Co-operatives launch national SACCO to revive their bank

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Uganda’s cooperative movement has taken a bold step toward re-establishing a Cooperative Bank with the launch of the National Cooperative Savings and Credit Society Limited (NCSCSL) at the inaugural National Cooperative Conference 2025.

The launch, which took place at UMA show ground last Friday, marks the beginning of a long-term journey to restore a member-owned financial institution after the collapse of the original Cooperative Bank, which was dissolved by the Bank of Uganda in the mid-1990s during a wave of bank failures.

Speaking at the launch, Jonas Tweyambe, the Chairperson of the Uganda Cooperative Alliance (UCA), said the NCSCSL is expected to serve as a springboard for creating a full-fledged Cooperative Bank over the coming years.

“Uganda’s cooperative movement has expanded to 46,406 registered societies with 18 million members, employing 16% of the population, driving agriculture and finance, and contributing 2.685% to GDP while supporting housing, energy, transport, health, water, and environment,” he pointed.

The initiative seeks to address persistent challenges faced by cooperatives and farmers across the country, including limited access to affordable finance, weak governance, regulatory barriers, low levels of digitisation, and gaps in cooperative education.

Uganda currently has more than 21,000 registered cooperatives spread across agriculture, housing, transport, fisheries, and other sectors.

“The launch is not just about creating a financial institution—it is about building a legacy of self-reliance, solidarity, and economic empowerment for all Ugandans,”  he added.

NCSCSL will start as a Tier 4 cooperative society under the Registrar of Cooperatives, gradually strengthening governance and building ownership before moving up the regulatory ladder toward a Tier 1 National Cooperative Bank.

Phase One targets capitalisation of sh10b, with a long-term goal of sh200b. Membership is open to all registered primary and tertiary cooperatives, with each share priced at sh100,000 and a minimum requirement of 10 shares.

So far, pledges worth sh86.5m have been made, including sh10m from the UCA. Governance will be handled by a nine-member board and a 14-member interim steering committee drawn from leading cooperatives and key government ministries.

The National Cooperative Conference, themed “Driving Inclusive and Sustainable Livelihoods through Cooperatives for a Better World,” provided a platform for dialogue on policy reforms, cooperative achievements, and inclusion of women, youth, and marginalised groups.

Representing President Yoweri Kaguta Museveni at the conference, Trade and Cooperatives Minister Francis Mwebesa emphasised that peace, stability, and infrastructure development have laid the foundation for economic growth.

“This is fundamental because without peace, individuals, families and companies cannot produce goods and services. The NRM government has transformed Uganda from lawlessness into a land of peace and stability while investing heavily in infrastructure and pursuing private sector growth,” he said.

Mwebesa noted that the government’s priority is to shift the remaining 33 percent of households from subsistence farming into the money economy. He highlighted four sectors as key drivers of wealth creation: commercial agriculture, services, ICT, and industry.

“As more Ugandans embrace the wealth creation campaign, production and industrial output will continue to grow. Our internal market of 46 million people is not enough, but Africa collectively offers a market of 1.4 billion, which Uganda must continue to tap into,” he said.

He urged cooperative leaders to harness peace and infrastructure to generate fast, inclusive growth that creates jobs and strengthens competitiveness. He also reaffirmed government’s commitment to supporting cooperatives through favourable legislation and an enabling environment.

“Growth alone is not enough; it must come fast and benefit everyone. The government is committed to supporting cooperatives in every way. Finally, I wish you peace and liberation,” Mwebesa concluded.