Gen. Saleh rooting for more savings cooperative societies
Jun 25, 2007
IN its efforts to avail capital credit to the population, the Government plans to strengthen existing Savings, Credit and Cooperative Organisations (SACCOs) and encourage the creation of new ones in all the 970 sub-counties in the country. <br>
By Hellen Mukiibi
IN its efforts to avail capital credit to the population, the Government plans to strengthen existing Savings, Credit and Cooperative Organisations (SACCOs) and encourage the creation of new ones in all the 970 sub-counties in the country.
In his budget speech, the finance minister, Dr. Ezra Suruma, stressed the Government’s commitment to provide micro-finance capital mainly through cooperatives.
Cooperatives like SACCOs, he said, play a big role in the “prosperity –for- all†programme code-named Bonna Bagaggawale.
To provide micro-finance, the Government has developed various strategies for effective delivery of financial services like small-scale credit and savings especially to the rural areas where the low income individuals and groups live or work.
In such areas, formal financial services are unavailable or un-accessible.
Though still in its infancy (begun mid-80s), microfinance industry has picked momentum with increased service providers.
These include commercial banks, non-governmental organisations and savings and credit cooperative organisations.
Household names among cooperative institutions include Uganda Cooperative Savings and Credit Union, Uganda Cooperative Alliance and most recently, SACCOs.
Formulated in 2005 under the Rural Finance Strategy, the Government through SACCOs aims at ensuring that financial services reach the population in every sub-county and, subsequently, in every parish.
Apart from offering small-scale credit, communities are encouraged to mobilise savings and use these savings deposits as a source of investment capital to rural enterprises in form of loans.
“We have to ensure that people have easy access to affordable financial service points.
“There are 970 sub-counties countrywide. The plan is to support the formation of SACCOs in 589 sub-counties (552 rural and 37 in the urban,†said Gen. Caleb Akandwanaho (Salim Saleh), the minister of state for micro-finance
The minister hoped that by next June, at least 39 districts will have new SACCOs set up at sub-county level.
The target is to have SACCOs at all sub-counties by June 2009.
This task, he said would among others be implemented by staff of the Microfinance Outreach Programme Unit, Uganda Cooperative Savings and Credit Union and sub-county chiefs
Gen. Saleh explained that in order support the communities in sub-counties ready to start their SACCOs, the Government will provide monies for mobilisation and sensitisation of both the members and the leaders.
He added that there was also need to train SACCOs leaders, management and staff in financial management, governance and management of SACCOs.
The minister said where new SACCOs are formed; the Government will provide start-up kits which will include office space, stationery equipment and salaries for a technical staff.
“The objective is to support the nationwide financial infrastructure of SACCOs capable of delivering financial services in every sub-county,†he added in a recent interview.
For this component, the Government has established a Capacity Building Fund to strengthen the existing SACCOs.
The objective is to have the sub-county SACCO elevated to a county institution and subsequently a district body to be known as “District Credit Union.â€
IN its efforts to avail capital credit to the population, the Government plans to strengthen existing Savings, Credit and Cooperative Organisations (SACCOs) and encourage the creation of new ones in all the 970 sub-counties in the country.
In his budget speech, the finance minister, Dr. Ezra Suruma, stressed the Government’s commitment to provide micro-finance capital mainly through cooperatives.
Cooperatives like SACCOs, he said, play a big role in the “prosperity –for- all†programme code-named Bonna Bagaggawale.
To provide micro-finance, the Government has developed various strategies for effective delivery of financial services like small-scale credit and savings especially to the rural areas where the low income individuals and groups live or work.
In such areas, formal financial services are unavailable or un-accessible.
Though still in its infancy (begun mid-80s), microfinance industry has picked momentum with increased service providers.
These include commercial banks, non-governmental organisations and savings and credit cooperative organisations.
Household names among cooperative institutions include Uganda Cooperative Savings and Credit Union, Uganda Cooperative Alliance and most recently, SACCOs.
Formulated in 2005 under the Rural Finance Strategy, the Government through SACCOs aims at ensuring that financial services reach the population in every sub-county and, subsequently, in every parish.
Apart from offering small-scale credit, communities are encouraged to mobilise savings and use these savings deposits as a source of investment capital to rural enterprises in form of loans.
“We have to ensure that people have easy access to affordable financial service points.
“There are 970 sub-counties countrywide. The plan is to support the formation of SACCOs in 589 sub-counties (552 rural and 37 in the urban,†said Gen. Caleb Akandwanaho (Salim Saleh), the minister of state for micro-finance
The minister hoped that by next June, at least 39 districts will have new SACCOs set up at sub-county level.
The target is to have SACCOs at all sub-counties by June 2009.
This task, he said would among others be implemented by staff of the Microfinance Outreach Programme Unit, Uganda Cooperative Savings and Credit Union and sub-county chiefs
Gen. Saleh explained that in order support the communities in sub-counties ready to start their SACCOs, the Government will provide monies for mobilisation and sensitisation of both the members and the leaders.
He added that there was also need to train SACCOs leaders, management and staff in financial management, governance and management of SACCOs.
The minister said where new SACCOs are formed; the Government will provide start-up kits which will include office space, stationery equipment and salaries for a technical staff.
“The objective is to support the nationwide financial infrastructure of SACCOs capable of delivering financial services in every sub-county,†he added in a recent interview.
For this component, the Government has established a Capacity Building Fund to strengthen the existing SACCOs.
The objective is to have the sub-county SACCO elevated to a county institution and subsequently a district body to be known as “District Credit Union.â€