We don’t take bribes to register cooperatives

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By Egessa Hajusu

The registrar of cooperatives Joseph Kitandwe has refuted claims that his office demands for bribes in order to register cooperatives.

“This is a very serious allegation I am hearing it for the first time,” Kitandwe said, and challenged the Cooperator to name its source which is contrary to journalistic principles of protecting sources.

Responding to a question from the Cooperator that his office demands for bribes from cooperatives before registering them.

A number of cooperatives seeking to be registered in Bukedi sub region told the Cooperator that the registration process at the registrar of cooperatives takes longer than the required two weeks period.

The cooperators that requested for anonymity for the feat of being victimised also claimed that they are compelled to pay bribes before getting registration.

Some claimed that their documents have stayed at the registrar’s office for more than three months because of being not able to meet the demands of the registrar’s office.

However, speaking to the Cooperator in a telephone interview Kitandwe dismissed the allegation as baseless and challenged those claiming to have bribed his staffs to name them, vowing to take action against the implicated officers.

He believed some people could be acting as middle men and pausing as commercial officers in his office so as to extort money from the unsuspecting members of the public (cooperators).

Concerning registration, he said, according to their rules, the standard period for registration should be two weeks.

Each case is unique in its way, some may delay because of the clients taking long to respond to the queries raised by the registrar’s office.

All the clients are issued with acknowledgement chits as we receive them to ensure they don’t claim to have submitted in their documents earlier to prevent concerns like this.

“But we are also not compelled to register them anyway,” he said adding that if everything is in order, registration doesn’t take long.

He said he could not give a general comment because each case is different and appealed to those willing to register their cooperatives to feel free take them and directly report to him those asking for bribes.

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Eastern Region elders embrace Sacco’s

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By Egessa Hajusu

The elderly people in Eastern Uganda have embraced savings and credit cooperatives (SACCO’S) so as to participate in the area’s social economic development.

Speaking to the Cooperator in telephone interview, John Peter Eremu Anyau the area deputy national chairperson elders league who coordinates the exercise said, the elderly have been left out and ignored because they are looked at as stale people, only waiting to die.

“We have wide experience in handling money and so we want to get involved in offering financial services, he said and noting the elderly that are still active, should be able to fend for themselves and stop relying on their overburdened children.

Some districts in the region have already been cleared by registrar’s office while others are in registration and formation processes, in the exercise which was launched last year.

The plan, Anyau said, is to enable all districts in the region have a big Sacco at a district level to address the problem of small mushrooming Sacco’s at the sub county levels.

“This will serve the purpose of efficiency, effectiveness and strength,” Anyau said adding that inadequate capital has been the main reason for the collapse of many Sacco’s. Eastern regional is comprised of of Bukedi, Busoga, Bugisu, and Sebei sub regions.

The district Sacco, Anyau said is made up of thirty elderly people from each village registered at respective sub counties as community based organisations, with a selected enterprise to undertake.

The group buys a minimum of two shares at shillings twenty thousand in addition to a membership fee of shillings ten thousand.

The membership of the elders Sacco’s, he said, is also open to the general public but the executive committees are run by people aged sixty years.

On the Sacco’s financing, Anyau said, just like other businesses in order for the Sacco’s to operate effectively and on daily basis, they will access financing from loans, grants and other sources of funding.

“We are trying to avoid a situation of entirely relying on savings from our shareholders, and avoid stagnation by waiting for the borrowed money to be brought back before new transactions begin,” he said.

District Sacco’s should be able to make profits, cater for their expenses and generate surpluses for the purposes of development.

He appealed to districts that have not completed registration to expedite the process saying commissioning of SACCO’s will soon being.

Zachariah Wanyama the chairperson Busia district elders Sacco said, their long term object is to start a Bank, medical scheme and create centers where the elderly can be taken care off.

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How is Your Co-operative Performing in the Digital World?

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Digital technologies are changing the lives of customers and patrons. Social Media provides them with a new voice. Mobile devices and online platforms alter what people expect from businesses. And ‘big data’ is giving organizations the opportunity to understand and fully engage with their stakeholders – whether these are members or customers.

In light of this, it is important to ask how your co-operative is using digital tools. It is equally important to explore how your co-op is performing in these four areas: Social media, mobile and digital customers, Big data, and Governance.

Social media impact

Social media is not a one-stop solution. The digital revolution is developing so quickly that it is essential for businesses to stay on top of developments and trends. In a fast-moving world, it is easy to get left behind.

Like other business entities, Social media can help co-ops build their brand. It empowers you to go beyond corporate messages and communicate specific and everyday activities directly to customers, members and the wider public.

Co-operatives, particularly those with a membership that includes employees or suppliers, may want to use social media as a means of getting closer to members. In smaller co-ops, social media tools enable members to talk and collaborate more regularly. In larger co-ops, where direct engagement is often limited, social media offers a new opportunity. In case you want to publish longer and descriptive content, you may want to publish a Blog aside your website.

Digital innovations

Mobile technology has had a big impact in the finance and banking sector. With mobile banking on the rise, there are now more points of contact with customers and members than ever before. For financial co-operatives, mobile has clearly begun to change the relationship with customers and members. You may want to create web and smartphone apps to respond to your customers’ wishes for easy access to their accounts.

While the development of mobile platforms may be most obvious for the financial co-ops, it is impacting agricultural co-operatives too, enabling farmers to connect with one another and their co-op, and run their businesses more efficiently.

Agricultural co-ops should also adopt a system of engaging with members via mobile technology in different ways, from simple operations such as checking weather forecasts and the price of grain, to managing data about livestock, plots and finance on the farm.

Digital governance

If patrons and consumers have become more digitally connected, so have co-operative members.

For many larger co-ops, the use of digital tools is an effective way to give members a sense of proximity to the business. This is of most pressing significance for big co-operatives which cannot provide simple or regular ways for members to meet or physically interact with the co-operative. But it is just as important for smaller co-operatives, giving members more opportunities to engage and interact with the business and with one another.

A crucial ingredient of member democracy in a co-operative is an informed membership that can be in regular communication with the executive and governing bodies. Many co-ops have identified social media as a means of communicating with members. For many, the flow of information is one-way – from co-op to member – but two-way interaction is also possible.

Co-ops should also adopt the use of digital tools to allow members to vote online and facilitate discussion and decision-making among board members.

Digital tools, it seems, are proving an important part of co-operative governance. The importance of digital tools is even more significant for the future.

Whether it’s engaging with customers and members, running daily operations or governing the co-op, digital tools will play a vital – and increasingly important – role in the future of co-operatives.

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OPINION: Uganda needs more of producer and marketing cooperatives and less of SACCOs

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By James Abola

In the 1950s when Africans realised they were firmly stuck at the bottom of the economic ladder, they started forming cooperatives. All over the country, there were producer and marketing cooperative societies that reduced the cost of agricultural production for peasant farmers while increasing their income through better bargaining power.

When the societies joined and formed unions, they got stronger bargaining power as well as pride in their work. To address the challenge of availability and affordability of credit, the unions formed a bank that served them well until this was changed by the ruling government.

The death of the Cooperative Bank Limited in 1999 accelerated the death of Cooperative Unions and Cooperative Societies across the country. For some reason, the government started campaigning for the formation of Savings and Credit Cooperative Societies (SACCOs) about 10 years ago.

The government promoted SACCO model requires a group of say teachers or veterans or car washers to form the cooperative society. Once the society is formed, then government can give a grant or low interest loan to it for onward lending to members.

There are few differences between the cooperatives of the 1950s and the 2010s. The 1950s societies were value creating groups of people. They used the society to source for production inputs at a discount and to bargain for good selling prices for their produce. Today’s societies operate like money distributing entities. Most members join SACCOs to borrow money instead of growing wealth.

The 1950s societies were largely the initiative of the members and the societies joined to form unions which handled national and international business for the co-operators. Today’s cooperatives work like stand-alone entities.

The benefits of working as a cooperative are still needed by the poor citizens of Uganda today. What is needed though are more of producer or marketing cooperatives and less of SACCOs. There are many benefits when the cooperative is initiated by members instead of government officials.

James Abola is a business and finance consultant. Email: james.abola@akamaiglobal.co.uk

Source: Daily Monitor

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Cooperatives strengthen large scale investment in agriculture -Kadaga

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Rebecca Kadaga, The speaker of Parliament of Uganda has called on government to restore cooperative unions saying they provide a better way of organizing production, markets and prices of agricultural products.

Kadaga was speaking at the second Uganda Netherlands business convention that took place on Friday in Amsterdam where she noted that cooperatives will boost the agricultural sector.

“When we were children, there was a very vibrant cooperative; Busoga growers’ cooperative Union, it actually lent money to the British government, we had much money that we were able to lend,” said Kadaga adding “that time the markets were certain, payments were certain, we need to go back to cooperatives so as to organize better the growing, marketing and payment.”

She applauded Parliament for a great job in the recent weeks for pushing government to consider reviving cooperative societies in order to improve the quantity, quality and marketing of products.

Francis Gonahasa ( MP Kibweri, Kibuku) assured the diaspora that he will on return to Uganda move a motion on restoration of cooperative societies. He said “unlike SACCOS, cooperatives strengthen large scale investment in agriculture which would boost the economy.”

Kadaga also applauded Parliament for moving government to come to the aid of maize farmers who have been grappling with a sharp decline in maize prices.

“I am not blowing my own trumpet but Parliament has been instrumental in the recent weeks, government has had to come up with a strategy to uplift farmers quickly by injecting money into banks to buy maize from farmers,” said Kadaga.

She added “I really hope that this money is accessible, because sometimes the minister says the money is in that bank but you can’t access it, we shall be watching to ensure this money is not only available and accessible”

The Uganda Netherlands Business convention which was run under the theme ‘advancing agricultural value addition” attracted Ugandan farmers, agriculture firms in Netherlands, agricultural research institutions and Ugandan community in Netherlands.

Source: Kampala Post

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Grain Watch: East African Grain markets and Trade Highlight

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Prices of grain staples eased marginally as stocks in the markets were adequate owing to harvest from the main seasons of Tanzania and Uganda and carry overstocks from the previous marketing year.

In South Sudan, the protracted conflict continued to disrupt trade with high inflation and fuel prices pushing prices upwards. Burundi and Rwanda, prices gained marginally in the second quarter as the countries were in the lean season. However, cross border trade eased demand pressure. In Kenya, imports from the region pushed prices of grain staples below the five-year average with harvest realized from the previous long rains season still in stock due to cheaper imports from the region.

In Tanzania, prices decreased towards the end of the quarter as stocks improved with the Msimu crop harvest. Uganda supply was on an upward trend following the main season harvest. There were no far reaching trade restriction in the region in the quarter. The main seasons in Tanzania, Uganda, Rwanda and Burundi were above average with improved yields compared to last year as a result of adequate and well-distributed rainfall.

Trade in the second quarter decreased seasonally in most countries within the region following improved domestic stocks from the main season harvest hence, Burundi and Rwanda had shortterm self-sufficiency as harvest commenced the end of the second quarter with Tanzania and Uganda harvesting from the month of May and June respectively. Intraregional trade in the second quarter of 2018 experienced fewer tariff barriers after the lifting of trade bans and no food subsidy programs compared to same period in 2017.

In South Sudan, the government lifted the long standing subsidy on fuel therefore the cost of transport is expected to increase and this will be reflected in the price of food staples; Currently, t rains have compromised access to markets as most roads are seasonal. Field reports indicated that trade between Uganda and Tanzania through Mutukula was affected by localized restrictions following a trade ban by Tanzania on import of beans to manage the plummeting prices in the country. In retaliation, Uganda instituted a ban on rice from Tanzania which is the major trade commodity along the corridor. In Rwanda, the Kabale-Gatuna-Kigali road traffic was directed to Kagitumba border as the road was destroyed by rains cutting off trade temporarily in May.

There has been a ban on paddy rice imports from Tanzania as the Rwanda Government is currently promoting domestic production of the commodity after heavy investment on equipment and machinery to support the Rwanda rice value chain. Trade between Kenya and Uganda remained vibrant in the second quarter, as prices in the

Maize: In the second quarter, a total of 130,651.6MT was traded in the region. This was a 24% decrease from the previous quarter volumes and a 16% decrease compared to the same period last year. A look at the seasonal trend shows that exports from Tanzania into Kenya have increased steadily since last year as restrictions on trade were relaxed late 2017.

Tanzanian exports increased atypically in the first quarter as result of higher carry-over stocks occasioned by the ban on trade, however, decreased in the second quarter as stocks tightened seasonally. With the inbound Msimu crop in late May from the southern highlands, exports to Kenya, Burundi and Rwanda are expected to increase in the third quarter. Uganda on the other hand was the top regional exporter of the commodity accounting for 60% of the trade. Prices were noted to be lower in the Ugandan

FULL REPORT

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UNBS lists high risk products in its July compliance report

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The Uganda National Bureau of Standards (UNBS) conducts regular market surveillance inspections to determine the level of compliance to Uganda Standards to protect consumers and the environment from dangerous substandard products.

In the month July 2018, the market surveillance inspectors picked 249 samples which were submitted to UNBS laboratories for further analysis. Among the tested samples, cosmetics registered the highest failure rate of 100%.

The cosmetics which failed contained hydroquinone, a banned substance used in skin lightening creams. Various scientific studies have confirmed that hydroquinone may have adverse effects on human heath such as damage to internal organs e.g. liver. As a result, UNBS moved to seize some of the cosmetics from the shelves.

Anti-bacterial toilet soap also registered the second highest failure rate at 71.4 per cent, followed by energy savers at 62.5 per cent and toilet paper at 55.5 per cent respectively.

UNBS Executive Director, Dr. Ben Manyindo, said: “We have published a list of brands that failed our compliance tests because we would like to encourage the public to look out for them and shun them while we continue to play our role of seizing them from the market to protect the health and safety of consumers”.

“Products that fail our compliance tests are seized from the market, kept in our warehouses for further management and/or destruction. We recently destroyed more than 400 metric tonnes of substandard products worth Shs3.5 billion,” Dr. Manyindo said.

The brands that have failed the UNBS compliance tests include:

Cosmetics
Local Hajjati Lususu; Mama Lususu; Sure Deal; Serious Herbal; Skin Doctor; Zero Pimples; Zonei;
Imported Caro light toning; Caro light body lotion; Caro light cream; Citrolight body cream; Eclaire cream; Elegance Rico cream; New Santana; Light Cream; Super Claire Cream; Elegance Rico cream;
Toilet Paper
Local Eden Brand; Cozy; Hemico; Kleena; Lovely; Luxury; Nannies; – Facial Tissue; Relax Blended Tissue; Silkee Jambo; Soft Nap; Softee Toilet Tissue; Super Silk; Swan Soft; Wisper; Kleena; Silkee Jambo; Softee Toilet Tissue; Luxury
Imported Piao; Piao Piao; Virony; Cosy White; Rosy; Sifa; Tena; Soft Wind Piao Piao
Mattresses
Local Eco Foam; Rio Foam.
Energy Savers (Bulbs)
Imported Canny; CIXING; DXBZ; Long stay; Nomi; Semco; Tedex; UNITEC; and Val Light.

As a result of the laboratory analysis, in July the UNBS Market Surveillance Team seized items 6.2 tonnes of assorted food items, 1.2 tonnes of Cosmetics, 2,051 pieces of mattresses, 410 Kgs of electrical items, and 450 kgs of toilet paper.

UNBS will continue to perform its mandate of enforcing standards to protect consumer health and safety and the environment against dangerous and sub-standard products.

Fighting substandard products requires a concerted effort involving UNBS working together with manufacturers, traders, consumers, and other government agencies. We would like to urge the public to report cases of substandard products on the market on our toll free line: 0800133133.

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QUOTE: Money at the service of life can be managed in the right way by #cooperatives -Pope Francis

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Pope Francis has repeatedly hailed cooperatives. Speaking to an audience in Rome, the pope said: “Cooperatives should continue to be the motor that raises and develops the weakest part of our communities and civil society.”

In Bolivia he spoke of how he has seen how cooperatives were able to create work where there were only crumbs of an idolatrous economy. He has often spoke about how he developed an enthusiasm for cooperatives when, as a teenager, he heard his father talk about Christian cooperativism.

Money at the service of life can be managed in the right way by cooperatives

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