Electricity shortage crippling Zombo Coffee Cooperative

Over 70 women Cooperators in Zombo District are out of work after their Cooperative’s coffee processing plant ceased operations due to lack of electricity.

The women – members of Okoro Coffee Cooperative, used to work at the cooperative’s coffee processing plant, but have since been laid off after the plant ceased operations in 2006.

Gilbert Wachal, the manager of Okoro Coffee cooperative told the Cooperator that their processing plant used to process 15million kilograms of coffee per season, but was forced to wind down operations due to exorbitant energy costs. “We were depending on a generator, using 600 liters of fuel in 10 to 12 hours. The cost was neither making business sense, nor sustainable, so we had to stop,” he said.

Although the electricity network passes just 100 meters from the cooperative factory, Wachal says that their appeals to the government to be connected have fallen on deaf ears. He said that when they contacted the Rural Electrification Agency (REA), they were told they needed a three-phase transformer to generate sufficient power to serve the factory, which they couldn’t afford.

Attempts to get help from the State Minister of Energy, Simon D’Ujanga who is also the Okoro County MP were not successful either. Instead, D’Ujanga asked the cooperators to be patient, saying that plans are already underway to connect Zombo district to the national grid, after the completion of the Karuma Hydro-power dam.

When contacted, a source from REA who preferred to speak on condition of anonymity because they’re not authorized to speak on behalf of the agency confirmed that the agency has already dispatched teams on the ground in Zombo to begin the work of connecting the district to the national grid.

Zombo district is one of the four districts yet to be connected to the national electricity grid. The others are Kotido, Kaabong and Buvuma Islands.

For now, Okoro Coffee Cooperative continues selling its coffee in raw form, forgoing significant revenue that the cooperative previously generated from selling processed coffee. “We have been deprived of other by-products of coffee like the husks which we would sell as manure to farmers,” says Wachal.

As a result, Wachal says, the cooperative has struggled financially, and today lacks sufficient capital to buy coffee from its member farmers, who have resorted to selling directly to middlemen.

As for the processing factory’s machinery, Wachal says it is intact, even though he fears it could have acquired minor faults due to years of inactivity. “When we eventually get connected to electricity, we will be able to detect if there are any faults or not,” he says.

For now, the Cooperative is being anchored on by We Effect– a global NGO focused on strengthening the capacity of small-holder farmers to form cooperatives through which they can better articulate their interests.

Okoro Coffee Cooperative was established in 1962 and presently boasts of 12,000 members. Among its other properties is a 50 ton-store located 6 kilometers away from Paidha town council, which also remains largely unused due to lack of capital.

The post Electricity shortage crippling Zombo Coffee Cooperative appeared first on The Cooperator News.

Electricity shortage crippling Zombo Coffee Cooperative

Over 70 women Cooperators in Zombo District are out of work after their Cooperative’s coffee processing plant ceased operations due to lack of electricity.

The women – members of Okoro Coffee Cooperative, used to work at the cooperative’s coffee processing plant, but have since been laid off after the plant ceased operations in 2006.

Gilbert Wachal, the manager of Okoro Coffee cooperative told the Cooperator that their processing plant used to process 15million kilograms of coffee per season, but was forced to wind down operations due to exorbitant energy costs. “We were depending on a generator, using 600 liters of fuel in 10 to 12 hours. The cost was neither making business sense, nor sustainable, so we had to stop,” he said.

Although the electricity network passes just 100 meters from the cooperative factory, Wachal says that their appeals to the government to be connected have fallen on deaf ears. He said that when they contacted the Rural Electrification Agency (REA), they were told they needed a three-phase transformer to generate sufficient power to serve the factory, which they couldn’t afford.

Attempts to get help from the State Minister of Energy, Simon D’Ujanga who is also the Okoro County MP were not successful either. Instead, D’Ujanga asked the cooperators to be patient, saying that plans are already underway to connect Zombo district to the national grid, after the completion of the Karuma Hydro-power dam.

When contacted, a source from REA who preferred to speak on condition of anonymity because they’re not authorized to speak on behalf of the agency confirmed that the agency has already dispatched teams on the ground in Zombo to begin the work of connecting the district to the national grid.

Zombo district is one of the four districts yet to be connected to the national electricity grid. The others are Kotido, Kaabong and Buvuma Islands.

For now, Okoro Coffee Cooperative continues selling its coffee in raw form, forgoing significant revenue that the cooperative previously generated from selling processed coffee. “We have been deprived of other by-products of coffee like the husks which we would sell as manure to farmers,” says Wachal.

As a result, Wachal says, the cooperative has struggled financially, and today lacks sufficient capital to buy coffee from its member farmers, who have resorted to selling directly to middlemen.

As for the processing factory’s machinery, Wachal says it is intact, even though he fears it could have acquired minor faults due to years of inactivity. “When we eventually get connected to electricity, we will be able to detect if there are any faults or not,” he says.

For now, the Cooperative is being anchored on by We Effect– a global NGO focused on strengthening the capacity of small-holder farmers to form cooperatives through which they can better articulate their interests.

Okoro Coffee Cooperative was established in 1962 and presently boasts of 12,000 members. Among its other properties is a 50 ton-store located 6 kilometers away from Paidha town council, which also remains largely unused due to lack of capital.

The post Electricity shortage crippling Zombo Coffee Cooperative appeared first on The Cooperator News.

Makindye Boda Boda Cooperative Shakes off Leadership Woes to Uplift Members

Kampala, Uganda: A boda boda (commercial motorcycle) cooperative in Makindye, a city suburb, has shaken itself off leadership woes to put a smile on faces of members.

Members of the Kampala Civil Centre Boda Boda Transporters Cooperative Society (KCCBT) say they faced tremendous challenges and were choked to near giving up when a new opportunity came in the mold of a non-governmental organisation, The Uhuru Institute for Social Development.

“Our cooperative reached a point where it seemed to belong to a few chosen members, privileged to receive services from the cooperative,” William Mubiru, a former board chairperson for the cooperative, said.

He said the cooperative society was marred by acute lack of transparency and accountability, leaving the noble cause they had started to uplift their livelihood suffocating.

As things went from bad to worse, they were hit by internal wrangles as the leaders jostled for any crumb they could lay their hands on while blaming one another for the mess.

Mubiru himself faced the wrath of the wrangles as he was impeached for incompetence in 2016.
When members finally pushed for accountability and the leaders could not account for the savings, the cooperative activities came to a standstill but was saved by the approach of The Uhuru Institute for Social Development whose two-day workshop proved a timely retrospective for the cooperative members to reflect upon their past mistakes.

Amissi Basoga, a pioneer member of the cooperative, said they have grown amid both challenges and success. He reveals that he was able to acquire his own motorcycle after more than 12 years of hiring.

He says this was possible through the Freedom Fund from Uhuru Institute that has enabled KCCBT members acquire more than 50 motorcycles.

To him, what has kept them together as a cooperative is the solidarity and trust among members which has been reinforced through training and emphasis on savings culture.

Leonard Okello, executive director of Uhuru Institute, taught the cooperators on how to carry on their administrative work. He challenged them to learn from their forefathers who succeeded in building large cooperatives under great strain in the 60s and 70s.

Okello said the future of Uganda depends on cooperatives and the strength of each cooperative lies on its membership.

“Cooperatives and their Board of Directors (BOD) look exactly as its members. So if you let the BOD down, even you as members lose out,” Okello said.

Ssekuluma Amiri Ssebowa, the treasurer of KCCBT, admitted that when they started the cooperative society in 2015 with just five motorcycles, they had no idea how to run it. This came with a leadership challenge.

He says by November 2016 – a few months after the Uhuru Institute workshop, they had saved Shs1.8 million, contributions from the 42 members they had at the time.

Today, they are in thousands targeting over Shs18 million by the end of December 2019.

“You can forget the past but you cannot forget what the past taught you,” reflects Mubiru, who recognizes that they have come from far.

He said this teaches the new leadership to be more transparent, accountable and democratic; saying he has faith in the current leadership of Lasto Ssemakula.

The post Makindye Boda Boda Cooperative Shakes off Leadership Woes to Uplift Members appeared first on The Cooperator News.

Makindye Boda Boda Cooperative Shakes off Leadership Woes to Uplift Members

Kamapala, Uganda: A boda boda (commercial motorcycle) cooperative in Makindye, a city suburb, has shaken itself of leadership woes to put a smile on faces of members.

Members of the Kampala Civil Centre Boda Boda Transporters Cooperative Society (KCCBT) say they faced tremendous challenges and were choked to near giving up when a new opportunity came in the mold of a non-governmental organisation, Uhuru Institute for social development.

“Our cooperative reached a point where it seemed to belong to a few chosen members, privileged to receive services from the cooperative,” William Mubiru, a former board chairperson for the cooperative, said.

He said the cooperative society was marred by acute lack of transparency and accountability, leaving the noble cause they had started to uplift their livelihood suffocating.

As things went from bad to worse, they were hit by internal wrangles as the leaders jostled for any crumb they could lay their hands on while blaming one another for the mess.

Mubiru himself faced the wrath of the wrangles as he was impeached for incompetence in 2016.
When members finally pushed for accountability and the leaders could not account for the savings, the cooperative activities came to a standstill but was saved by the approach of Uhuru Institute for social development whose two-day workshop proved a timely retrospective for the cooperative members to reflect upon their past mistakes.

Amissi Basoga, a pioneer member of the cooperative, said they have grown amid both challenges and success. He reveals that he was able to acquire his own motorcycle after more than 12 years of hiring.

He says this was possible through the Freedom Fund from Uhuru Institute that has enabled KCCBT members acquire more than 50 motorcycles.

To him, what has kept them together as a cooperative is the solidarity and trust among members which has been reinforced through training and emphasis on savings culture.

Leonard Okello, executive director of Uhuru Institute, taught the cooperators on how to carry on their administrative work. He challenged them to learn from their forefathers who succeeded in building large cooperatives under great strain in the 60s and 70s.

Okello said the future of Uganda depend on cooperatives and the strength of each cooperative lies on its membership.

“Cooperatives and their Board of Directors (BOD) look exactly as its members. So if you let the BOD down, even you as members lose out,” Okello said.

Ssekuluma Amiri Ssebowa, the treasurer of KCCBT, admitted that when they started the cooperative society in 2015 with just five motorcycles, they had no idea how to run it. This came with a leadership challenge.

He says by November 2016 – a few months after the Uhuru Institute workshop, they had saved Shs1.8 million, contributions from the 42 members they had at the time.

Today, they are in thousands targeting over Shs18 million by the end of December 2019.

“You can forget the past but you cannot forget what the past taught you,” reflects Mubiru, who recognizes that they have come from far.

He said this teaches the new leadership to be more transparent, accountable and democratic; saying he has faith in the current leadership of Lasto Ssemakula.

The post Makindye Boda Boda Cooperative Shakes off Leadership Woes to Uplift Members appeared first on The Cooperator News.

Masaka Elders’ Cooperative on the Brink After Shs170m Goes Missing

Masaka Elders Cooperative Saving and Credit Society has been warned it could wind up if the management and financial woes that has dogged it since 2015 is not resolved.

At stake is members’ savings worth Shs170 million that cannot be accounted for, according to audit reports, leaving a section of members demanding for the heads of the current leadership accused of mismanagement and lack of transparency in running the affairs of the cooperative.

The fight between members of Masaka Elders Cooperative Saving and Credit Society and their leaders climaxed last week with the involvement of police.

A meeting called by angry members to decide the fate of the cooperative leadership was thwarted by Board chair Margret Ntambaazi Nabaggala, who wrote to the registrar of cooperatives to gain a directive for the Masaka District Police Commander to block the meeting.

Trouble for the cooperative begun in 2015 when two separate audits found that the cooperative accounts were being mismanaged and millions of shillings could not be accounted for.

Audits carried out by Masaka District Local Government and Bwanika Certified Accountants found that members’ savings, worth Shs170 million, could not be accounted for.

The then manager, Eric Kizza, was sacked following the audits. He was, however, not prosecuted for the loss of funds.

Andrew Mawanda replaced Kizza but efforts to recover the lost monies remained futile. Mawanda is currently on suspension by the board over allegations of financial mismanagement.

Swaibu Makumbi, a delegate from Masaka Municipality to SACCO’s AGM, said the have failed to recover from the shock and are afraid that their savings could “disappear due to gross financial mismanagement and dishonesty that have been inherent of their managers.”

“The society has for quite some time been trapped in internal misunderstandings and intrigue, to the extent of failing to convene meetings to assess its performance. This has seen leaders spend money without approved budgets,” he said.

According to the delegates interviewed by theCooperator, the SACCO has not had a meeting to discuss and settle the ongoing conflicts by the board members.

Rosemary Nantumbwe, a delegate from Kimaamya Kyabukaza sub county, said the society is facing financial challenges, with members currently struggling to access credit.

She says that as delegates, they are considering disbanding the current board to save the society from collapsing as well as save the little money that could still be available.

Board chairperson Nabaggala admitted she was aware of reports of mismanagement. She, however, added that there is an ongoing audit whose report will guide their next course of action as the Board.

“We will take action on any person held liable of any mistakes, and it was actually those investigations that forced the manager to step aside so as not to jeopardize the inquiry,” she said.

Masaka Elders’ Cooperative Society was established in 2006 to primarily attend to the emerging financial needs of the elderly persons in the eight districts of greater Masaka sub region, but it also later brought on board other people.

Each sub county sends two delegates to form the AGM.

Deo Mulindwa, one of the founders, said their monthly savings ranges between Shs2,000 and Shs5,000, with their shares going for Shs10,000 each.

Records indicate that the cooperative currently has a membership of 3,047 people.

The society has been providing credit to farmers who deal in coffee, piggery and poultry at interest rate of 17 percent. It also offers credit to business community at 20 percent interest rate.

The post Masaka Elders’ Cooperative on the Brink After Shs170m Goes Missing appeared first on The Cooperator News.

Masaka Elders’ Cooperative on the Brink After Shs170m Goes Missing

Masaka Elders Cooperative Saving and Credit Society has been warned it could wind up if the management and financial woes that has dogged it since 2015 is not resolved.

At stake is members’ savings worth Shs170 million that cannot be accounted for, according to audit reports, leaving a section of members demanding for the heads of the current leadership accused of mismanagement and lack of transparency in running the affairs of the cooperative.

The fight between members of Masaka Elders Cooperative Saving and Credit Society and their leaders climaxed last week with the involvement of police.

A meeting called by angry members to decide the fate of the cooperative leadership was thwarted by Board chair Margret Ntambaazi Nabaggala, who wrote to the registrar of cooperatives to gain a directive for the Masaka District Police Commander to block the meeting.

Trouble for the cooperative begun in 2015 when two separate audits found that the cooperative accounts were being mismanaged and millions of shillings could not be accounted for.

Audits carried out by Masaka District Local Government and Bwanika Certified Accountants found that members’ savings, worth Shs170 million, could not be accounted for.

The then manager, Eric Kizza, was sacked following the audits. He was, however, not prosecuted for the loss of funds.

Andrew Mawanda replaced Kizza but efforts to recover the lost monies remained futile. Mawanda is currently on suspension by the board over allegations of financial mismanagement.

Swaibu Makumbi, a delegate from Masaka Municipality to SACCO’s AGM, said the have failed to recover from the shock and are afraid that their savings could “disappear due to gross financial mismanagement and dishonesty that have been inherent of their managers.”

“The society has for quite some time been trapped in internal misunderstandings and intrigue, to the extent of failing to convene meetings to assess its performance. This has seen leaders spend money without approved budgets,” he said.

According to the delegates interviewed by theCooperator, the SACCO has not had a meeting to discuss and settle the ongoing conflicts by the board members.

Rosemary Nantumbwe, a delegate from Kimaamya Kyabukaza sub county, said the society is facing financial challenges, with members currently struggling to access credit.

She says that as delegates, they are considering disbanding the current board to save the society from collapsing as well as save the little money that could still be available.

Board chairperson Nabaggala admitted she was aware of reports of mismanagement. She, however, added that there is an ongoing audit whose report will guide their next course of action as the Board.

“We will take action on any person held liable of any mistakes, and it was actually those investigations that forced the manager to step aside so as not to jeopardize the inquiry,” she said.

Masaka Elders’ Cooperative Society was established in 2006 to primarily attend to the emerging financial needs of the elderly persons in the eight districts of greater Masaka sub region, but it also later brought on board other people.

Each sub county sends two delegates to form the AGM.

Deo Mulindwa, one of the founders, said their monthly savings ranges between Shs2,000 and Shs5,000, with their shares going for Shs10,000 each.

Records indicate that the cooperative currently has a membership of 3,047 people.

The society has been providing credit to farmers who deal in coffee, piggery and poultry at interest rate of 17 percent. It also offers credit to business community at 20 percent interest rate.

The post Masaka Elders’ Cooperative on the Brink After Shs170m Goes Missing appeared first on The Cooperator News.

Prioritize Agricultural Research – NARO

Kampala, Uganda: Researchers and agricultural scientists have called for increased investment in agricultural research, noting that it holds the key to unlocking Uganda’s agricultural potential.

Speaking at a policy dialogue jointly organized by the National Agricultural Research Organization (NARO) and The Uganda We Want Policy think tank at NARO’s crop and livestock research center in Namulonge on Friday, Dr. Yona Baguma, NARO’s Deputy Director-General for Research argued that research offers Uganda the surest way to transition its Agriculture sector from subsistence to modern commercial farming. “We should be able to influence policy from an evidence-based position,” he said.

Baguma also called for a coordinated multi-sectoral approach to agricultural transformation, noting that structural investment along the entire agricultural value chain is critical to linking production to markets.

Echoing Dr. Baguma, Economist Fred Muhumuza argued that the transformation of the agriculture sector must be deliberate. “Subsistence farming economically speaking, is a viable way of surviving in harsh conditions. Most people are locked in there (subsistence farming) as a self-preservation strategy. To begin the transformation, you must give these guys assurance. You must play a deliberate strategy to invest in these people so they can get out of subsistence farming.”

At least 80% of Uganda’s labor force remains employed in agriculture, with 69% still trapped in subsistence farming, according to the latest figures from the Uganda National Bureau Of Standards. Some of the issues that continue to affect productivity include poor seed varieties, unpredictable weather patterns, pests and diseases, and lack of valuable research information.

Muhumuza says that NARO has been influential in changing the sector’s fortunes and that it’s capable of doing more if supported. “We did a survey and found out that research from NARO has contributed between 25-40% of total economic development of Uganda,” he said. He, however, noted that there’s still a big challenge in communication between NARO and farmers, with few farmers able to access new improved and drought-resistant varieties and other extension services.

Vision Group CEO and proprietor of Rugyeyo farm Robert Kabushenga advised fellow farmers and cooperatives dealing in agriculture to consult and spend time with Scientists before doing any investments, arguing that it would save them a lot of regrets. “I made my mistakes. But if anyone wants to go into farming, please talk to the Scientists. They will save you from mistakes. I may be able to take the pain of loss, but other people may not,” he counseled.

Dr. Baguma assured participants that NARO is committed to carrying out its research mandate to support farmers and promote food security through innovation, but rued what he called insufficient financing from the government.

He revealed that NARO received Shs.79.6 billion from the government for the financial year 2019/2020, way short of the Shs.300 billion they had requested for, to be able to operate at optimal level.

“For research to serve the current and future generation, there is a need for sustainable research capacity in terms of highly skilled people, competitive and highly equipped facilities, sustainable and adequate funding and land. Because agricultural research is made on land,” he said.

The post Prioritize Agricultural Research – NARO appeared first on The Cooperator News.

Moses Ali summons West Nile leaders over Walimu SACCO funds

1st Deputy Prime Minister and Deputy Leader of Government Business in Parliament Moses Ali has invited Local Government leaders from West Nile over the Shs.399.850,000 received by teachers’ SACCOs hailing from the sub-region.

In a letter dated 30th July 2019 and addressed to the LCV Chairpersons of Koboko, Adjumani, Arua, Maracha, Yumbe, Nebbi, Moyo, Zombo, Pakwach, Obongi and Madi Okollo which theCooperator has seen, Gen(rtd) Moses Ali noted that “it was deemed prudent that a meeting of all stakeholders be convened” to among others; sensitize them about the Teachers’ SACCO funds, ensure that all leaders in West Nile benefit from the funds and carry out capacity building for leaders and members of SACCOs about best SACCO management practices.

The invitation letter, which was copied to all the sub-region’s Resident District Commissioners, Chief Administrative Officers, District Commercial and Education Officers, Town Clerks, Chairpersons of SACCOs and SACCO board members, also noted that the meeting would seek to determine a savings and loan recovery model that shall be convenient for all SACCOs in the sub-region.

The Chairperson of Walimu SACCOs Union has also been invited to attend.

The funds are part of the shs.25billion committed by the Government of Uganda in 2010 to Walimu SACCO – the umbrella Union of all teachers’ SACCOs in the country. The commitment by President Museveni followed incessant demands by teachers for a salary increment and was intended to create a central fund from which all teachers across the country could borrow at affordable interest rates.

The money was supposed to be released in installments of shs.5billion every year, starting with the 2011/2012 financial year. So far, Shs.17.085 billion has been released, with the last installment of Shs.1.3billion released last month.

The post Moses Ali summons West Nile leaders over Walimu SACCO funds appeared first on The Cooperator News.

CID Questions Coop Boss Ivan Asiimwe, Two Others over Forgery, Fraud

Kampala, Uganda: Following the interrogation of Uganda Cooperative Alliance General Secretary, Ivan Asiimwe, last Friday on suspicion of forgery, police today questioned two more senior officials of the Union on the same matter.

The officers are Rosanne Muhumuza, the human resource manager and Sam Odeke, the finance manager.

The two were interrogated by police detectives based at the Uganda National Roads Authority’s Investigations and Compliance Department over allegations of forgery, abuse of office, and causing financial loss at the cooperatives umbrella body.

First to be interrogated was the Human Resource Manager, Rosanne Muhumuza, who arrived at UNRA’s head office in Nakawa at 10.26am. The interrogation lasted three and half hours. Finance Manager, Sam Odeke arrived for questioning at 2pm, and was questioned for three hours.

Last week, police interrogated Uganda Cooperative Alliance (UCA) General Secretary Ivan Asiimwe, over suspected use of forged board minutes to access UCA’s residual land tittles previously held by Uganda National Roads Authority (UNRA).

No charges have been preferred against the officials.

Chelimo Beata, CID head of Compliance and Investigations department at UNRA told theCooperator that investigations were progressing on schedule: “We are yet to get to the bottom of the matter, but so far all those summoned have appeared and my team is handling the interrogation,” said Chelimo at her office in Nakawa.

When asked about the investigation’s findings so far, she was reluctant to reveal details, but said concrete findings would be ready by Tuesday next week.

The investigations follow a number of complaints by UCA senior management staff to the union’s board and the Ministry of Cooperatives.

In a 16-page petition to the UCA board, the staff accuse UCA’s leadership and Ivan Asiimwe in particular of abuse of office, financial mismanagement and disrespecting and maltreatment of staff members.

“We would like the board to interest itself in how project funds are utilized in UCA because on several occasions, partners have expressed dissatisfaction over the utilization of funds in the organization,” the petition reads.

The staff want Asiimwe to step aside as investigations continue.

Ends

The post CID Questions Coop Boss Ivan Asiimwe, Two Others over Forgery, Fraud appeared first on The Cooperator News.

Microfinance Regulator Boss Warns Money Lenders Against Violating Client’s Privacy

The newly appointed Executive Director of Uganda Microfinance Regulatory Authority has warned money lenders against demanding for national identity cards, bank ATM and passport as security for loans.

Edith Namugga Tusuubira says demanding for such documents amounts to a violation of principles of consumer protection and infringes on the privacy of customers.

Her warning is based on the 2016 Tier 4 Microfinance Institution and Money Lenders Act which, prohibits the use of bank ATMs, warrant books, passports and national identity cards as collateral.

‘For instance, we are no longer accepting lending using security as someone’s national ID, which has been the practice. We no longer accept security in form of someone’s passport because it is intended for identification,’ Tusuubira said.

‘We, also, no longer allow organisations to take people’s ATM cards. Those are some of the practices that UMRA is trying to curb. We also believe that if you operated under UMRA standards, there will be improved trust between the two parties that are transacting under the Tier 4 law,” Tusuubire added.

Tusuubire revealed that the Authority plans to carry out nationwide sensitization programs to create public awareness of the regulatory requirements for money lending, starting this financial year.

The law safeguards people seeking financial services from money lenders. It spells out stringent measures for persons trading as money lenders, who are required to register as corporate entities before transacting business.

The Uganda Microfinance Regulator Authority is charged with licensing and supervising money lenders.

Edith Tusuubira ascent to the helm of the authority in May, 2019 after the Board approved her to replace Elly Avu Biliku, who was the acting Executive Director since 2017 when the authority was established.

In an interview with theCooperator, she promised to tighten her grip on all the Tier 4 Microfinance Institutions and money lenders. Tier 4 microfinance institutions include Saccos, non-deposit taking microfinance institutions, self-help groups and community based microfinance institutions.

‘Historically, we have had many people borrowing and lending money informally and, sometimes, at a point of disagreement; it is not very easy for you to tell who is doing the wrong and the right thing,” said Tusuubira.

As such, Ugandans are encouraged to embrace the Tier 4 Microfinance Institutions and Money Lenders Act by obtaining licenses from UMRA that will allow them carry out business legally.

‘I picture a well-regulated microfinance sector with information that is reliable and dependable, a fully regulated financial system whereby transactions are covered, with UMRA under Tier 4 Microfinance and Money Lenders Act,’ says Tusuubira.

Tusuubira envisions curtailing fraud, with a system that identifies clients with a unique identification code and where the various financial systems communicate with each other and track transactions of any kind.

The post Microfinance Regulator Boss Warns Money Lenders Against Violating Client’s Privacy appeared first on The Cooperator News.