Business
Political interference stalling cooperative movementsPublish Date: Sep 26, 2012
.
  • mail
  • img

By Eddie Ssejjoba

The Government has made the development of cooperative movements a priority intervention for social-economic development since they help in resource mobilisation, employment, increased production and value addition.

Trade minister Amelia Kyambadde, however, said cooperatives are still facing many challenges, including political interference, especially at lower local councils, and lack of effective member participation.

She said although savings and credit cooperatives are critical in addressing the challenges of financial exclusion in Africa, they are facing leadership and governance weaknesses and lack of appropriate knowledge and skills.

The minister was addressing the 13th Congress of the African Confederation of Cooperatives savings and Credict Associations (ACCOSCA) at the Imperial Botanical Hotel in Entebbe over the weekend.

The congress drew participants from several member countries in Africa, who hailed the UN for declaring 2012 a year of cooperative movements.

Kyambadde said many people in Uganda cannot access financial services, yet they would create jobs, increase production, add value to their produce and ensure quality and bulk marketing.

“In Uganda, we have about 12,000 cooperative societies. Our challenge is that many of the cooperative societies are not functioning as expected,” she said.

Kyambadde noted that the Government has embarked on intensive sensitisation of the people on the formation and importance of cooperatives and building capacity of staff through paying their salaries and training their leaders.

She said the law on cooperative societies should be reviewed to accommodate diversification of their activities.

Kyambadde added that the Government should create a micro-finance support center to offer wholesale loans to cooperatives and SMEs, with 9% interest per annum for agricultural and environmental loans and 13% on commercial loans.

Joseph Nyagah, the Kenyan minister for cooperative development and marketing, who is also the chairman of ministers of cooperatives in Africa, urged members to encourage the youth and women to join cooperative movements, adding that the average age of the over one billion cooperative members in the world is 65.

He said most cooperative members deal in traditional crops such as coffee, which creates the need for diversification to create new ventures that are attractive to the youth.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Involve us in Namanve land allocation, UMA asks govt
Officials from Uganda Manufacturers Association (UMA) have asked government to involve them in the allocation of land in Namanve Industrial Park to avoid being hoodwinked by fake investors who cannot develop it....
MPs warn government on coffee, banana diseases
Uganda’s coffee and banana shambas are under attack by diseases and this might cause huge losses to the country and to the farmers if the problem is not urgently checked, Members of Parliament have warned....
Gov’t risks losing billions through advances to foreign companies
A new wave of ethical and professional misconduct has hit Uganda’s construction industry, exposing government to risks of losing billions of funds as contractors connive with employees of banks and insurance companies to obtain fake bid securities and financial guarantees...
UAE Exchange conducts Iftar at Uganda National Mosque
The largest globally networked remittance brand UAE Exchange associated with Xpress Money conducted Iftar at Uganda National Mosque, as they offered food stuffs to Muslim brothers and sisters as a sign of showing the spirit of togetherness during this holy period of Ramadan....
ADB cautions African States against international borrowing
The African Development Bank (ADB) has cautioned African countries against high borrowing rates on the international market saying it could push them back to the 'debt disgrace.'...
URA to collect tax on rented houses, properties
Uganda Revenue Authority has revealed that it will soon begin collecting tax on all rental houses and properties within urban areas....
Should government review powers of kings?
Yes
No
Can't Say
follow us
subscribe to our news letter