Soroti City starts re-allocation of lock-ups to vendors at Soroti Modern Market

SOROTI – Authorities of Soroti City have embarked on re-allocation of lockups in Soroti Modern Market nicknamed as “New Jerusalem” constructed under Uganda Markets and Agricultural Trade Improvement Project (MATIP-2); after months of disagreement between vendors and city authorities.

The nine days exercise which commenced on Tuesday, August 31st, 2021 is being spearheaded by the Principle Community Development Officer, Damalie Asekenye who doubles as the Market and Agricultural Trade Improvement Project (MATIP) Officer.

According to the road-map, the lockup allocation exercise is expected to end September 8th,2021 and the vendors will commence their operations in the market on the 10th of this month.

This comes after months of disagreements between the market vendors and city authorities over the illegalities surrounding the first exercise.

The disagreement stemmed from reports that the market leaders led by George William Eriebat, had double allocated themselves lock-ups including their close relatives leaving out more than 2,000 people who had applied for space in the new market.

A number of vendors complained that the allocations were based on relations with the technical people and the majority refused to take up lockups allocated to them by the city authorities.

This forced the Resident City Commissioner (RCC), City Clerk, Ambrose Ocen and the City Mayor, Joshua Edogu to halt the allocation of Lock-ups.

After the process was halted, an independent committee was formed to investigate the allegations that Eriabat and his team had double allocated lock-ups to themselves.

During the investigations which lasted for a month, the committee found out that allegations raised by a section of vendors against the leadership of the Market vendors were true.

However, the Principle Community Development Officer (CDO), Damalie Asekenye told theCooperator that the issues that affected the first re-allocation exercise have been resolved amicably.

She said the ongoing lock-up allocation exercise is being conducted by a 24 man’s team representing the 12 sections in the market.

According to Asekenye, by September 1st, 2021, a total of 38 vendors from Solot-Avenue and Adams road had successfully got their lock-ups without any grievances registered.

“As per the Memorandum of Understanding (MOU) between the then Soroti Municipal Council and the vendors, the priority is given to the vendors (Landlords), their tenants, people operating businesses and those whose leases could have expired by the time of market construction,” said Asekenye.

Richard Opiding, the chairman allocation committee assured the vendors that their commitment is to see that the lock-up allocation is done in a transparent manner.

“My committee and I don’t want to repeat the same mistakes which were done by the leadership of the market vendors and top city management because those mistakes made the vendors protest the first allocations,” he told theCooperator.

Josephine Akayo, one of the smoked fish dealers applauded the government for giving Soroti City such a unique facility.

According to her, the market is not only a pride for Soroti district but Teso as a region.

“It will go a long way in creating job opportunities for vendors,” she summed up his happiness.

Meanwhile, Ambrose Ocen, the Soroti City Clerk said that the new market has 1,390 facilities, including stalls and retail stores which ought to be allocated to the low-income earners to operate inside the market, including the vendors.

“Absentee landlords who may want to buy space have no place here,” the City Clerk told theCooperator in an interview on Wednesday.

He highlighted that the market will boost development in Teso sub-region and Soroti in particular, hence making it a regional business hub.

https://thecooperator.news/why-roko-failed-to-complete-construction-of-mbarara-central-market/

Ocen added that Soroti Main Market will not only boost trade in Soroti but also local revenue collection in Soroti City hence improved service delivery to the city dwellers.

Soroti Main Market was constructed by TECHNO 3-Uganda Ltd at a tune of Shs 24 billion, with a loan acquired from African Development Bank (ADB).

It was commissioned by the President H.E Yoweri Kaguta Museveni on November, 2020.

Geoffrey Ettedu, the National Coordinator, Markets and Agricultural Trade Improvement Project (MATIP-2) said the markets constructed by the ministry in the districts of Hoima, Gulu, Moroto and Lira don’t measure to Soroti Modern Market in terms of scope, design and standard.

“Soroti market project is the biggest of all the markets constructed under the Market and Agricultural Trade Improvement Project (MATIP-2),” he added.

In addition to stalls and lockups, the new market has CCTV cameras linked to the Soroti Central Police Station, 500,000 litre water tank, butchery, chicken cages, cold rooms and service centres: tailoring, pharmacies, financial institutions and small-scale value addition units.

The new modern market also has prayer rooms, restaurants, day-care facilities, meeting rooms, and a Police station.

Soroti Modern Market is powered by solar energy for lighting to enable storage of fresh foods and vegetables to avoid losses caused by constant electricity blackouts in the city.

The facility is also connected to the solar water pumping system that is independent of the National Water and Sewerage Corporation.

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Hoima District Referees SACCO suffers financial distress as a result of Covid-19

HOIMA – The mandatory Covid-19 lockdown has finally taken its toll on referees as games and sports resumed under strict Standard Operating Procedures (SOPs).

Last week, Hoima District Referees Saving and Credit Cooperative Society’s (SACCO), Board of Directors convened a meeting and made several resolutions to save the SACCO from distressing financial challenges.

Speaking to theCooperator, the referees SACCO Board Chairman, Patrick Kunihira explained that the board meeting agreed that the SACCO suspends the giving out of new loans to the members.

He added that during this period, the SACCO will only give members their savings. Members will be allowed to get half of their savings to ensure that the SACCO continues to survive.

He further added that the board also agreed to reduce on the expenditures which the SACCO office has been incurring such as allowances.

Kunihira explained that during the meeting they also resolved to cut the salaries of their workers and allowed workers to work in shifts.

He also said that some members are failing to save or pay back loans largely due to the Covid-19 induced lockdown.

“You know SACCOs survive on the savings of members but because of the Covid-19 lockdown, our members are no longer saving and those who took the loans are not paying back and such challenges are affecting our SACCO,” he said adding that they have hope that the measures put in place will save the SACCO from facing more financial challenges.

He challenged members who are still earning, something in this period to continue saving and appealed to those members who took the loans to try and pay back the loans to secure their SACCO.

Francis Bagonza, Chairman Investments said that the Covid-19 pandemic has affected several investment plans. He noted that the SACCO had a plan of establishing a depot and to have a means of transport but all these plans have been frustrated by Covid-19 because the SACCO is not making money as they anticipated.

He added that the SACCO had started a Sports club bar but unfortunately this business shut down following the closure of bars by the president to reduce the rates of Covid-19 infections.

However, Bagonza said that before the situation worsened, the SACCO had invested in tree planting projects adding that the SACCO currently has five acres of titled land with Eucalyptus trees.

Philip Tibaigana, the SACCO Manager expressed dismay that the SACCO applied for a loan of Shs 50 millions from the Microfinance Support Center (MSC) to boost them but their request was not honoured despite having fulfilled the requirements.

https://thecooperator.news/only-19-of-the-72-emyooga-saccos-have-received-funds-in-hoima-district/

In the Annual General Meeting (AGM), which was held early April 2021, the SACCO which started in 2015 had registered 112 members and given out Shs 279m in loans.

The SACCO had Shs 330 million in savings and Shs 22 million in shares.

Derrick Matsiko, the Public Relations Officer (PRO) of the Microfinance Support Center, Bunyoro region said, that several organizations including SACCOs are facing financial distress due to the Covid-19 lock down.

He says that, it is high time SACCO leaders ensured drastic measures to avoid the collapse of their organizations; adding that management thought it wise that Hoima district referees put in place measures of saving their SACCO from facing further financial challenges.

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Popular Mbarara market burns down, arson suspected

Several traders who lost their merchandise in the Saturday July 11 conflagration that engulfed Nyamityobora market suspect that the popular market was deliberately torched by motivated individuals, despite the police’s insistence that the cause of the fire is as yet unknown.

Located at Mile Two on Mbarara-Masaka road, the iconic Nyamityobora market- sometimes named Kijungu- is one of the sights that welcome you into Mbarara Town.

Vendors in Nyamityobora Daily Market were left in tears after an abrupt fire gutted the iconic market and destroyed property worth over Shs 500m.

The fierce blaze started in the wee hours of the night and destroyed a lot of property including tonnes of dry and fresh food stuffs, stalls, clothes, shoes and several eateries within Kijungu cell, Nyamityobora division, in the new Mbarara City

Nyamityobora market Chairperson, Wilson Rwamukore, confirmed that a total of 600 registered traders had lost property worth Shs 500m, including the market office.

“It has 600 traders and property worth Shs 500 million had been lost; even my money and books were burnt in the office. I was informed at 4 am, and and by the time I reached here, the entire market had been burnt,” Rwamukore said.

Byansi Muhammad, the area councillor representing Nyamityobora ward regretted that the unfortunate incident happened during the COVID-19 lockdown.

“It is unfortunate our market has got burnt during a bad time of COVID-19 when people were no longer working as their businesses were all locked down,” Muhammad said.

Arson suspected

Several traders who spoke to theCooperator expressed their suspicion that the fire that destroyed their livelihoods was no accident.

Ketty Rukundo, who for the past eight years has operated a hotel in Nyamityobora market, told theCooperator that she learnt about the inferno by phone call early Saturday morning.

“It was around 5:00am when I was called by a colleague saying, ‘You are sleeping and yet the market is burning?’ By the time I reached there, I could not save anything- everything had been burned; I simply broke down,” Rukundo says.

Rukundo believes the fire was planned by some market leaders who had earlier suggested developing a standard Nyamityobora market, while Wilson Rwamukore, the market Chairperson, blamed the tragedy on “enemies of the market”.

“It was torched by some enemies of the market, but we shall wait for the police investigation report,” he said.

Councillor Byansi Muhammad was equally shocked by the timing of the fire outbreak.

“If the fire was from a charcoal stove, the market would have got burnt around 11pm. But now, with this fire of 5 am, we really don’t know,” Muhammad mused.

For his part, Lawrence Birungi, a trader whose posho store was torched in the conflagration, says the fire’s outbreak during curfew time makes it even more suspect.

“We leave the market at 6 pm because of the curfew, so we were are surprised to learn that the fire that destroyed our businesses started between 4-5 am when there are no boda bodas operating. Some of us think this fire was planned.”

The widely held suspicions of arson are fanned by the narrative of the fire’s genesis and progression provided by Brian Semanda, one of the security personnel at the market. According to him, the fire was set from different corners of the market.

“The fire started in the middle of the market, but by the time we got there, another side of the market had also started burning. This means the fire was intentionally set by some unknown people,” Semanda said.

Police response

ASP Samson Kasasira, the Rwizi regional police mouth piece, says the cause of the fire hasn’t been established yet but investigations are still ongoing.

However, many blamed the police for not acting fast enough to stop the fire, despite the market having Nyamityobora police post for a neighbour.

“How can our market get burnt from left, right, to centre, when there is a police station next door? So we blame the government because they didn’t offer any help until we made an alarm to the central police station. And even when they came, the fire van had no water and we had to put out the fire ourselves,” one Saidat Rukundo charged.

But Kasasira says the police had responded in time to save a significant part of the market.

“Today morning fire gutted Nyamityobora market. It is said to have started at 4 am, and our fire rescue team was able to respond and put out the fire, saving half of the market and the neighbouring structures,” he said.

Vendors trying to rescue some of their property in the fire

Nevertheless, he admitted that the police don’t have enough resources to man all the police units in order to cater for such disasters.

Appeal for restitution

One of the affected traders, Ketty Rukundo, appealed to government to support the traders to recover from the fire loss.

“We only recently resumed work, after the lock down, and this has happened. If government could help us to reconstruct our structures and pay our loans so that we can cater for our children, it would be a big help,” she said.

Others like Byansi Muhammad appealed to the president to come to the rescue of the vendors who were already affected by COVID-19.

“This is a double pandemic to the traders’ entire household income. I appeal the office of the disaster and preparedness to come and help them,” Muhammad said.

He adds that some of the traders had loans in different banks and requested that their payment be rescheduled,

“I don’t think these people will be able to clear in time; they should be added some time.”

Mbarara Deputy Town Clerk, Richard Mugisha says as the City Council they will deliberate and consider how best to help the traders.

“It would be premature for me to say what we as a council are going to do for the affected vendors, since this has just happened. We shall have a meeting on Monday with our political leaders, make an assessment of the extent of the damage, then come up with a clear plan on how to help them,” he told theCooperator in an interview, Saturday.

“But we also appeal to the other relevant central government offices especially the disaster management department to see how to come in and help our traders,” he added.

COVID-19 effect

Trader, Lawrence Birungi, says the COVID-19 restrictions on mobility had hampered traders’ ability to reach the market in time to save some of their property after they got news of the fire outbreak.

“Even if we wanted to rescue our property we were not allowed by police to move because of the curfew. Moreover, even bodabodas which are the easiest means of transport were stopped from carrying passengers because of COVID-19,” he lamented.

Some of the vendors looking on as the police extinguishes the fire.

In addition, Mugisha, says the COVID-19 restrictions have dampened business performance of the former Mbarara Municipality.

“Most of those businesses have not been paying our local revenue since they were not working, and up to now they are yet to get to full capacity because of social distancing and the curfew,” Mugisha explained.

He adds that levies on some businesses had to be slashed in response to the slowdown in business.

The Deputy Town Clerk says the market was especially affected because, prior to curfew, some traders used to operate up to midnight while markets like Nyamityobora that were known to operate for up to 24 hours are no longer working.

“COVID-19 affected our revenue levies substantially. As council, we estimated that the impact of COVID-19 on businesses was 80%, and therefore we reduced the payment for those which are still operating by an 80% margin as well.”

Disaster-proofing city structures

Mugisha says the new Mbarara Central region market has been installed with fire extinguishers to cater for such disasters in the future.

“Yes we have the fire mitigation measures already in place for the new central market construction,” he said.

However, he opined that such disastrous challenges sometimes emerge from reckless traders who don’t provide security for their businesses.

“Yes we can mitigate but the fire could have come from a candle or out of carelessness caused by some people within the market.”

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Government sets up fund to protect SACCO members’ savings

Government has established a contingency plan for members that may lose their monies in Savings and Credit Cooperative Organizations (SACCOs).

The latest safeguard has been established in form of a special Savings Protection Fund for SACCOs, with the aim of shielding members from unforeseen losses that usually arise out of management deficiencies or embezzlement tendencies in associations.

Established under the recently gazetted Tier 4 Microfinance Institutions and Money Lenders (SACCO) regulations 2020, the fund provides for compensation of members of savings and credit organizations for loss of their savings.

The regulations that were signed by the Minister of Finance, Planning and Economic Development, Matia Kasaija, were finally gazetted on July 7, to fully operationalise the Tier 4 Microfinance Institutions and Money Lenders Act, 2016, which established the Uganda Microfinance Regulatory Authority (UMRA) as a licensing and supervisory agency for SACCOs.

According to the regulations, SACCOs are now required to contribute an annual premium of 0.5 percent of their annual savings to the Protection Fund, which will directly be managed by UMRA.

The regulations put in place penalties for SACCOs that fail to comply with the requirements. Under its mandate, the regulatory authority has can suspend licenses of any microfinance institution over noncompliance with the regulations.

The State Minister in Charge of Microfinance, Kyeyune Haruna Kasolo, explains that the fund is somewhat similar to the Deposits Protection Fund that protects deposits by a certain percentage of the monies they hold in the event a commercial bank becomes insolvent.

He says the contingency fund is part of a well thought-out approach to strengthen the microfinance sector in the country and build public trust in SACCOs which have proven their capacity to improve the livelihoods of local populations by offering them affordable credit.

In the recent past, thousands of depositors affiliating to the various SACCOs have suffered losses as result of dishonest managers disappearing with the institutions’ finances.

The minister indicates that the new law mandates the authority to directly supervise the institutions at any time, as a way of preventing such eventualities

The gazetting of the regulations according to UMRA has also outlawed the operations of any SACCOs, Money lenders and other non-deposit taking microfinance institutions without valid operations licenses renewable on an annual basis.

Among other salient aspects, the regulations also demand that SACCOs submit to the authority their monthly returns on capital adequacy and liquidity statements.

UMRA was established by an Act of Parliament in 2016 with the aim of promoting a sound and sustainable non-banking financial institution’s sector, to enhance financial inclusion, financial stability, and financial consumer protection among the lower income population of the country.

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UPDATE: Masindi RDC gives Kinyara, out growers’ association ultimatum to agree on new sugar price

Masindi Resident District Commissioner (RDC), Martin Mugabi, has given Masindi Sugarcane Growers Association Limited (MASGAL) and Kinyara Sugar management one week to sort out their grievances over the sugarcane price for this financial year.

This was during a mediation meeting between the two parties that the RDC called at his office on Tuesday this week to resolve the impasse between the parties.

The meeting came after MASGAL rejected the price of 91,586 shillings for a tonne of sugarcane that Kinyara Sugar announced for this financial year which MASGAL says was reached without consulting them.

On July 1, 2020, Kinyara Sugar Ltd issued a new cane price for the 2020/2021 financial year which would be Shs. 91,586 per ton of sugar cane sold by the out growers. This was a decline from the previous price of Shs 108,200 shillings per tonne in the last Financial Year.

Speaking to the cooperator news a after the closed meeting, RDC Mugabi revealed that during the meeting the parties agreed to continue dialoguing on the matter with the aim of arriving at a mutually agreeable price.

“Another meeting will be held next week during which the two parties are expected to reach a consensus. I however appeal for calm from the farmers as the parties dialogue to ensure peace and prosperity in the area”, said Mugabi.

The chairperson Masindi Sugar cane out Growers Association Limited (MASGAL), Cosmas Byaruhanga, said they are ready to dialogue with Kinyara over the matter.

“The farmers would not have protested the price that Kinyara announced without consulting them if it was on the higher side,” Byaruhanga said.

Here’s our original story on the ongoing feud between Kinyara Sugar Ltd and the Masindi Sugarcane Growers Association Limited (MASGAL) about the cane price.

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Kasese traders vow to reward president for market

Traders in the Western Uganda district of Kasese have vowed to reward President Museveni handsomely for a new market currently under construction in Kasese town.

Construction of Kasese Central market is being carried out by the government of Uganda with funding from the African Development Bank [ADB] under the Markets and Agricultural Improvement Program project (MATIP) currently in its last phase in the country. The market is scheduled for completion in February next year.

”We are thankful to the president for this market, and come February when he comes to hand it over, we shall have a big gift awaiting him,” Wilson B. Wahemba, the Chairperson of Kasese Central Market Traders and Vendors Association told theCooperator. He, however, declined to specify the nature of gift the vendors have in store for the president.

Nevertheless, Mr. Wahemba says the market is too small to accommodate all the traders interested in occupying it.

“While we appreciate the work so far done, this market remains too small to handle the number of traders were already have,” he said.

He noted that the number of vendors has grown from 800 to 1200 ever since construction of the market started in 2017, yet the available stalls and lockups stand at 846.

According to the Mayor, Kasese Municipality, Mr. Godfrey Kabbyanga, clear guidelines for governing the new market need to be put in place early enough to ensure a smooth transition once it is completed.

“We have always had problems transitioning from makeshift to modern markets. This time a proper procedure should be followed,” the mayor said.

Mr. Kabbyanga also pointed out major shortcomings of the new market, including the fact that it has no provision for restaurants, banks, clinics and other facilities.

However, Eng. Gabriel Fataki, who is overseeing construction works, says that all the missing amenities will be catered for using the project’s contingency fund.

“This market will contain everything including banks, restaurants, places of worship and so on,” Eng. Fataki stated.

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Swedish Energy Agency Terminates Carbon Credits Agreement with Green Resources

The Swedish Energy Agency (SEA) is terminating its agreement to purchase carbon credits from the Norwegian forestry company, Green Resources—finally recognizing the devastating impact the company’s plantation has had on local communities in Kachung, Uganda.

Citing the ongoing legal dispute over land and the inability for farmers to graze their cattle within the forest, the SEA’s decision comes after five years of research and advocacy by the Oakland Institute, documenting forced evictions from the land locals depended on for agriculture, grazing, and forest produce.

The Institute’s first report in November 2014, The Darker Side of Green: Plantation Forestry and Carbon Violence in Uganda, exposed the devastating impact of the Green Resources pine plantation. But it was only after the Institute’s third report, released in August 2019, along with the actual eviction notices served to the local farmers, that the SEA announced its suspension of payments, and eventually termination of the agreement in March 2020.

“Despite solid evidence and documentation, Green Resources and its financiers, including the SEA, callously, not only turned a blind eye to the victims of their ‘green’ fraud, but also dismissed our findings,” said Anuradha Mittal, Executive Director of the Oakland Institute. “If they had paid heed to the concerns raised in 2014—which should have been obvious to the SEA if due diligence had been done from the get go—Green Resources could not have gotten away with causing hunger, displacement, and distress amongst the population of 17 villages for this long,” Mittal continued.

On March 10, 2020, Development Today reported that the SEA terminated the agreement because of concerns over the ongoing land dispute and the unresolved issue of cattle grazing not allowed in the plantation. The SEA claims the work done by the Oakland Institute did not impact its decision, however, their findings are in line with its past research and advocacy. Hans Lemm, CEO of Green Resources, however, blamed SEA’s decision on the Oakland Institute.

“Land grabbing from Ugandan villagers to set up non-native pine plantations is a false climate solution, designed to allow polluters in Northern countries to continue with business as usual. This is the cautionary tale that Mr. Lemm should learn from, instead of placing blame elsewhere,” was Mittal’s response to the CEO.

Despite ample hard evidence, public investment funds of Norway and Finland—Norfund and Finnfund—are the primary shareholders of Green Resources since 2018. They have financed the company over US$62.5 million (NOK 600 million) . The question is now how long Norfund and Finnfund—supposed investment vehicles for developing countries—will remain complicit in its wrongdoing.

The SEA’s decision is another step towards justice for local communities. The Oakland Institute renews its call for Green Resources and its financial backers to be held responsible. The protracted misery inflicted on Kachung’s communities can only be rightfully addressed with the immediate end of this devastating project, so that they can reclaim their land and livelihoods. (SOURCE : OAKLAND INSTITUTE )

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Do not charge for registering SACCOs, minister warns.

The Minister of State for Microfinance, Haruna Kasolo Kyeyune has cautioned district officials against charging community members for registering Savings and Credit Cooperative Societies (SACCOs).

Minister Kyeyune issued the warning on Friday March 13, 2020, at Hotel Leslona, Moroto while launching the Presidential Initiative on Wealth and Job creation (EMYOOGA) in Karamoja region. Under the initiative, government will provide funds for cooperators in Small and Medium Enterprises (SMEs) to boost their incomes.

The warning followed complaints by several local community members that some district officials demand money from members before registering their SACCOs, a service that the minister says ought to be free of charge.

READ ALSO:Cooperatives to hit 20,000 by December – Kitandwe.

“This is a serious offence, and whoever is found charging members of the public for registration of their SACCO will be dealt with,” Kyeyune said.

He also advised the leaders of Karamoja region against politicizing the Presidential Initiative saying that would affect the core objective of the program which is to lift Ugandans out of poverty.

“This initiative is for everyone, regardless of where you belong; it is non-discriminative,” he said.

The regional launch was attended by district LCV chairpersons, Resident District Commissioners (RDCs), District Commercial Officers (DCOs), Political leaders, District Internal Security Officer (DISO) and representatives from the business community in Karamoja region.

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