank,” Dr Mugisha emphasized.

According to Ms Sharon Nahabwe, the Principal Commercial Officer, Bushenyi district who is the former General Manager at Kyamuhunga Peoples’ Cooperative Savings and Credit Society, investing in research and innovation by SACCOs which literally means doing things differently from competitors comes with a competitive advantage and helps to achieve market leadership.

The Bushenyi district Resident District Commissioner (RDC), Ms Jane Asiimwe Muhindo who said that KYAPS clients were thrilled by President Yoweri Kaguta Museveni’s membership in the rural bank hailed KYAPS board and management for running a well-organized institution.

“We have so many cooperatives in Bushenyi but if there could be any transparent SACCO, Kyamuhunga is number one and I will extend this to the President and tell him that being one of its members, his savings do still exist and are secure,” says Muhindo.

KYAPS required legal rights to offer cooperative society services in 2004 and has since grown into a top-notch SACCO in Western Uganda with the capacity to run four branches including Butare (main branch), Katerera, Rutookye and Ishaka branch.

Also, Butuuro SACCO located in Bushenyi district recorded a resilient performance of Shs 542 million net profit in 2021 compared to Shs 227 million in 2020.

This was reported on Saturday during its 14th Annual General Meeting for the financial year (FY 2020/21).

According to Benson Barigye, the Board Chairman’s plan has been underway since 2020 for Butuuro SACCO to transition into a Microfinance Deposit Institution (MDI).

“As a SACCO, we have done what we could, and we believe that to make it more profitable we need to have better prices per share to the members,” Barigye said.

The Chairman adds that crossing to MDI, will expand the institution for the entire community to access financial services.

“With the MDI status, we can have other members of the community not necessarily being shareholders of the SACCO. The idea started two years ago. We presented it in the AGM and members bought the idea but asked the board to do more research,” Barigye emphasized.

However, he said the SACCO is only blocked by the Shs. 5 billion share capital requirement to start operating as MDI.

“We called Bank of Uganda officials in March 2021, and they took us through all the requirements for us to become an MDI and the assessment was that if we can improve on the share capital because we had all the necessary requirements except for the share capital which was Shs 5 billion and at that time we had only Shs 2 billion which we have been working hard to save,” Barigye explained.

The Chairman says the cooperative is not moved by Bank of Uganda’s proposal to increase the share capital requirement from Shs 5 billion to Shs 10 billion for one to run an MDI.

“We are still waiting for the proposal whether to be passed but for us we are determined even if the capital requirement is increased or not, we want to keep increasing our share capital to become a Microfinance Deposit Institution,” Barigye said.

Currently Butuuro SACCO has a total capital of Shs 2.1 billion, total turnover of around Shs1.9 billion and boasts of 11,000 members.

https://thecooperator.news/journalists-ask-for-financial-literacy-training/

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All Saints University Lango gets two tractors worth Shs 800m

LIRA – The government has donated two tractors to All Saints University- Lango to boost its agricultural training program as they plan to open a Faculty of Agriculture.

The tractors worth Shs 800 Million were offered by the National Agriculture Advisory Services (NAADs) under Operation Wealth Creation (OWC) which is headed by Gen. Salim Salah.

Two months ago, during the graduation of more than 300 students at All Saints University, the OWC Chief Coordinator, Saleh through Amolatar woman MP Dr Agnes Apea donated Sh10m and pledged to offer two tractors.

The varsity located at St Augustine Community Center in Lira City has more than 200 students with 22 pursuing certificates in Agriculture.

The university was started in 2009 by Lango Diocese to provide a cheap and affordable higher institution of learning.

The University’s Chancellor who doubles as the Bishop of Lango diocese, Prof Alfred Olwa called upon the administration to use the machinery carefully to support development.

He urges the people in the Lango sub-region to embrace the Parish Development Model (PDM) as one of the programs to eliminate poverty in the households and generate income.

Health Minister, Dr Jane Aceng delivered the tractors to the university administration on 24th February at the University’s new site in Ireda, Boroboro road, Lira City East division.

She applauded All Saints University Lango for engaging in agricultural productivity in line with government’s policy of poverty alleviation and wealth creation strategies.

“I want to thank the All Saints University for introducing agricultural courses which are in line with the government policy of fighting poverty through farming and income generation,” she said.

The Vice Chancellor, Prof Anthony Cula said, the tractors will benefit both the university and the farmers in the Lango sub-region.

He urged the government through the Ministry of Education and Sports to support the university financially since they were badly hit by COVID-19.

https://thecooperator.news/government-supports-five-cooperatives-under-acdp-in-masindi/

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Cooperatives Fail The Loans Acquisition Test

NWOYA – Without assets to stake as collateral, cooperative societies in the northern district of Nwoya have failed to snap up agricultural loans available in several banks.

John Bosco Odong, a member of Kochgom Cooperative Society, told theCooperator in a recent interview, that requirements for cooperative societies to get an agricultural loans are quite stringent.

“Farming being an enterprise that comes along with several challenges, banks fear they might lose money since in agriculture there are several risks,” he said

According to him, banks refer to farming as a risky enterprise and are therefore reluctant to dole out loans to farmers.

Alfred Ocan, chairperson of Nwoya Rice and Cassava Cooperative, said they have tried severally and failed to get bank loans.

“We have now turned to microfinance support centers since banks cannot help us.” he said.

He said the government needs to revise the loan policy on collateral and other things, so that farmers can be supported.

Joana Akullu, a member of Amilobo Cooperative Society in Gulu, said, “It’s more than 10 years now since the government allocated funds for farmers but in our group we have never accessed such loans.” Kenneth Kitara, the District Commercial Officer, said some cooperatives have not been able to access loans because many lack documentation on what exactly they do.

https://thecooperator.news/300-nwoya-farmers-targeted-for-irrigation-project/

“You might find that a cooperative has a storage facility where they gather their produce, but when you put them to task to explain the details of the storage and acreage of each farmer they get stuck,” he said.

“Many cooperatives have scanty documentation to attract bank loans, that is why many banks shunned them,” he said.

“We always put them to task to have proper records so that they can tap support from the government agricultural loans that were availed to them to improve their household income and create jobs,” he said.

In 2010, the government availed loans to farmers in Uganda and the money was channeled through banks and some microfinance institutions.

In 2016, the Central Bank revealed that the agricultural sector had the highest level of non-performing loans in Ugandan banks with 15.3 per cent.

Buy your copy of theCooperator magazine from one of our countrywide vending points or an e-copy on emag.thecooperator.news

The post Cooperatives Fail The Loans Acquisition Test appeared first on The Cooperator News.

Cooperatives Fail The Loans Acquisition Test

NWOYA – Without assets to stake as collateral, cooperative societies in the northern district of Nwoya have failed to snap up agricultural loans available in several banks.

John Bosco Odong, a member of Kochgom Cooperative Society, told theCooperator in a recent interview, that requirements for cooperative societies to get an agricultural loans are quite stringent.

“Farming being an enterprise that comes along with several challenges, banks fear they might lose money since in agriculture there are several risks,” he said

According to him, banks refer to farming as a risky enterprise and are therefore reluctant to dole out loans to farmers.

Alfred Ocan, chairperson of Nwoya Rice and Cassava Cooperative, said they have tried severally and failed to get bank loans.

“We have now turned to microfinance support centers since banks cannot help us.” he said.

He said the government needs to revise the loan policy on collateral and other things, so that farmers can be supported.

Joana Akullu, a member of Amilobo Cooperative Society in Gulu, said, “It’s more than 10 years now since the government allocated funds for farmers but in our group we have never accessed such loans.” Kenneth Kitara, the District Commercial Officer, said some cooperatives have not been able to access loans because many lack documentation on what exactly they do.

https://thecooperator.news/300-nwoya-farmers-targeted-for-irrigation-project/

“You might find that a cooperative has a storage facility where they gather their produce, but when you put them to task to explain the details of the storage and acreage of each farmer they get stuck,” he said.

“Many cooperatives have scanty documentation to attract bank loans, that is why many banks shunned them,” he said.

“We always put them to task to have proper records so that they can tap support from the government agricultural loans that were availed to them to improve their household income and create jobs,” he said.

In 2010, the government availed loans to farmers in Uganda and the money was channeled through banks and some microfinance institutions.

In 2016, the Central Bank revealed that the agricultural sector had the highest level of non-performing loans in Ugandan banks with 15.3 per cent.

Buy your copy of theCooperator magazine from one of our countrywide vending points or an e-copy on emag.thecooperator.news

The post Cooperatives Fail The Loans Acquisition Test appeared first on The Cooperator News.

Rising Layoffs Worry Nwoya Casual Workers

NWOYA – Commercial farmers in Nwoya are cautiously scaling back operations and increasing layoffs of casual labor jobs largely to cope with the grim Covid-19 restrictions on movement.

The rising lay-offs of casual laborers is a big worry for cooperative farmers who live off odd jobs on commercial farms.

Alfred Ocan, the chairman of Nwoya Cassava and Rice Cooperative Society, said casual workers live off the little money earned from odd farm jobs each day but as Covid-19 strikes a second time, some commercial farmers have opted to try other businesses.

“Many of our members do odd jobs on commercial farms and if work scales down some cooperatives are also affected,” he said.

According to him, several casual workers have been affected by these layoffs.

https://thecooperator.news/nwoya-rice-farmers-hit-by-falling-prices/

The little they have been earning on farms, they have used it to open up their land for farming while others have bought shares in cooperative societies, he said.

Joyce Lamunu, a casual laborer, told theCooperator that her employer laid off 25 of his 50 casual laborers.

“We have been trekking every day to farms to do odd jobs but as I talk now many of us have been laid off. They feared that we might take Covid-19 at the site and we infect others,’’ she said

The District Commercial Officer Kenneth Kitara said Covid-19 restrictions on inter-district movement are to blame.

“Casual laborers at the moment cannot be moved from one district to another, that has made commercial farmers to scale down their activities,” he said.

Kitara said the affected farmers are being encouraged to put their energies into farming their private land.

Buy your copy of theCooperator magazine from one of our countrywide vending points or an e-copy on emag.thecooperator.news

The post Rising Layoffs Worry Nwoya Casual Workers appeared first on The Cooperator News.

Rising Layoffs Worry Nwoya Casual Workers

NWOYA – Commercial farmers in Nwoya are cautiously scaling back operations and increasing layoffs of casual labor jobs largely to cope with the grim Covid-19 restrictions on movement.

The rising lay-offs of casual laborers is a big worry for cooperative farmers who live off odd jobs on commercial farms.

Alfred Ocan, the chairman of Nwoya Cassava and Rice Cooperative Society, said casual workers live off the little money earned from odd farm jobs each day but as Covid-19 strikes a second time, some commercial farmers have opted to try other businesses.

“Many of our members do odd jobs on commercial farms and if work scales down some cooperatives are also affected,” he said.

According to him, several casual workers have been affected by these layoffs.

https://thecooperator.news/nwoya-rice-farmers-hit-by-falling-prices/

The little they have been earning on farms, they have used it to open up their land for farming while others have bought shares in cooperative societies, he said.

Joyce Lamunu, a casual laborer, told theCooperator that her employer laid off 25 of his 50 casual laborers.

“We have been trekking every day to farms to do odd jobs but as I talk now many of us have been laid off. They feared that we might take Covid-19 at the site and we infect others,’’ she said

The District Commercial Officer Kenneth Kitara said Covid-19 restrictions on inter-district movement are to blame.

“Casual laborers at the moment cannot be moved from one district to another, that has made commercial farmers to scale down their activities,” he said.

Kitara said the affected farmers are being encouraged to put their energies into farming their private land.

Buy your copy of theCooperator magazine from one of our countrywide vending points or an e-copy on emag.thecooperator.news

The post Rising Layoffs Worry Nwoya Casual Workers appeared first on The Cooperator News.