Gulu Market Vendors Locked In Bitter Fight

GULU – The fast sprouting street markets in Gulu city have teed up a fierce battle between vendors in Gulu main market and roadside traders.

Vendors in the main market are looking to tighten their grip on their trade by locking out the fast sprouting street markets that are fiercely eating into their clientele.

Gulu Main Market Vendors’ Cooperative Savings and Credit Society has asked Gulu city council leaders to stop the mushrooming street markets in the city.

Since Gulu became a city last July, there has been a meteoric rise in street vending of clothes, shoes, and foodstuffs on roads and highways.

Market vendors tipped on SACCO formation

Christine Ajo, a vegetable trader in the main market, told theCooperator in an interview recently that she hardly sells anything in the evening because street vendors take over all the streets and roads.

“Evening is one of the peak hours for our sales; it is the time the working class buys things before heading home. But all those clients are taken away by the road-side sellers,” Ajok said.

Pamela Akumu, who sells second-hand clothes in the main market, said street vending and the poor location of her stall have diminished her business in the last eight months.

Akumu said before Gulu municipality became a city, her clients would walk all the way to her stall but now they go for the cheap clothes sold along the road.

Patrick Omaya, the chairperson of the vendors’ SACCO, said street markets have undercut them yet they pay all dues levied by the city council.

“When we go to Kampala, there are some shoes we buy at Shs 10,000 and sell here at Shs 15,000. But when you go to these street markets, you find such shoes being sold at Shs 8,000, so you wonder, where do they buy their stock from? Are those not stolen goods?” Omaya asked.

There are 22 gazetted markets within Gulu city. Omaya appealed to city council leaders to ensure that all street vendors are absorbed in those markets.

“These gazetted markets within the city still have space; they should be well furnished so that the sellers enter them. Some markets have no latrines, others have no dumping space. For instance, Highland Market has a dumping space right in the middle of the market, which is a health hazard because the rubbish takes long to be disposed of,” Omaya said.

Santo Obura, the Vice Secretary of Gulu Market Vendors SACCO, said the city council leadership has failed to handle the matter.

“Street vending is affecting us because clients prefer street shopping, leaving us market vendors with very few clients. We need freedom of biashara in the markets, not on the streets,” Obura said.

Gulu City Mayor, Alfred Okwonga couldn’t be reached for comment.

Gulu Market Vendors SACCO was registered in 2019 and has more than 2,000 members.

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Court Summons Civil Servants Over Forgery

LIRA – Grade One magistrate’s court in Lira has issued summons for three civil servants accused of forging an attendance list of the annual general meeting of Ayago SACCO.

The summons were issued on April 16 after the three skipped court.

The suspects are; Felix Odongo, a businessman, Lillian Alwedo, Richard Oyuku, and Denis Omara, all primary school teachers, and Josephine Alobo, the commercial officer of Lira. They are battling two counts of obtaining money by false pretense and uttering false documents.

However, only two of the accused persons; Josephine Alobo and Lillian Alwedo appeared before Lira Grade One Magistrate Hillary Rwamiranga on April 16.

Three skipped court and they include; Lira businessman Felix Odongo, Richard Oyuku, and Denis Omara, all teachers at Ayago primary school in Lira.

The magistrate remanded Alobo and Alwedo to Lira Central Government Prison until May 1, 2021, and immediately issued summons for the three.

Court heard that the accused, on January 15, 2020, while at Centenary Bank Lira branch, without lawful authority, forged an AGM attendance list of Ayago SACCO members in Lira City West Division.
The prosecution told the court that the accused persons wanted to change signatories to the Sacco’s bank account, but were arrested before they could accomplish their mission.
State Attorney Martin Rukundo also informed the court that investigations were still ongoing.

Ayago SACCO Limited in Lira City East division was established in 2012. It is fully registered with the Ministry of Trade, Industry, and Cooperatives. The Sacco has 2,137 Members, 121 VSLAs, 14 institutions, and a current loan portfolio of over Shs 300m.

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51 SACCOs In Lira Get Emyooga Funds

LIRA –Fifty-one Savings and Credit cooperatives (SACCOs) in the Northern District of Lira have received Shs 30m each under the presidential initiative on job and wealth creation commonly known as Emyooga.

Emyooga was launched in August 2019 by President Museveni to spur a shift from subsistence to market-oriented production.

The government set aside Shs 260 billion to bankroll the programme with each constituency meant to receive Shs 560 million.

James Chemutai, the Deputy Resident District Commissioner of Lira, confirmed the funds have reached the accounts of the beneficiary SACCO groups.

“We have received 51 certificates, 33 are for Erute North and Erute South constituencies, and the remaining 18 for the city. All these Saccos have already received funds on their accounts, that means the president has fulfilled his pledge,” Chemutai told theCooperator in a recent interview.

“When the president launched the Emyooga program, very many people thought it was a campaign tool. They said the president was looking for votes through this Emyooga, which was a total lie. Now that politics is over, many people still thought the money would not come,” he said.

Chemutai applauded the president for honoring his pledge but cautioned beneficiaries to utilize the funds well.

“I take this opportunity to caution the beneficiaries of this money not to eat up this seed because Emyooga is a seed that the president feels should germinate and help the population get out of poverty,” he said.

He said people will be arrested for misusing the money.

The Lira Deputy Commercial Officer Santos Olade said some of the approved Sacco groups have already withdrawn their money from their bank accounts.

Olade said one performing artists SACCO in Erute South had already withdrawn up to Shs 24 million from their account.

“Emyooga guidelines require that when you have deposited Shs1million into the bank account, you end up getting Shs 3 million, so this group had Shs 8 million on their Sacco account so they got Shs 24 million,” he said.

Samuel Odongo, the chairperson of Erute South performing artist SACCO, said they will use the Shs 24 million to buy more equipment and give loans to members.

“We have a lot of experience and talent but we could not showcase it because we were financially unstable but now with the availability of the Emyooga money, we are optimistic we will have a better livelihood,” he said.

On December 11, 2020, the Ministry of Finance, Planning and Economic Development wired Shs 1.5 billion to Lira district and each of the approved SACCO groups account received Shs 30 million.

Erute North constituency received Shs 500 million, Erute South got Shs 530 million and then Lira Municipality (now Lira City West) and East Divisions got Shs 560 million, which was instead wired to Lira City West Division leaving East with nothing.

Emyooga cash is largely given to Ugandans in the informal sector organized in Saccos under 18 clusters including; Boda Boda riders, tailors, taxi drivers, restaurants, welders, market vendors, women entrepreneurs, youth leaders, people with disabilities, journalists, performing artists, veterans, fishermen, private teachers, and elected leaders.

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Budget: Kwania Cooperatives Get Shs 89m

KWANIA –The district local council has allocated Shs 89,378,000 million to run cooperatives next financial year. The money will go to the 14 fully registered Saccos in the Northern district, and 917 Village Saving Associations (VSLA).

According to the draft budget presented before the council on April 19 2021 by the Secretary of Finance and Administration Geoffrey Eling Owera, Shs 89m was allocated under Trade, Industry, and Local Economic Development.

The money, according to Eling, will cater for market linkage services, cooperatives mobilization, and outreach services.

About Shs 2.9bn has been allocated to production and marketing, Shs 669m to statutory bodies, finance (Shs 216m), and administration (Shs1.7bn), while Shs 280m went to natural resource, community-based services got Shs172m, water and sanitation (Shs 582m) and Shs 967m was allocated to works and technical services among other sectors.

The draft budget was consequently deferred to the sectoral committee for scrutiny before the final approval in the subsequent council sitting as directed by Local Government Minister Raphael Magyezi.

The district, however, has a shortfall of about Shs 4bn in 2021/2022. In the financial year 2021/2022, the district projected to raise about Shs 24.5b down from Shs 28.6 billion projected last financial year.

Geoffrey Eling Owera, the finance secretary, blamed the shortfall on the Covid-19 pandemic, which disrupted local government revenue. Eling told the council that the district only managed to raise 20 percent in local revenue in the last F/Y interrupted by Covid-19.

Eling said key stakeholders and district leaders have to lobby for more funding to improve service delivery.

“Mr. Speaker, as leaders and stakeholders in the district, it is our full responsibility to mobilize for more funding from donors through lobbying and advocacy, this calls for concerted efforts for the wellbeing of the people of Kwania district,” he added.

Albina Awor, the chief administrative officer of Kwania, blamed the budget shortfall on the change of the Indicative Planning Figure (IPF) and a ban on charcoal burning and transportation, a major source of local revenue.

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Nwoya Farmers Turn To Cashew Nut Growing

NWOYA –Slumping crop prices have shifted farming in the northern district of Nwoya to the high-priced cashew nut.

The district recently received 5,714 cashew nut seedlings from the government’s Operation Wealth Creation program.

Interviewed for this story, Lt. Colonel Alfred Olak, the Operation Wealth Creation Coordinator Nwoya district, told theCooperator that seedlings are given to farmers with prepared gardens.

“We have also prioritized cashew nuts among the enterprises that we give to our people. Cashew nut is a high-value crop that can fetch a lot of money if a farmer takes good care of it. This is not a cheap crop,” Olak said.

Omony Denis, a local farmer in Anaka Town Council, Nwoya district, said he received 120 seedlings, which he has planted and expects to start harvesting in two years.

“I am told one can harvest cashew nuts for several years so I am taking these cashew nut seedlings as my retirement package,” said Omony, who initially planned to plant eucalyptus trees.

He said he was advised to space the planting by 7X7, 8X8, 9X9, or 10X10 meters.

Cana Brian, another farmer in Tochi village, Koch Goma Sub County, said he began eyeing cashew nuts after realizing they are pricey.

He received 280 seedlings, which he planted on five acres.

Cana has been growing jackfruits and mangoes. “I got interested in cashew nuts after seeing how expensively they are sold in supermarkets.”

A 75 grams packet of cashew nuts is sold at Shs 6,000 in most supermarkets in Gulu.

Alfred Kilama, the district agricultural officer, said cashew nut growing is not entirely new in the district because some commercial farmers and a few individuals have already planted the crop.

“Some commercial and individual farmers got the cashew nuts two years ago from the National Agricultural Research Organization-NARO under the National Agricultural Advisory Services-NAADS and have planted cashew nuts on large scale. One commercial farmer has 200 acres of Cashew trees, which have started flowering,” he said.

“We have demonstration farms where farmers who have planted cashew nuts can go and get knowledge on how to take care of the trees. If they take good care of the cashew nuts, then they should be able to flower after two years,” Kilama added.

Asked how big the cashew market is, the agriculture officer said the nuts will be supplied to processing factories in districts like Soroti, Kiryandongo, and Kampala.

The challenge is farmers have to keep pests and diseases at bay and ensure that they give the trees enough manure, Kilama said.

He said plans are underway to organize farmers into cooperative groups.

Kakuru Timonthy, a system administrator at the Operation Wealth Creation secretariat in Kampala, said the cashew nut was introduced as an enterprise in the Operation Wealth Creation (OWC) program in 2019.

He said beneficiary districts include; Katakwi, Nwoya, Kapelebyong, Bulambuli, Kaberamaido, Soroti, Bukedea, Kumi, Amuru, Napak, Nakasongola, and Serere.

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Kwania boda operators Protest government tax

A government-pushed proposal to levy an extra tax of Shs 50,000 on motorcycles has touched off a fierce debate and protest among members of Kwania Boda Boda Savings and Credit Cooperative Society (Sacco).

In the new proposal, the government suggests that all owners of motorcycles including Boda Boda operators will be subjected to an annual tax of Shs 50,000 effective July 2021.

The levy, which is currently being scrutinized by the finance committee of Parliament, is among a string of new taxes government intends to introduce to raise at least Shs200b in annual revenue.

However, the over 200 Boda Boda Sacco members, under their umbrella group; Kwania Boda Boda Association (KBBA), have asked the government to back down on the proposal.

Speaking during the annual general meeting on April 15, the Boda operators argued that levying an extra tax on their operations would diminish their earnings.

Jimmy Obaro, a Sacco member, said an extra tax would push them out of business.

“Currently, motorcycle owners pay an annual Public Service Van (PSV) license of Shs 60,000 and Shs50, 000 for motor third party, leave alone the local service tax, if the government goes ahead to levy another tax then many would be left with no option but to quit Boda Boda business, this will affect our Sacco, which entirely depends on the Boda Boda job,” he said in an interview.

Another Boda Boda rider, Robert Abal, who operates at Aduku mayor’s garden, said from about Shs 40,000 to Shs 50,000 he makes weekly, he saves Shs 100,000 monthly. He is worried that the new tax will affect his savings and render him bankrupt.

Walter Opyene, the Kwania Boda Boda Sacco chairperson, said 80 percent of his members got motorcycles on loans and are saddled with the burden of repaying the money. He wants the government to back down on the proposal.

In an exclusive interview with the Cooperator last Wednesday, Bageya Waiswa, the permanent secretary in the Ministry of Works, said an extra tax on the Boda Boda sector will help the government to ascertain whether a motorcycle meets required standards.

“Regulating the motorcycle or the Boda Boda industry will in the first place, reduce rampant motorcycle thefts, control accidents and all in all raise revenue to improve service delivery,” he said, noting that the government had restarted the process to ensure SGS resumes inspecting motorcycles and motor vehicles.

According to Bageya, the government is seeking to at least raise Shs7b from motorcycle license.

So far 63,878 motorcycles have already been cleared to enter the country during the first and second quarter of the 2022/21 financial year. However, the current trends indicate the figure will grow by the end of this financial year, giving the government an opportunity to increase revenue projections.

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Rwampara SACCOs Get Nod To Borrow Emyooga Funds

RWAMPARA – April 14 was a day of celebration and a moment of renewed hope for members of saving groups in the Western district of Rwampara after they got the official nod to borrow Emyooga funds.

The district officially launched the presidential Initiative on Emyoga last Wednesday, which opened the access door for saving groups, SACCOs, to get the government’s poverty alleviation funds.

When most SACCOs in the country received Emyooga funds in November and December last year, Rwampara district was pushed on the sidelines.

In March 2021, Emmy Kateera Turyabagyenyi, the Rwampara Resident District Commissioner, reported to the Minister for Microfinance Haruna Kasoro that SACCOs were barred from accessing Emyooga funds in Post Bank where 36 SACCOs had opened bank accounts.

However, on April 14 residents broke out in joyous celebrations at Nyeihanga playground in Nyeihanga town council where 36 Saccos from both counties of Rwampara district were handed certificates –officially giving them the nod to withdraw Emyooga funds to kick-start their projects that had stalled since August last year.

Amon Mutabarura, the Rwampara district commercial officer (DCO), said the delay allowed proper sensitization of members to put money to good use.

He confirmed that Rwampara received Shs 1.4 billion and all the money is already wired to their bank accounts.

“All the 36 SACCOs have gotten the money, it’s already on their accounts and they have all the freedom to withdraw this money,” Mutabarura said.

“What we have achieved is what started in the month of August when the president asked us to go and teach people how to save money through their SACCOs,” he added

In his remarks, the RDC Turyabagyenyi warned; “We are going to monitor them and in case this money we have dispersed today is misused either by an individual or leaders we shall definitely apprehend them. The clients of the SACCO are group members, not individuals.”

Turyabagyenyi said more parish development funds will be disbursed in July 2021 to benefit every parish, which will be receiving Shs 40million per association.

“This money according to the guidelines is basically to empower the parish associations meaning that those which will have been saving with Emyooga SACCOs will benefit more and longer. As long as the SACCOs keep performing well according to the monitoring report they will qualify to get up to Shs 100 million from the Microfinance Support Centre as the lead agency at 8% per annum which will continue flowing every year,” he said.

Vincent Nuwagaba, the DCO Mbarara, reported that the program has already registered some setbacks since it is not intended to aggregate the already existing cooperatives/SACCO issues.

“Emyooga was a good initiative for the president but you see groups at the parish level forming a SACCO and the SACCO operating at a constituency level within the specific 18 Emyooga associations like mechanics but it’s high time government thought about injecting money in the already existing cooperatives in every financial year to increase on their portfolio” Nuwagaba advised

He also bashed Microfinance Support Centre (MSC) for delaying releasing Emyooga certificates.

“The money came on 23rd December 2020 but the certificates have come in April. Count the time wasted since then,” Nuwagaba said.

Andrew Zimbe, the Micro Finance Support Centre (MFSC) Zonal manager southwestern, warned district technical staff to refrain from taking bribes from Emyooga co-operators.

“Some commercial officers in certain districts are taking bribes to clear SACCOs to access Emyooga funds. Don’t do anything before you consult, leave the RDC and the CAO who is your boss to give you updates,” Zimbe said

“I want to congratulate you for having arrived on this day but no association should access a loan without following the guidelines, which are stipulated in the lending policy. Like where I have been before an association goes to access part of the Shs 30million it should have saved 20% with the SACCO,” Zimbe said.

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Zombo signs EFOTI deal To improve tea yields

WEST NILE –Tea growing in the West Nile district of Zombo has got an accelerating effort that could boost local production.

Zombo Tea Growers’ Cooperative Society and Edwin Tea Foundation Initiative, EFOTI, a company with good expertise in tea farming, have signed a memorandum of understanding that aims largely at promoting tea research, production, productivity, value addition, and tea product diversification in Zombo for five years.

The MoU was signed last Friday, April 9, by the Chairman of the Cooperative, Christopher Unencan, the Secretary, Jungiera Geoffrey, and Aneniwu Patrick, a cooperative tea farmer, and Edwin Beekunda Atukunda, the founder of EFOTI.

Unencan told theCooperator in an interview that, “We signed the MoU to enable us to work in partnership with EFOTI in our district to build the capacity of farmers in terms of training and value addition.”

Tea growing was reintroduced in Zombo in 2013-2014. Unencan said members who planted tea in 2016-2018 are harvesting now.

Unencan said the cooperative, formed in 2016, has over 300 registered members, who have grown over 500 acres of tea.

He said, however, that despite the huge acreage of tea plantations, members are still earning very little from the enterprise because there is no factory in the area to process the harvest and add value to attract high prices.

“The registered members of the cooperative suggested that we come to an agreement with EFOTI because they have been struggling to sell their tea. They are selling their tea locally after a very long and tiring process of pounding the leaves using the mortar and pestle,” Unencan said.

He said farmers believe the MoU will spur the establishment of a tea processing factory.

Although there are about 36 tea processing factories in Uganda, all of them are concentrated in western and southwestern Uganda.

Edwin Atukunda Beekunda, the founder of EFOTI, said an area qualifies to get a factory after planting at least 2000 acres of tea.

He said following the MoU, EFOTI will conduct training in agronomic practices to enable improvements in tea yields and quantity and also promote value addition, processing, branding, packaging, marketing, and export.”

He said they will also, “Build the capacity of tea nursery operators, tea growers, students and other stakeholders for improved tea cultivation, processing, and marketing.”

Tea is one of the leading cash crops in Uganda with a yearly export of 65,000 metric tonnes. A 2020 report by Ugtea shows that Uganda is the second leading tea producer and exporter in Africa and among the top 15 in the world.

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Hoima Sacco, Government clash over Shs 50m loan

HOIMA – In a speech at the annual general meeting of the Hoima District Referees Saving and Credit Co-Operative Society (Sacco), Board Chairman Patrick Kunihira, publicly voiced his concern about a deliberate lack of financial and technical support from the Microfinance Support Center (MSC).

Kunihira told members gathered at Kitara Secondary School on April 4 that last year the Sacco applied for a loan of Shs 50 million but has got no response to date.

He said such challenges are frustrating the growth of the Sacco in the district yet MSC is mandated to help Saccos grow.

He said they submitted all the paperwork including a land title valued at Shs 50 million but MSC refused to give the loan.

He said the SACCO management wrote to the commissioner in charge of MSC and got the much-needed nod of approval for the loan.

“Our Sacco is moving on well but the challenge we are getting is that government is not supporting us, in July last year we applied for a Shs 50 million loan but to-date MSC has not replied to our request, we have moved, given them our land title and everything they demanded but unfortunately they have not given us this loan. Government injects a lot of money in MSC, now we are asking ourselves if they can’t lend money to our Sacco, who does MSC lend to?” he asked.

He also accused the minister of Finance Matia Kasaija of neglecting Saccos formed to help people climb out of poverty.

“As Banyoro we are wondering why we cannot benefit from the NRM government yet our president always points to our own in government like Finance Minister Matia Kasija.”

He said they invited MSC officials and local leaders to attend the AGM but nobody turned up including the local council chairperson. He said Saccos are collapsing because leaders and MSC officials don’t value and support them.

Interviewed for a comment, Andrew Zimbe, the Microfinance Support Center regional manager, said the loan disbursement was delayed by the disruption of the Covid-19 pandemic.

He said that last year Bank of Uganda wrote to MSC stopping the center from giving out loans because the economy was not doing well at that time. He urged Sacco members to remain calm. Soon, he said, money will be disbursed to the SACCO.

“When we came out of the Covid-19 lockdown you could not rush to give out money because even the people who were having our money were not paying, people who received our money in 2020 were requesting us to reschedule the repayment periods, so we had to study the economy slowly by slowly. Definitely last year no lender was giving out money, even the Bank of Uganda wrote to all banks and commercial institutions and told them that please do not give out loans based on collateral,” he said.

He also said the Sacco never surrendered any land title to MSC. He said the center doesn’t take collateral before giving out loans.

Zimbe apologized for not attending the AGM.

“Personally I was supposed to attend but we had to pick Emyooga certificate for Hoima from our head office, so we had to choose between a rock and a hard place,” he said.

SACCO PROGRESS

Philip Tibaigana, the Sacco manager, said the Sacco currently has Shs 330 million in savings and Sh22 million in shares.

He said the Sacco, which started in 2015, has 112 members and has given out Shs 279m in loans. The Sacco has two acres of titled land with Eucalyptus trees, computers, and furniture among other things.

Tibaigana however, said some members are failing to save or pay back loans largely due to the ravages of the Covid-19 induced lockdown.

“We would be having over Sh 330 million but because of Covid-19 our members lost their businesses and others are just recovering and this reduced our savings because our members are no longer saving as they used to, some are withdrawing their savings to boost their business and others to look after their families,” he said.

He said in the future the Sacco may morph into a bank, have a farm, trees, transport system, and depot. “We want to have investments to ensure sustainability, so I want to encourage our members to continue saving so that we can achieve this dream.”

James Ayebale, the Sacco treasurer, said the Sacco has grown because it follows elaborate policies such as holding meetings and budgets.

“We started at village level but now we are at the district level, it has not been easy but we have been following the Sacco policies, such as financial policy, board policy, and human resources policy,” he said

Julius Tukwasibwe, a teacher at St James SS, said the Sacco has improved his livelihood. He said he has used a small loan borrowed from the Sacco at a 1% interest rate to construct a house, to acquire a plot of land in town, and pay school fees for his children.

During the meeting, Patrick Kunihira was elected chairman deputized by Tadeo Asaba. James Ayebale is the treasurer.

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New Sacco to give out Cheap loans in Hoima

The newly launched KASSOBA SACCO is on course to open with offers of cheap loans to members of Kabalega Secondary School Old Boys Association (KASSOBA).

The official launch was on April 3 at Kolping hotel in the western Hoima town.

According to Samuel Mugisa, the interim chairperson of KASSOBA SACCO, the old boys resolved to form the SACCO in 2018 during the annual general meeting.

“The SACCO was supposed to kick off in 2020 but we were disorganized by COVID-19. But when we met again in March this year we resolved to start,” Mugisa said.

He said the SACCO has 90 registered members already and hopes to shore up the numbers to 300 members within the next two years.

“Members are buying each share at Shs 20,000. Saving has also commenced, we hope to have saved at least Shs 500 million in two years. This is going to be the ladder to the members’ economic development,” Mugisa said.

“Many of our boys have lost properties due to the high interest rates from banks and financial institutions but I am optimistic that with this SACCO, our members will be able to access loans at an affordable interest rate. We want our SACCO to be vibrant like the (army’s) Wazalendo SACCO,” he stressed.

Mugisa said in the future they will allow outsiders to access conditional loans.

“Worldwide SACCOs have been the engine of development and many people have prospered through them,” he added.

In a speech at the SACCO launching, John Tumusiime, the district commercial officer of Hoima, took members through the process of forming, sustaining, and developing a SACCO.

“If your SACCO is to move from one level to another, you have to be with a transparent leadership and also ensure that record-keeping and accountability are key. Also never leave the entire burden to the leadership. You members always participate in the day-to-day SACCO activities,” he noted.

The old boys also elected an interim committee to steer the SACCO. Samuel Mugisa is the chairperson deputized by David Muhumuza. Charles Baisa is the treasurer, Alfred Kusiima is the general secretary and Ronald Murungi is a mobilizer.

KASSOBA, which formed the SACCO was started by the old boys of Kabalega Secondary School in the western district of Masindi in the 1980s.

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