Masindi Municipality Councillors irked by delayed disbursement of Emyooga funds.

Councillors from Masindi municipality are disappointed by the delayed disbursement of over Shs 500m meant to fund more than 10 Emyooga SACCOs in Masindi Municipality.

The Councillors, who expressed their discontent at a full Council sitting last Thursday, reported that the SACCOs have received the money on their accounts but are as yet unable to access it.

“I want the leader of government business to tell this Council the cause of this delay,” demanded Fatuma Nyangoma, the Councillor representing Bigando Ward.

However, Deputy Mayor, Zaina Byenkya, said she had no clear information on the matter and asked the Town Clerk to respond to the query.

In his response, Deo Kabugo, the Masindi Municipality Town Clerk blamed the delay on challenges with Post Bank, in which the SACCOs’ accounts are held.

“The money is on the SACCOs’ accounts and people should remain calm. When the issues are settled members will receive the money,” Kabugo assured the meeting.

Frustrated

The delay has affected over 50 SACCOs across Masindi district and frustrated hundreds of their members.

“The money is on our accounts, but whenever we want to access it in Post Bank, we are turned down. What is the motive behind this delay?” wondered one SACCO member who spoke to theCooperator on condition of anonymity.

Two weeks ago, Moses Kalyegira the Masindi District Commercial Officer told theCooperator that 54 Emyooga SACCOs had received Shs 1.6bn but members could not access it until their SACCOs had presented a certificate of registration.

He explained that the requirement to present the certificates, which was supposed to have been done prior to account opening, had been waived temporarily at the time, with the understanding that the SACCOs would acquire them before accessing funds.

Speaking at the time, Kalyegira intimated:

“The SACCOs were given a go-ahead to open bank accounts without certificates of registration because the State minister for Microfinance, Harunah Kyeyune Kasolo, wrote to the banks requesting them to allow the SACCOs to open the accounts without them,” and pledged that the SACCOs’ Managers would soon be able to access their money.

Registered; still no money

However, whereas the certificates of registration were issued two weeks ago, no SACCO has been able to access the money so far.

Earlier on Wednesday, different leaders, including the Masindi district RDC, the Manager Post Bank where the money is being held, the officials from the Microfinance support centre, Emyooga SACCO leaders and other stakeholders, held a closed-door meeting on how to handle the delay.

According to impeccable sources who were in attendance, the meeting was assured that SACCOs would soon be able to access the money.

Emyooga is Presidential Cluster Initiative on Wealth and Job Creation (Emyooga) and it was launched in the Bunyoro sub-region by State Minister for Microfinance, Harunah Kasolo Kyeyune last year.

At the time, the Minister revealed that government would inject Shs 620m into each constituency to fund businesses under 19 selected clusters that include Boda-boda riders, Salon Owners, Carpenters, Taxi Operators, Welders, Market Vendors, Journalists, Performing Artists and Mechanics, among others.

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Kikuube: 36 SACCOs receive Emyooga funds

Members of 36 Credit Cooperative Societies (SACCOs) in Kikuube district have received certificates from the Microfinance Support Centre (MSC), enabling them to access over Shs1 bn that was earlier wired to their accounts under the Presidential Initiative on Job and Wealth Creation (Emyooga).

Racheal Kobugabe, the Business Development Service Officer, MSC, handed out the certificates to the SACCOs’ members Tuesday at Buhimba sub-county headquarters and at Kabwoya primary school.

Kikuube District Community Development Officer, Annette Kabahaguzi, says that the 36 SACCOs were created out of 826 Emyooga groups. 18 of the SACCOs are from Buhaguzi East Constituency, while the rest are from Buhaguzi Constituency.

The 36 SACCOs will share a total of Shs 1.12 bn worth of Emyooga funds.

Speaking during the handover of the certificates to the beneficiaries, Kobugabe noted that the funds have been on the SACCO accounts since last year, but were inaccessible to members before getting they had received the certificates.

She noted that Youth Action for social, political, and economic development, Operation Wealth Creation, Microfinance Support Centre, and the UPDF will be responsible for the monitoring and implementation of the Emyooga programs.

She added that each SACCO will be required to pay 8% interest on the money received to the government per year.

Kobugabe warned SACCO leaders against unscrupulous people who may infiltrate their SACCOs and associations to cheat the members.

“Nobody should come out of your association and tell you to pay money before you can access these funds. The government, through MSC, paid for passbooks and bylaws in order to expedite the process of releasing the funds. The only money you are supposed to pay is for your savings or shares,” she advised.

Amuran Tumusime, the Resident District Commissioner, Kikuube district, commended the government for the Emyooga initiative, which he said will help citizens to create jobs and fight against poverty.

However, he challenged the beneficiaries to put the money to proper use.

“This money is for helping you to develop yourselves and move out of poverty, so when you get it, don’t use the money for alcohol, weddings, buying clothes, or marrying second wives,” warned Amurani.

Steven Itaza, the MP-elect for Kikuube district, also called upon the beneficiaries to invest in enterprises that will enable them to multiply the funds such as commercial farming, goat rearing, and boosting on their already existing businesses.

While most beneficiaries expressed excitement about the capital that they hope will help them to boost their businesses and create jobs, others complained that the Shs 30m given to each Emyooga association is very little, given the number of members in some associations.

Fred Wairima, the Chairperson of Buhaguze East Produce Dealers that has 1800 members, wondered how he would distribute Shs 30m among all the members.

“All these members need at least to share some of this money. How will I distribute 30 million shillings to this number,” he demanded and called on the government to allot more money to the larger Emyooga associations.

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Poor management to blame for collapsing Lango SACCOs-Expert

Savings and Credit Cooperative Organizations (Saccos) in Lango Sub-region are collapsing due to mismanagement, experts have said.

Speaking during a 5-day training of Acan-pe-Kun SACCO members on Thursday, the Chief Executive Officer of Ngetta Tropical Holdings, Paul Omara, said that, so far, five prominent SACCOs in Lango have collapsed in the past two years, and more others are on the verge of failure.

Those that have collapsed include Abutabera Youth SACCO in Apac district, Aloi Women SACCO in Alebtong district, and Dokolo United SACCO Limited in Dokolo district, among others.

Some of the co-operatives have also failed to repay the Shs 198m that they borrowed from the Government through the Microfinance Support Centre, while members are in court seeking a refund of their savings and shares in billions of shillings.

But Omara, an Economist and former banker pointed out poor management, political influence and conflicts between the SACCO boards and managers as major issues tearing SACCOs apart.

He noted that oftentimes the SACCO Managers are responsible for their collapse because they embezzle members’ money.

“When you are electing board members, you choose the uneducated and then employ well-educated managers and other staff who manipulate the system and steal all the money. The board cannot supervise them because they do not know anything,” Omara argued.

Philip Otim, the Apac District Commercial Officer concurred with Omara’s diagnosis, adding in such cases it is difficult to prosecute the culprits.

“There are many managers who have run off with cooperatives’ money in this district. It is hard to prosecute them because they manipulate the board, banking on the members’ limited education. There are so many such cases in court,” Otim said.

Acan-pe-Kun SACCO Limited was opened in 2011 by farmers in Chegere Sub-county. The SACCO, which has a loan portfolio of Shs 975m, operates on its own piece of land and office premises at Ololango trading centre, Chegere, Apac district.

Allan Okii, the cooperative’s Chairperson, says they have 473 members who are committed to the aspirations of the SACCO.

He appealed to the government to provide cooperative societies with low-interest agricultural loans to enhance their production and alleviate poverty.

“The major goal of SACCOs is to promote access to finance, especially among the poor who are actively engaged in any economic activity. The government should extend soft loans to SACCOs with the interest of as low as 1 per cent to help eradicate poverty,” he said.

In June last year, the Prime Minister, Dr Ruhakana Rugunda, said the government was considering strengthening SACCOs in rural areas in order to fight household poverty.

“We are studying how to strengthen the SACCOs because the Youth Livelihood Programme (YLP) and Uganda Women Entrepreneurship Programme (UWEP) as measures to reduce poverty have made little impact,” Dr Rugunda said.

The Prime Minister said the YLP and UWEP funds had been abused to the extent that the beneficiaries had failed to repay the money yet they are supposed to be revolving funds.

He added that despite the government injecting billions of funds into the programmes, little has been achieved on the ground.

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Bwijanga Coffee Cooperative targets coffee processing machine

Bwijanga Coffee Cooperative Society Limited in Bwijanga Sub-county, Masindi district is in the process of acquiring a coffee processing machine that will enable them to add value to their coffee.

According to Benedicto Ssensaga the Chairperson, Bwijanga Coffee Cooperative Society Limited, the processing machine will be established in Kikingura village Kitamba parish Bwijanga sub-county.

“We are now going to benefit from our coffee because we going to add value to it instead of selling raw materials. We have enough coffee to feed the machine, and I am optimistic that our economic status is to change due to this investment,” he explained.

Ssensaga says that the members of the cooperative have a combined acreage of over 500 acres of coffee, a figure he predicts will rise even higher since they are still admitting more members.

MAAIF support

Ssensaga also revealed to theCooperator that the cooperative has secured the support of the Ministry of Agriculture Animal Industry and Fisheries (MAAIF) towards its goal of acquiring the coffee processor.

“Last year, we were told that we would be supported under the Agriculture Cluster Development Program (ACDP). Under the matching grant, we were asked to contribute 33% of the price of the machine, which amounts to 75 million shillings, and the government promised to put up the remaining 230 million shillings,” said Ssensaga.

He explained that the coop’s contribution will be made in form of materials and land.

“We already have the land and have bought the necessary building materials,” he said, adding that they are now waiting for the relevant district officials to come and assess the situation on the ground.

“In the meantime, internally we are mobilizing our members to ensure that they solicit for the required money to bring the machine to our cooperative.”

Simon Wairima, the Cooperative Secretary, revealed that some of the necessities have been acquired, including a Tax Identification Number, Pro forma invoices from the machine supplier, and developing the farmers’ register.

Last Thursday, the concerned district officials and the cooperative’s leadership had a planning meeting on how to proceed.

About Bwijanga Coffee Coop

Founded in 2019, Bwijanga Coffee Cooperative Society Limited already has over 1000 active members drawn from the entire Bwijanga sub-county.

The same cooperative introduced a saving scheme last year that requires every member to buy a minimum of two shares, each at Shs 30,000.

Bwijanga Coffee Cooperative Society Limited is one of four active coffee cooperatives in Masindi district, the others being Karujubu Coffee Cooperative Society Limited, Pakanyi Coffee Cooperative Society Limited, and Alimugonza Coffee Cooperative Society Limited.

Coffee growing has picked up significantly throughout Masindi district following the distribution of coffee seedlings to farmers by the Uganda Coffee Development Authority (UCDA) under Operation Wealth Creation (OWC).

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Locals protest Lango Cooperative Union land lease to German investor

Residents of Angayiki Village in Chawente Sub County in Kwania district, numbering 130 are protesting the lease of 1,165 hectares of land by Lango Cooperative Union to Smaz Group, a German investor.

theCooperator recently reported about the lease agreement between LCU and the German investor.

In a letter dated 8th of January, 2021, and addressed to LCU Chairman, Maxwell Akora, Okwir, and Company Advocates, acting on behalf of Among Agnes and 130 others, protested the proposed giveaway, saying the land in question does not belong to the Union.

Contested ownership

Ownership of the land in question has been in contention for more than a decade now.

In 2011, Lango Cooperative Union took the 131 residents of Angayiki to court, accusing them of encroaching its land at Angayiki which measures 1, 165 hectares, a matter still pending before Lira High Court Magistrate, Jeneva Natukunda.

Daniel Odongo of Okwir and Company Advocates says the resolution made by Lango Cooperative Union on the 26th of June, 2020, to lease the land to the investor was in disregard of the ongoing court process. The case is next due for hearing on the 2nd of March, 2021.

“The leadership of the Union should first remain patient. Why are they leasing out the land, yet the matter is still pending in court? Let court handle the matter,” Odongo said.

Moris Obua, one of the defendants and a resident of Angayiki, claims that the land in question is customary land.

“That land does not belong to the Lango Cooperative Union; that land belongs to us. It is customary land that we inherited from our forefathers; that is why we are still pursuing the case up to now, waiting for the court pronouncement,” he said.

In the protest letter seen by our reporter, Odongo accuses Akora and others of committing illegality and causing the suffering of over 300 people of Angayiki. He gave Lango Cooperative Union 14 days to revert to them in case it is no longer interested in the matter that it took to court.

However, Maxwell Akora, the Chairman Board of Directors of Lango Cooperative Union and also the Maruzi County Member of Parliament, told theCooperator that the land in question is already vacant because the said locals had already been evicted from it.

As a result, he said, said the Union may consider withdrawing the court case and proceed with the leasing process.

“Yes, we earlier ran to court but the Microfinance Support Center evicted the locals, so we are now thinking of removing the case from court and going on with leasing out the land to an investor,” he said in an interview.

Members of the community say they suffered a loss in 2016 when the Microfinance Support Center destroyed their houses and properties to attach the land over a Shs 2bn debt owed to it by Lango Cooperative Union. However, an injunction was later ordered against the eviction exercise.

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Excess rain blamed for low cotton production in Kasese

Cooperatives and farmers dealing in cotton in Kasese district have decried the lower than expected production of the cash crop as a result of unusually high rainfall experienced last season.

Cotton farmers who spoke to theCooperator said the excessive rain led to a delay in the cotton harvest in Kasese, thereby negatively affecting the quality of the crop and ultimately resulted in reduced prices.

According to Adrian Katwetegeke, the in-charge of the Uganda Cotton Development Authority at Nyakatonzi Cooperative Union in Kasese, over the last two seasons the price of cotton has dropped from between Shs. 30,000 – 35,000 a barrel to Shs 20,000 currently due climatic conditions.

“Cotton is one of the crops that require a little rain, but for the last two years, Kasese and Uganda, in general, have been experiencing too much rain, leading to low production,” Katwetegeke noted.

Moreover, he added, the overabundant rainfall affects farmers’ ability to spray their crop on time.

“Spraying must be done on time in order to have the desired effect. Our farmers often wait to be told that their gardens are due for spraying, especially when it is raining a lot. By the time they are ready to do it, it is too late for them to save the gardens.”

Enock Nyabwangu, a farmer revealed that cotton needs a moderate amount of water for optimal growth. He says a good cotton plant should produce twenty or more flowers per season.

“However, this season, each plant has only 10-15 flowers. This means that the profit will be less than what we used to get due to climatic conditions ‘, Nyabwangu said.

Nyabwangu and Elias Muhingo, another farmer, advocated for the establishment of irrigation schemes in order to increase cotton production in Kasese and Rubirizi districts.

“Irrigation would help farmers plant cotton during the dry season and reduce the dependence on nature,” the duo said.

Kasese district established a mini irrigation scheme in Katholu in order to help cotton farmers produce even during the dry season, but a lot more needs to be done to maximize its benefit to the farmers, according to the district Chairperson Geoffrey Sibendire.

Cotton growing tips

Lilian Kiiza, a Cotton Extension Officer in Kasese, revealed the principles that farmers need to follow if they are to maximize benefits from growing cotton.

“They need to follow five principles,” she stressed. “Ensure early land preparation, then plant, thin, weed, and spray it on time.”

Kiiza also advised farmers to engage extension workers for advisory services, including getting guidance on the correct pesticides and other inputs to use.

“The challenge is that farmers buy pesticides from shops without any advisory services on how and when to apply them, which ends up affecting their crop. They should make use of available extension services for better yields,” she said.

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Agoro Cooperative members decry delayed repair of Irrigation scheme

Members of the Agoro Self-Help Irrigation Cooperative Society have denounced the delayed rehabilitation of the Agoro Irrigation Scheme in Lawmo district, saying the delay has robbed them of the livelihood they earned from growing rice.

The 187 members of the cooperative used to depend on rice growing as their main source of earning. But last year a team from the Ministry of Water and Environment stopped rice growers from using the irrigation scheme until it has been rehabilitated.

The Scheme was last rehabilitated between 2012-2013 to a tune of Shs 27bn, but a few years after, the water pipes got damaged and parts of the canal silted.

In 2019, the government, through the Ministry of Water and Environment said it would embark on repairs to the said scheme, with the project expected to cost Shs 6bn, after it was abandoned by many farmers because of its poor state.

In March 2020, officials from the ministry delivered over 1000 water pipes to the site but, farmers say, the pipes have been lying idle at the office premises of Agoro cooperative since then.

Affected livelihoods

Teopista Atim says it has been growing rice since the year 2000. She used the proceeds from rice to buy land, build a house and educate her four children.

She said in the early 2000s, her annual earnings from growing rice ranged from Shs 10-12m from 17 acres.

“At the time, the price of rice per kilogram was still low,” she quips.

However, the last time she planted 10 acres of rice in 2019, she earned Shs 16 million.

With the deterioration of the irrigation scheme, however, her source of income has been adversely affected.

“I used to grow rice which could give me a lot of money. But my production level started going down in 2013 because the irrigation scheme was poorly rehabilitated.”

Atim says the irrigation was poorly done, such that the water channels are below the gardens, thus farmers have to set up obstructions by piling sacks of sand to have water flow into their gardens.

“They [Ministry of Water and Environment] promised to start repairing the irrigation scheme in 2020 but they are yet to show up,“ she narrates.

Unable to grow rice, as usual, she tried other crops. It would end in disaster.

“Last year, I planted 10 acres of maize, which was destroyed by floods. I only harvested 3 bags of sorghum, which I used to brew malwa,” Atim said.

Margaret Oryema, another rice farmer, says she started growing rice before the irrigation scheme was rehabilitated, and used the proceeds to pay school fees for her three children up to university level, single-handedly. She also completed constructing a house which her husband started and failed to complete.

Oryema said she used to raise between Shs 7-10m from growing rice on her 8-acre farm before the rehabilitation of the irrigation scheme went awry.

However, last year she did not plant rice and does not expect to earn much this year if repair of the scheme is not expedited.

“Last year we never planted rice. And we are not sure of this year because work on the irrigation scheme has not even started. I no longer have money in my account because rice was my main source of income,” Oryema said.

Denis Ocan, another member of the cooperative, expressed disappointment with the fact that the affected farmers have received no update on the start date of the planned repairs despite a delay of almost a year so far.

No funds

Brenda Akao, the Communications Officer in the Ministry of Water and Environment in Northern Uganda, admitted that the ministry had delivered pipes for rehabilitating the irrigation scheme, but they are awaiting some funds before the repair works can start.

“Yes, I can confirm that we delivered pipes there. But we are now waiting for funding. Our commencement of work there will depend on the availability of funds,” Akao said.

The government adopted an irrigation policy in 2018 to improve agricultural production, with one of the implementation strategies being to construct 70,000 small irrigation schemes countrywide- one for each parish.

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Lango Cooperative Union leases 11-square kilometre land to German investor

Leaders of Lango Cooperative Union have leased out a sizeable chunk of its land assets to Smax-Group, a German investor, in a five-year deal that will see the investors develop the redundant land.

The land that measures about 1,165 hectares (about 11.65 square kilometers) is located in Angayiki village, Chawente Sub County, Kwania District.

Formed in the 1950s by cotton farmers in the greater Lango sub-region, Lango Cooperative Union lost all its assets in the early 1980s to commercial banks and some unscrupulous individuals.

However, the union later reclaimed its land in Angayiki in the ongoing struggle to repossess its prime assets.

Maxwell Akora, the Lango Cooperative Union Chairperson, who doubles as Maruzi County MP, says the union has leased out the recovered Angayiki land, a move aimed at generating funds for the operationalization of its primary societies.

“The long-term lease of the land will see the investor pay 1.1 million shillings per acre to the union. I believe this will secure the land from encroachers and bring benefits to all our primary cooperatives,” he said in an interview.

“The land has not been sold, but leased out for a period of five years, to raise money to help the 144 primary societies under Lango Cooperative Union, “Akora said. He said the move will generate Shs 1.3 bn in seed capital for farmers, to be recycled every season to run the union’s activities.

He noted that while the union had received Shs 2 bn from the government out of the Shs 17 bn owed to it in compensation for losses made during the 1981-1986 guerrilla war that brought the NRM/A into power, that money alone is not sufficient to run the union’s activities.

According to Akora, the German Investor will develop infrastructure, set up irrigation systems, process and distribute quality seeds to farmers and later buy from them at good prices for export.

“After the lease period elapses, the assets built by the investor will remain in the possession of the Union,” he said.

The Union Chairperson further revealed that according to an MoU signed with the union, the German investor will build a technical school for training farmers, and 15% of profit gained by the investor will be shared by Lango Cooperative Union.

“They have already surveyed the land; they will rent the land for growing soya beans and cereals like maize, beans and support farmers in all the 144 primary societies.”

Tom Neo, one of the prominent farmers in the district and a member of Alira Primary Society commented, “The Union leadership needs to be transparent and accountable. Leasing out the land to an investor is a good move only if they can be transparent about it to members.”

Another farmer, Brenda Akidi of Aninolal Primary Cooperative Society, welcomed with excitement the move to lease out the land to an investor, saying it will not only save the land from encroachers but also provide jobs to farmers.

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