Business
Political interference stalling cooperative movements
Publish 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
Textile manufacturers want the national textile policy implemented
Textile industries are pushing for the implementation of a National Textile Policy. They also want government institutions compelled to buy textiles from local companies....
BOU has no influence on govt spending
There have been allegations in the media that Bank of Uganda printed money for the 2011 elections, which led to the high inflation rate at the time....
UAE Exchange honoured at FiRe Awards 2014 in Uganda
UAE Exchange, the leading global money transfer, foreign exchange and payment solutions brand, has been honoured with the Certificate of Recognition for Outstanding achievement in Financial Reporting under Forex Bureau category in FiRe Awards 2014 in Uganda....
Pakistan to facilitate Uganda businessmen to exhibit in Karachi
A section of Ugandan business comminity is set to widen its business scope into Pakistani following new interventions to boost economic ties between the two nations....
Tourism board to use PR firms to market Uganda
The Uganda Tourism Board (UTB), the body charged with marketing the country as a tourism destination of choice, has adopted the use of foreign public relations firms to sell Uganda after traditional marketing registered minimal success....
Ministry wants local drug makers protected
The health ministry has supported the quest by local manufacturers of medicines and other health supplies to be protected from foreign competition to enhance citizens’ access to drugs....
Should workers be subjected to a 4% Health Insurance Tax??
Yes
No
Can't Say
follow us
subscribe to our news letter