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Trade minister sets target for revival of cooperative banks

By David Lumu

Added 28th June 2019 09:14 AM

In May, Parliament passed the Cooperative Amendment Bill, 2016. However, President Yoweri Museveni is yet to assent to the Bill.

Trade minister sets target for revival of cooperative banks

Minister of Trade, Industry and Cooperatives, Amelia Kyambadde addressing the media recently. (Photo credit: Uganda Media Centre)

In May, Parliament passed the Cooperative Amendment Bill, 2016. However, President Yoweri Museveni is yet to assent to the Bill.

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The Minister of Trade, Industry and Cooperatives, Amelia Kyambadde, has set a two-year target for technocrats to revive the defunct Uganda Cooperative Bank.
 
"As soon as the President assents to the Cooperative Amendment Bill, 2016, the revival of the cooperative bank will be done within two years. That is the target," she told journalists on Tuesday at the Uganda Media Centre.
 
In May, Parliament passed the Cooperative Amendment Bill, 2016. However, President Yoweri Museveni is yet to assent to the Bill.
 
The Cooperative Amendment Bill provides for the revitalization of the Uganda Cooperative Bank, which Government closed in 1999 over inadequate capitalisation and insolvency.
 
The expected shareholders in the proposed revitalized bank include, Kyankwanzi Sacco Limited, West Mengo Cooperative Union Limited, Bunyoro Growers' Cooperative Union, East Mengo Cooperative Union Limited, West Acholi Cooperative Union Limited and Masaka Cooperative Union Limited.
 
Kyambadde also briefed the media on the forthcoming international cooperative day celebrations at Wakiso district headquarters, which is scheduled for July 6.
 
Organised under the theme, ‘Cooperatives for decent work,' Kyambadde said Museveni will preside over the cooperative day celebrations.
 
Kyambadded said the revival of the cooperative bank will enable many cooperatives that face challenges of access to credit access capital.
 
There are 19, 718 cooperative societies in the country.
 
According to Leonard Okello, the executive director of UHURU Institute, there is need for Government to recognise that there were major flaws in the closure and liquidation process of the cooperative bank, and provide the needed funds to revitalise the bank.
 
"The President should urgently assent to the Cooperative Amendment Bill, 2016, which was passed by Parliament," he said.

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