Lango Cooperatives Bag Shs 2.7 Billion

Lango cooperatives have cashed over shs 2.72 billion in sunflower production.

Ngetta Tropical Holdings (NTH), the producer of Virgin Gold cooking oil based in Lira is working with farmer cooperatives, to provide guaranteed market for sunflower seeds. The cooperatives are planting Agsun 8251 sunflower seeds which are imported from South Africa and sold to the farmers at a fair price.

With the unpredictable weather conditions in some parts of the country, there are numerous outcries from farmers, with regard to the impact of weather conditions on the quantity and quality of harvest.

However, for over 40 farmer cooperatives in Northern Uganda especially in Lango region which registered viable production of Agsun 8251 during the first season this year, their story is positive.

MARKET

Not like alarms made on maize price, these cooperatives produce with ready market set by NTH at a price of 1,100 shillings per kilo.

Mr. Enyang George, the Manager, Production & Special Projects at Ngetta Tropical Holdings who spoke to this news site revealed that since 1 July 2018 there are 2,473,000 tons of grains in stock, only bought from the members of cooperatives.

Mr. Enyang said these cooperatives were able to cash in over 2.72 billion shillings for the Agsun 8251 grains they produced and sold to NTH.

“Farmers should produce, store and market together” says Mr. Enyang for our community to realize the strength of a cooperative.

Lapul and Puranga farmer cooperatives in Pader are amongst the cooperatives dealing in this production alongside over 40 others in Lango.

In addition to sunflower, the cooperatives are involved in production of other crops.

Virgin Gold Cooking Oil, accredited by UNBS was launched on 16 August 2018.

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Youths take the next step to form a cooperative

Egessa Hajusu

The unfavorable economic conditions in the country, have compelled a section of youths in the shoe making industry in Kampala to turn their businesses into a cooperative.

“The current system of capitalism has done more harm than good,” said adding the system has increased income disparity and depressed the country’s development.

Otafire is a twenty five years old graduate in ethics and human rights from Makerere University, who runs an African sandals making workshop in Kikoni Makerere, which started in 2013.

Taxes are very high, getting in business is impossible which explains why many businesses started by young entrepreneurs have collapsed, Otafire told the Cooperator in a telephone interview.

Given the tough nature of doing business it hasn’t been easy for him and his co- founder Haris Akampulira it has taken their business three years to take off.

Samples of the African sandles they make in Kikoni

Now that the business is self-sustaining, we feel it is high time we opened it up to allow 50% of young people interested in joining to buy shares so that the business can transition into a cooperative model.

He says Kampala cooperative Union as it is to be called will diversify business from industry to real estate, insurance, health and education.

“We can use the cooperative as a vehicle to get through the complex economic system in the country, so as to get space to participate in economic development.

Otafire strongly believes that given the three years’ experience of hardship they have gone through, they can achieve much if they get organised through self-help and solidarity under a cooperative.

He however, concedes that they lack knowledge on how to transition their business into a cooperative.

He says when they sought for advice they were referred to seasoned Cooperator Leonard Okello the executive director Uhuru training institute.

Otafire who is scheduled to meet Leonard Okello the executive director Uhuru Institute for Social Development, today (Monday) acknowledges that he is yarning to benefit from his wealth of experience, in the cooperative movement.

He particularly wants to know how the cooperative will work and benefit the shareholders.

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Start church bank, bishop tells Christians

Egessa Hajusu

Church of Uganda Christians in Bukedi diocese have been encouraged to join fellow brethren county wide to start saving money to enable the church start its own Bank.

Bishop Samuel Egesa of Bukedi diocese said the Christians should start saving through the kingdom development organisation (KIDO) put in place by Church of Uganda (COU).

Egesa said savings from ten million followers of church of Uganda will make the church strong enough to run and fund its development programmes.

Savings will help the church finance its ongoing projects like health facilities, schools among others to generate more money which will result into forming of the church of Uganda’s Bank.

Church of Uganda last year launched the KIDO mobile money saving system, through which Christians are encouraged to save at least shillings 500 daily.

This will empower the church to execute its development activities without appealing to Christians all the time to contribute money which they might not have.

He asked the laity to work hard by engaging in viable economic activities to contribute to the development of the country.

The bishop consequently asked the priest not to always keep the followers in church noting this will reduce their time of working to improve their house hold incomes.

He thanked Christian for contributing generously towards the construction of the church house.

Bukedi diocese is comprised of seven district including Busia, Budaka, Butaleja, Butebo, Kibuku, Palisades and Tororo.

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Busia cooperators ask for protection

Egessa Hajusu

Traders under Busia produce dealers’ multi-purpose cooperative society have asked the government to protect them from Kenyan counterparts.

The traders want government to stop Kenyan traders from skipping their cooperatives and enter into the interior where they buy produce directly from farmers.

“What kind of government is this, that cannot protect its traders from foreigners,” wondered trader Asuman Munubi who requested cabinet to intervene and address their concern.

They expressed disappointment that the practice has suffocated their cooperatives, kicked them out of business, leaving them with thousands of tons of produce in the stores.

Busia produce market attracts buyers from Kenya, Rwanda, South Sudan and the Democratic Republic of Congo. The traders said this during a chat with the Cooperator.

The Kenyans no longer buy from Busia produce market, when they cross the border they go as far as Soroti, Lira, Gulu, Masaka, Mubende and Mbarara among others where they spend days to buy, collect and store produce then go back to Kenya.

What angers the traders is that the Kenyan do all this without Ugandan leaders pointing a finger which is contrary to what happens when Ugandan traders go to Kenya.

The traders who deal in all types of corn and grain feared that traders from other countries will soon start emulating the Kenyans by going in the countryside and stop buying from them.

“We are now depending only on local buyer’s that mainly take small quantities for home consumption,” Peter Wandera another trader lamented.

Commenting on the issue, Oundo Ongwabe the chairperson cross border traders association (CBTA) said the Kenyan traders were violating the essence of Regional and East African Community economic integration.

Foreigners can enter into another country and buy goods from zonal markets like Busia main market but not directly from producers.

The common market should not be abused Ongwabe said, and advised the traders to get organized work collectively for their own good and stop betraying each other.

Kenyans he said have, been ushered into Uganda’s interior by the very traders who are now complaining.

The Busia Municipality Member of Parliament Geoffrey Macho said he was equally distributed. He assured the traders that government is going to find a solution to the problem.

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Cooperatives the way to go- Busia boss

Egessa Hajusu

Sustainable development in the country will not be achieved lest cooperatives are embraced by Ugandans, the acting Busia district chairperson Paul Oguttu has said.

“You were all here during the presidential elections and you heard all candidates talking about cooperatives,” he said and encouraged the area residents to look at cooperatives as the way through the country will be developed.

Oguttu who is also the Majanji sub county councilor to the district was on Friday addressing farmers at Masaba sub county headquarters in Busia.

If all leaders at all levels are now looking at using cooperatives as a way of driving the country to the next stage in development, then what are those of you that haven’t formed cooperatives waiting for.

Take advantage of the cooperative fund which the government is increasing every financial year to form savings and credit cooperatives (SACCO’S) make your savings but also apply for loans from the micro finance support center to start business and fight poverty.

“Nobody will come from outside Uganda to develop this country,” Oguttu said, and tasked citizens who understand that it is their responsibility to develop the country to start now by forming cooperatives.

He advised the existing SACCO’S in the district to use the Trinity or (three in one) formula of owning, using and governing as the mode of managing their SACCO’s

The cooperators should emulate this formula to run their businesses because God who uses it, has never failed in his work. The Father, The Son and The Holly Spirit.

SACCO’S that operate well will be recommended by the district to the ministry of agriculture animal industry and fisheries (MAAIF) to apply for agriculture loan to enable the farmers expand business by opening up more land and acquiring inputs.

The farmers thanked Oguttu for opening their eyes and promised to start a cooperative but asked him to send for them a technical person to help them with paper work. Those that lived during the days of the cooperatives said they new the advantages and promised to mobilise the young ones into joining the cooperative.

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Court orders Nandala out of Bugisu cooperative union board

High Court in Mbale has issued an injunction stopping Bugisu Cooperative Union (BCU) Board led by Nandala Mafabi from handling the affairs of the farmers’ group, arguing that their term of office expired.

BCU is comprised of 274 farmer groups but five of them, which Muruba, Bumatofu, Bumusabire, Bumbobi and Bukhaweka, had dragged the Board led by Mr Nandala to court, claiming that he could not continue transacting business on behalf of the Union when their term expired in March.

And on Wednesday, Justice Tadeo Asiimwe ruled that the Board should stop handling the Union affairs until a fresh election is held.

“The old board of the respondent shall cease to handle the affairs of the respondent for 30 days or until otherwise directed by the court or registrar of cooperatives,” Justice Asiimwe said.

“The general manager of the respondent is authorized to run the affairs of the respondents for the period of 30 days. The registrar of cooperatives should give directives and guidance as to what happens in the transition between now and November when the AGM is scheduled to take place,” he added.

Mr Nandala has served as BCU Chairperson for two consecutive terms. In the latest term, he was elected in 2016 and his term of office expired in March.

BCU is Uganda’s only surviving cooperative society. It’s an establishment that has existed since the colonial times. However, it has of late faced leadership challenges, including allegations of abuse of office, lack of transparency, mismanagement of Unions funds.

However, the Nandala leadership denies the allegations and instead accuses government of political interference in a bid to fail the association.

Commenting on the ruling, Mr Nandala said they had delayed to hold the annual AGM in order to give other primary societies time to meet the requirements to participate in the voting exercise.

“The court has helped because now we can hold AGM even if it’s only 10 primary societies that qualify but we had wanted all primary societies to vote,” he said.

Mr Nandala Mafabi further explained that they have a letter from the registrar of cooperatives allowing the current board to continue with its work until a new board is elected in November.

SOURCE: Chimp Reports

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We don’t take bribes to register cooperatives

By Egessa Hajusu

The registrar of cooperatives Joseph Kitandwe has refuted claims that his office demands for bribes in order to register cooperatives.

“This is a very serious allegation I am hearing it for the first time,” Kitandwe said, and challenged the Cooperator to name its source which is contrary to journalistic principles of protecting sources.

Responding to a question from the Cooperator that his office demands for bribes from cooperatives before registering them.

A number of cooperatives seeking to be registered in Bukedi sub region told the Cooperator that the registration process at the registrar of cooperatives takes longer than the required two weeks period.

The cooperators that requested for anonymity for the feat of being victimised also claimed that they are compelled to pay bribes before getting registration.

Some claimed that their documents have stayed at the registrar’s office for more than three months because of being not able to meet the demands of the registrar’s office.

However, speaking to the Cooperator in a telephone interview Kitandwe dismissed the allegation as baseless and challenged those claiming to have bribed his staffs to name them, vowing to take action against the implicated officers.

He believed some people could be acting as middle men and pausing as commercial officers in his office so as to extort money from the unsuspecting members of the public (cooperators).

Concerning registration, he said, according to their rules, the standard period for registration should be two weeks.

Each case is unique in its way, some may delay because of the clients taking long to respond to the queries raised by the registrar’s office.

All the clients are issued with acknowledgement chits as we receive them to ensure they don’t claim to have submitted in their documents earlier to prevent concerns like this.

“But we are also not compelled to register them anyway,” he said adding that if everything is in order, registration doesn’t take long.

He said he could not give a general comment because each case is different and appealed to those willing to register their cooperatives to feel free take them and directly report to him those asking for bribes.

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Eastern Region elders embrace Sacco’s

By Egessa Hajusu

The elderly people in Eastern Uganda have embraced savings and credit cooperatives (SACCO’S) so as to participate in the area’s social economic development.

Speaking to the Cooperator in telephone interview, John Peter Eremu Anyau the area deputy national chairperson elders league who coordinates the exercise said, the elderly have been left out and ignored because they are looked at as stale people, only waiting to die.

“We have wide experience in handling money and so we want to get involved in offering financial services, he said and noting the elderly that are still active, should be able to fend for themselves and stop relying on their overburdened children.

Some districts in the region have already been cleared by registrar’s office while others are in registration and formation processes, in the exercise which was launched last year.

The plan, Anyau said, is to enable all districts in the region have a big Sacco at a district level to address the problem of small mushrooming Sacco’s at the sub county levels.

“This will serve the purpose of efficiency, effectiveness and strength,” Anyau said adding that inadequate capital has been the main reason for the collapse of many Sacco’s. Eastern regional is comprised of of Bukedi, Busoga, Bugisu, and Sebei sub regions.

The district Sacco, Anyau said is made up of thirty elderly people from each village registered at respective sub counties as community based organisations, with a selected enterprise to undertake.

The group buys a minimum of two shares at shillings twenty thousand in addition to a membership fee of shillings ten thousand.

The membership of the elders Sacco’s, he said, is also open to the general public but the executive committees are run by people aged sixty years.

On the Sacco’s financing, Anyau said, just like other businesses in order for the Sacco’s to operate effectively and on daily basis, they will access financing from loans, grants and other sources of funding.

“We are trying to avoid a situation of entirely relying on savings from our shareholders, and avoid stagnation by waiting for the borrowed money to be brought back before new transactions begin,” he said.

District Sacco’s should be able to make profits, cater for their expenses and generate surpluses for the purposes of development.

He appealed to districts that have not completed registration to expedite the process saying commissioning of SACCO’s will soon being.

Zachariah Wanyama the chairperson Busia district elders Sacco said, their long term object is to start a Bank, medical scheme and create centers where the elderly can be taken care off.

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How is Your Co-operative Performing in the Digital World?

Digital technologies are changing the lives of customers and patrons. Social Media provides them with a new voice. Mobile devices and online platforms alter what people expect from businesses. And ‘big data’ is giving organizations the opportunity to understand and fully engage with their stakeholders – whether these are members or customers.

In light of this, it is important to ask how your co-operative is using digital tools. It is equally important to explore how your co-op is performing in these four areas: Social media, mobile and digital customers, Big data, and Governance.

Social media impact

Social media is not a one-stop solution. The digital revolution is developing so quickly that it is essential for businesses to stay on top of developments and trends. In a fast-moving world, it is easy to get left behind.

Like other business entities, Social media can help co-ops build their brand. It empowers you to go beyond corporate messages and communicate specific and everyday activities directly to customers, members and the wider public.

Co-operatives, particularly those with a membership that includes employees or suppliers, may want to use social media as a means of getting closer to members. In smaller co-ops, social media tools enable members to talk and collaborate more regularly. In larger co-ops, where direct engagement is often limited, social media offers a new opportunity. In case you want to publish longer and descriptive content, you may want to publish a Blog aside your website.

Digital innovations

Mobile technology has had a big impact in the finance and banking sector. With mobile banking on the rise, there are now more points of contact with customers and members than ever before. For financial co-operatives, mobile has clearly begun to change the relationship with customers and members. You may want to create web and smartphone apps to respond to your customers’ wishes for easy access to their accounts.

While the development of mobile platforms may be most obvious for the financial co-ops, it is impacting agricultural co-operatives too, enabling farmers to connect with one another and their co-op, and run their businesses more efficiently.

Agricultural co-ops should also adopt a system of engaging with members via mobile technology in different ways, from simple operations such as checking weather forecasts and the price of grain, to managing data about livestock, plots and finance on the farm.

Digital governance

If patrons and consumers have become more digitally connected, so have co-operative members.

For many larger co-ops, the use of digital tools is an effective way to give members a sense of proximity to the business. This is of most pressing significance for big co-operatives which cannot provide simple or regular ways for members to meet or physically interact with the co-operative. But it is just as important for smaller co-operatives, giving members more opportunities to engage and interact with the business and with one another.

A crucial ingredient of member democracy in a co-operative is an informed membership that can be in regular communication with the executive and governing bodies. Many co-ops have identified social media as a means of communicating with members. For many, the flow of information is one-way – from co-op to member – but two-way interaction is also possible.

Co-ops should also adopt the use of digital tools to allow members to vote online and facilitate discussion and decision-making among board members.

Digital tools, it seems, are proving an important part of co-operative governance. The importance of digital tools is even more significant for the future.

Whether it’s engaging with customers and members, running daily operations or governing the co-op, digital tools will play a vital – and increasingly important – role in the future of co-operatives.

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OPINION: Uganda needs more of producer and marketing cooperatives and less of SACCOs

By James Abola

In the 1950s when Africans realised they were firmly stuck at the bottom of the economic ladder, they started forming cooperatives. All over the country, there were producer and marketing cooperative societies that reduced the cost of agricultural production for peasant farmers while increasing their income through better bargaining power.

When the societies joined and formed unions, they got stronger bargaining power as well as pride in their work. To address the challenge of availability and affordability of credit, the unions formed a bank that served them well until this was changed by the ruling government.

The death of the Cooperative Bank Limited in 1999 accelerated the death of Cooperative Unions and Cooperative Societies across the country. For some reason, the government started campaigning for the formation of Savings and Credit Cooperative Societies (SACCOs) about 10 years ago.

The government promoted SACCO model requires a group of say teachers or veterans or car washers to form the cooperative society. Once the society is formed, then government can give a grant or low interest loan to it for onward lending to members.

There are few differences between the cooperatives of the 1950s and the 2010s. The 1950s societies were value creating groups of people. They used the society to source for production inputs at a discount and to bargain for good selling prices for their produce. Today’s societies operate like money distributing entities. Most members join SACCOs to borrow money instead of growing wealth.

The 1950s societies were largely the initiative of the members and the societies joined to form unions which handled national and international business for the co-operators. Today’s cooperatives work like stand-alone entities.

The benefits of working as a cooperative are still needed by the poor citizens of Uganda today. What is needed though are more of producer or marketing cooperatives and less of SACCOs. There are many benefits when the cooperative is initiated by members instead of government officials.

James Abola is a business and finance consultant. Email: james.abola@akamaiglobal.co.uk

Source: Daily Monitor

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