Nantume's sacrifice has seen Lwengo get the biggest SACCO

Mar 27, 2013

With her phone off, I was not sure where I would find Jane Nantume in Mbirizi town. Before I could move any further, a big signpost Lwengo Micro Finance Limited beckoned me. I thought it was owned by one of the big banks in the newly-created Lwengo district.

By Andrew Masinde

With her phone off, I was not sure where I would find Jane Nantume in Mbirizi town. Before I could move any further, a big signpost Lwengo Micro Finance Limited beckoned me. I thought it was owned by one of the big banks in the newly-created Lwengo district.

As I made my way through the entrance, Stephen Waliggo, the manager, asked me whether I wanted to see Mama Bank, the name given to Nantume, the founder of Lwengo Savings and Credit Cooperative Society (SACCO).

Born in 1952 in Matete subcounty, Sembabule district, Nantume moved to Mbirizi in 1979. She says there used to be a small bank in the area, but it closed due to lack of business.

“Due to the absence of a bank, the residents, who mostly grow bananas could not save their money,” recalls Nantume.

“It was not until 2000 when I gathered people in the area to form a group where we would collect money and at the end of the month give it to one person. It was hard to convince them, but finally they bought the idea,” Nantume says.

“As a treasurer, Nantume recorded deposits that were locked in a box and the keys kept with the area LC chairman, Stephen Mukasa.

Whenever the members sold their bananas, each saved sh3,000. “Every time the amount totalled to sh20,000, I deposited the money in Masaka, where I had opened a group account in the bank. We did this for long and finally started projects that would bring in more money,” says Nantume.

The members started roadside businesses, and later graduated to stalls and finally opened shops. They began saving more money and I was worried about the safety of people’s money, recalls Nantume.

“I suggested that we get a place in Mbirizi, where we should start up a SACCO. The members were worried of where we would put the SACCO, so I offered my small room to be used.

“The members elected the executive to be in charge of their money and I was voted chairperson. I approached the authorities from Micro Finance Support Centre (MFSC) and they advised us to get officials from the MFSC to help us organise the group.

With their technical support, we established the SACCO, which has now grown big,” says Nantume. Officials from the MFSC advised them to employ professionals to run the SACCO so as to avoid mishandling the money.

However, the group did not have the financial capacity to hire professionals until 2010 when President Yoweri Museveni paid them a surprise visit.

“He appreciated our work and donated sh10m,” says Nantume. “We used this money, to furnish the room and hired a few professionals to transform it into a modern SACCO with savings and loans, now running into hundreds of millions.”

Although the SACCO was registered with 312 members at the beginning, today, over 2,300 members have opened accounts with them.

Their operations

The SACCO is used by schools for paying school fees, church savings and public servants. It also offers school fees loans, agricultural loans, business loans, emergency loans and solar loans. Members who want to borrow money are trained on how they can use the money well.

They are asked about the projects they want and where they want to invest. This is done to help members know what they will need before starting their projects.

Lwengo SACCO also sends its team to follow up on the people who got loans to see if the money is used for its rightful purpose.

“This has helped members because they come thanking the SACCO executive for following them up in their new projects,” Waliggo says.

What people say

“I would not have reached where I am if it were not for the school fees loan my parents borrowed from the SACCO. I am also working in the SACCO as a loan officer, I plan to go for further studies using the school fees loans from the SACCO,” says Denis Mwesigwa, a student and beneficiary.

With farming loans, people have big commercial farms in the area. Francis Lwanga, a farmer in the area, who got money from the SACCO says: “I got a loan to set up a mango plantation.

Many people thought I was wasting time, but today Lwengo residents see me as a rich mango farmer”. Through the mango plantation, President Yoweri Museveni came to witness what he had heard from many people about my success in the business. He donated a pick-up truck to me.

I treasure Nantume because she convinced me to join the SACCO, yet at first, I gave her hard time, but she insisted and today I have no regrets,” Lwanga says.

He added that he has educated his children in higher institutions of learning that many villagers cannot afford, but thanks to the SACCO and soon, I plan to open new projects.

Due to high electricity bills the SACCO introduced solar loans that have helped many. “I do not admire people who use electricity and pay bills at the end of the month. I have solar power, which does not require monthly bill payments.

Lwengo SACCO is a blessing in the area, I pay school fees for my children and have a business and a farm that I would not have afforded if the SACCO had not opened in the area. I also have a poultry farm that has 800 chicken and I plan to open up a big cattle farm,” Mastula Nakibuye, a beneficiary, says.

Majoro Kabayo, the resident district commissioner of Lwengo district, who is also a member of the SACCO, says, when she was posted to Lwengo, the first bank she saw was Lwengo Micro Finance.

“I had no where else to save my money so I joined the SACCO and today I have no regrets. I wish the Government could come up with more programmes to make SACCOs village banks because they do a lot for the community, especially low income earners, who cannot afford to get services from big commercial banks,” Kabayo says.ACT FILE

Nominee: Jane Nantume

Innovation: Lwengo SACCO

Quote: “Due to the absence of a bank, the residents who mostly grow bananas, could not save their money.”

Contact: +256-782006310

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