Street Vending Empties Hoima Central Market

HOIMA – One-by-one, vendors are walking out of a fast emptying Hoima Central Market and pouring onto the crowded city streets to sell their merchandise easily.

The abandoned lockups are mainly on the second and the third floor of the storied facility built under the Markets and Agriculture Trade Improvement Project – MATIP.

The Shs 11 billion project was funded by the African Development Bank –ADB. About 100 lock-ups are occupied out of the available 180.

The market has over 800 registered vendors. theCooperator has however, learnt that a number of vendors are abandoning the lock-ups because customers are buying from the streets.

Henry Kyarigonza, the chairperson of Kahoora Market Vendors SACCO, said the growing number of street vendors is under cutting their colleagues inside the market.

https://thecooperator.news/traders-cry-foul-for-missing-out-on-credit-over-sacco-management/

He said they have severally asked Hoima city authorities to intervene and force street vendors to operate in gazzeted areas without much success.

“This challenge is also forcing the remaining vendors in the market to abandon the facility and go on the streets since buyers are no longer coming to the market because they get what they need on the street,” he said.

“For example, we had allocated the eggplant sellers lockups inside the market but since they wait for the whole day without getting a customer, they have also moved out of the market to sell their produce on the street,” he said.

Some market vendors have demanded a tax waver, citing slow business and low sales brought on by the outbreak of the Covid-19 pandemic and unregulated street sales in the central business area of the city.

Many sellers have relocated to city streets including Bunyoro-Kitara and Byabacwezi Roads.

“Every place in the city has turned into a market, therefore I request authorities to force such sellers into the market as a business center for specific commodities other than trapping buyers outside of the market on streets leaving those inside without customers” Haruna Kasangaki, a vendor and SACCO member.

Godfrey Kutegeka, the chairman Hoima Central Market Traders Association, said vendors are pushed out of the market by high taxes.

He demanded a tax waver. He said a combination of slow business, slow sales, outstanding bank loans and tax arrears make it hard for them to pay tax and sustain their trade.

“The vendors have a lot of debts because business slowed down due to COVID-19 and they cannot pay taxes. This forces some to move out of the market and operate on the street,” he said.

Hoima City Clerk, Godfrey Mbamanyisa, insists that vendors must pay their arrears worth about Shs 200 million.

He says failing to pay tax implies a failure to deliver various services in the market like security, water and electricity among others.

“We are supposed to pay UMEME, National Water and Sewerage Corporation (NWSC) and other service providers such as cleaners and security are demanding Shs 42 million. Where should we get this money if the vendors are asking for tax wavers,” he asked.

Mbamanyisa said that soon they will evict all street vendors and hawkers.

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Amuru Builds Shs1.5bn Produce Stores

AMURU –To spur on-farm productivity and shore up the market for big volumes of agricultural commodities, Amuru District local government is constructing 11 produce stores worth about Shs1.5 billion for cooperative groups and farmer associations.

The 3,000 metric tons each capacity stores are being built in Atiak Sub County, one in Pabbo Sub County, four in the northern Amuru town council and three in Lamogi Sub County.

The beneficiary cooperatives include; Pupwonya Cooperative Society, Pabbo Rice Cooperative Society, Amuru Progressive Farmers’ Cooperative Society, Ojigi Cooperative Society in Amuru Sub County and Patopa Cooperative Society in Amuru district.

Samuel Kidega, the Amuru District commercial officer, said construction of the produce stores is funded under the Agriculture Cluster Development Project-ACDP program.

ACDP, which started in January 2012, is a partnership project between the Ministry of Agriculture, Animal Industry and Fisheries and the World Bank –financed by the bank’s International Development Assistance (IDA).

https://thecooperator.news/ministry-of-agriculture-to-construct-post-harvest-handling-facilities-in-57-districts/

The project, implemented in 57 districts across Uganda, aims to raise on-farm productivity, production, and marketable volumes of selected agricultural commodities (maize, beans, rice, cassava and coffee).

Kidega said farmers have been hiring small lockup shops in the trading center to store their produce.

Amuru District Production Officer, Okwonga Batulumayo said a lack of storage facilities in most sub counties in the district forced farmers to store their produce in their houses.

“Quality is usually compromised when farmers store their agricultural produce in the house,” Okwonga said.

The production officer said Shs 2.5 billion has been given to the district to construct roads linking storage facilities to the market.

“These roads will ensure that farmers do not waste too much money on transport to access the market for their produce,” He said.

Meanwhile, Geoffrey Orsbon Oceng, the Amuru Resident District Commissioner, urged farmers to own stores.

“The government is doing everything possible to help farmers move out of poverty by investing in projects that directly help them but they have to embrace the projects,” he said.

Amuru District has 15 produce stores already, which were constructed by non-governmental organizations but only one in Pabbo Kal in Pabbo Sub-County is fully operational.

Interviewed, Bartholomew Okwonga, the Amuru District Production Officer, said some farmers abandoned the produce stores because of poor handling of their produce in storage.

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Abapiri Farmers Lobby For Shs 400m Warehouse

KWANIA –Frustrated by how little farm produce they can stash away, a 450-member group of farmers allied with Abapiri Oil Seed Cooperative Society, in Abapiri Village, in Chawente Sub County, Kwania District is lobbying the government, well-wishers and donors for Shs 400 million to construct a warehouse.

The cooperative, which deals in soya beans, maize, simsim and other cereal crops plans to construct a store to bulk members’ farm produce for sale.

Stephen Otim, the chairman of the cooperative, said they have already procured land to build the warehouse but are still lobbying the government, well-wishers and donors for funds.

https://thecooperator.news/budget-kwania-cooperatives-get-shs-89m/

“We are grappling with the challenge of proper storage, however, the cooperative has a plan of constructing a big store estimated to cost Shs 400 million, we already have land but we are seeking support from the government,” he said.

He said the government should rehabilitate roads and provide irrigation systems to boost farmers’ production. Thomas Olal, a member of Abapiri Oil Seed Cooperative, is optimistic that construction of the warehouse will allow them to bulk their produce and sell at affordable prices to help members climb out of poverty.

Hellen Ayao urged the government to invest in different cooperatives in the country. She rallied people to join groups in order to benefit from the government programs.

“We lack a warehouse, I call upon the government to support us, we want to bulk our produce and sell at affordable prices as you know bulking is power. This will help us get a lot of money to eradicate poverty at the grassroots. I want to encourage people to join the group so that we benefit from the government program,” she said.

Patrick Bura, the Kwania District Commercial Officer, said in a telephone interview that; “Cooperatives have a potentially strong role in reducing poverty and social exclusion, and promoting national development. The government is yet to plan on how to support such cooperatives, but as of now they can write a proposal to the Africa Development Bank for financial support, yes as of now.”

Abapiri Oil Seed Cooperative Society started in 2017 as a Village Savings and Loan Association (VSLA) – largely to promote commercial agriculture and strengthen group marketing for increased household income. The Cooperative currently has a total of 451 members with 150 loan portfolios. However, it is operating without a proper storage facility.

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Gulu Farmers Avoid Large Scale Farming

GULU –Deeply frustrated by the high cost of opening and ploughing virgin land, farmers in Acholi sub-region have steered clear of large scale farming.

Beatrice Kipwola, a member of Paicho Central Kal Cooperative Society in Paicho Sub County, Gulu district, told theCooperator that she has restricted herself to cultivating no more than five acres of land.

“Each season I plant only five acres of both soya beans and beans. This year, I had planned to add another five acres, but this means I have to inject Shs 900,000 in just opening and ploughing the virgin land, minus other inputs, planting and weeding expenses. This is a risk I don’t want to take, considering that high yields are not a guarantee,” Kipwola said.

A tractor costs between Shs 80,000 to Shs 90,000 to dig up an acre of unused land. An ox-plough costs Shs 40,000.

https://thecooperator.news/gulu-rice-farmers-group-goes-for-big-loans/

Since more than 90 percent of people in Acholi sub region are engaged in either subsistence or commercial agriculture –free hands for hire to open new land are hard to come-by because everyone is busy.

Each person or family does their own land opening.

Kipwola, who gets a net profit of about Shs 300,000 to Shs 400,000 every season, said she is afraid of expanding her gardens because hiring individuals to open land costs Shs 120,000 per acre. She said the high cost diminishes her profit margins.

Kipwola hires an ox-plough to open land.

Joska Lacaa, another member of Paicho Central Kal Cooperative Society, said she cannot cultivate beyond three acres.

Lacaa said she has restricted herself to growing only an acre of ground nuts and an acre of maize to avoid the prohibitive cost of opening new land.

She said uprooting a single tree stump from virgin land costs between Shs 10,000 to Shs 20,000.

“If there are 20 tree stumps on an acre, it means I have to part with a minimum of Shs 200,000 before employing the use of a tractor, twice. So, where will my profit come from?” Lacaa said.

Simon Opiro, the chairperson of Paicho Central Kal Cooperative Society, said land opening is a daunting task for the more active 47 female members of the cooperative. The cooperative has 219 members, but only 81 are active. Unlike men who can do some of the tasks, women have to hire most of the services, he said.

Opiro said that besides the prohibitive cost of hiring tractors for land opening, the whole sub county has only three tractors, which are always occupied. He said it takes about a month or more to get a tractor on-the-ground after booking.

Santa Joyce Laker, the chairperson of Atiak Sugar Plantation Out growers’ Cooperative Society Limited, said land opening is the biggest challenge to the cooperative.

“Operation Wealth Creation gives only seeds; how do you give seeds to someone who is unable to clear a large farm for commercial agriculture?” Laker said.

“We need support from government. It has only supported us to open land for sugarcane, not other crops, yet commercializing agriculture needs a lot of inputs,” Laker said.

A 2016 study of Land, Food, Security and Agriculture in Uganda by Friedrich Ebert Stiftung and Makerere University Business School found that cooperatives in Uganda now, unlike in the heyday of the cooperative movement, are not getting enough government support in terms of inputs.

The study suggests that agriculture credit be extended to cooperatives in form of tractor hire services and supply of inputs such as pesticides and other equipment, such that recovery is done at the time of sale of produce.

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Emyooga: Family Probed For Forgery

HOIMA – Accusations of forgery have roared to the forefront in the creation of three Savings and Credit Co-operative Societies (SACCOs) under the Presidential Initiative On Wealth And Job Creation, Emyooga.

Imposters, passing themselves-off as journalists and artists nearly received official certificates for three SACCOs that would have allowed them access Emyooga money.

But suspicious district officials held on to the certificates, pointing to forgery.

Samuel Kisembo Araali, the City Resident Commissioner of Hoima, confiscated three certificates during the official handover to Emyooga beneficiaries on Monday afternoon, April 26 at Hoima Booma Grounds in Hoima City.

The SACCOs whose certificates were withheld include; Hoima West Constituency Journalists Emyooga SACCO, Kigorobya Constituency Journalists Emyooga SACCO and Hoima West Performing Artists Emyooga SACCO.

https://thecooperator.news/anger-in-hoima-as-leaders-cling-on-to-emyooga-cash/

The seizure of the certificates followed pointed queries about the credentials of the people who turned up to pick the documents on behalf of the three SACCO groups.

Kisembo explained that the SACCOs were formed by none journalists and artists. He said the district will investigate how family members constituted the membership of one SACCO meant for journalists. He said that the culprits will be prosecuted.

He said the Emyooga money was initiated to create jobs and wealth for people. He said anyone who misappropriates the money will be arrested.

“They are three (SACCOs), which we are going to investigate thoroughly because they seem to be belonging to one particular group. One family mobilized themselves and they are all members of the journalists’ SACCO. One is the chairperson, another is the secretary and another is the treasurer. They are not even journalists,” Kisembo said, adding that he withheld the certificates to help in the investigation.

“I am glad that we have been able to detect this before giving them the money. Just imagine if they had already taken the Emyooga money, it would be unfortunate,” he said.

62 out of 72 SACCOs in Hoima district and Hoima City received their certificates. The SACCOs were formed from1,460 Emyooga associations based in the four constituencies of Hoima West Division, Hoima East Division, Kigorobya and Bugahya Counties.

Each constituency has 18 SACCOs and each constituency is supposed to get Shs 560 million out of Shs 2.24 billion allocated to the entire district.

Yosam Tumwebaze, the Resident District Commissioner for Hoima, urged beneficiaries to put the money to proper use.

“This money is for helping you to develop yourselves and move out of poverty, so when you get it, don’t use the money for alcohol, weddings, buying clothes, or marrying second wives,” Tumwebaze said.

Colonel Joram Kagyezi, the coordinator of Operation Wealth Creation (OWC) in Bunyoro region, promised to monitor the beneficiaries to ensure that money is put to proper use.

“The Emyooga money is a seed; you need to use it wisely so that it moves you to another level. I promise that I will move and reach each group that will share this money. So if there is anybody who has been thinking of misusing the money like the way the youth did with the Youth Livelihood Fund, he or she should not take this money because things will not be good for them,” he warned.

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Peg Emyooga Seed Money To Property

MBARARA –Geoffrey Mutebi, the District Commercial Officer of Mbarara, has suggested that loan applications for Emyooga seed money should be pegged to personal property to guarantee successful recovery of the money.

Mutebi made the proposal recently during a talk show on Radio West which was sponsored by The Uhuru Institute for Social Development.

He said the Presidential Initiative On Job And Wealth Creation, Emyooga, is designed to prop up a saving culture among Ugandans and is different from programs like the Youth Livelihood Fund, National Agriculture Advisory Services (NAADS) and Operation Wealth Creation (OWC), which never really changed people’s livelihoods.

“Research shows that 68% of Ugandans still work for the stomach but the Emyooga seed money is meant to focus on the economy where 18 SACCOS in each constituency will be given capital for development,” Mutebi said.

He said all 353 constituencies in Uganda will get a share of government’s Shs 260 billion start-up capital.

“As Mbarara district we have two constituencies; Kashari South and Kashari North, which got Shs 1.2billion that will be divided among the 36 SACCOs,” he said.

Mbarara City received Shs 1 billion in December 2020, which was divided equally between Mbarara North and Mbarara City South divisions while Rwampara district received Shs 1.4 billion for all the 36 emyooga SACCOs in its two constituencies.

“Each constituency formed 18 SACCOs and each SACCO has a start-up capital of Shs 30million,” Mutebi said.

Enock Kerere, the co-panelist and Chairperson of Kashari South Restaurant Owners Emyooga SACCO, said recovery of the Emyooga seed money may be difficult because members have not put up any collateral to guarantee the loans.

“It’s not a revolving fund, its start-up capital but paid at least after three months so how will one pay back when there is no property attached?” Kerere added.

Alex Kibirige, the Chairperson of Kamukuzi Preforming Artists Association, told theCooperator that Emyooga SACCO leaders may be arrested to force them to settle members’ debts.

“Chances of us getting imprisoned will be high because there is no clause for collateral. We are even likely to see the leadership refusing to issue loans because they do not trust members in their Emyooga groups, meaning the money will not be fully utilized,” Kibirige explained.

“How will I give you money when I don’t know your character much as we are dealing in similar skills? What if you default, who will be handcuffed, automatically it will be the chairperson,” he added

“Members still think the money is for sharing and celebrating the election victory (of NRM) since the program came during election time, so you can’t tell them to pay back,” he said.

Kibirige said the money disbursed is too little compared to the number of SACCOs.

“For instance our group requested for Shs 6 million but we were only given Shs 1 million yet we are 22 members. So how do you share one million amongst all those members?” Kibirige said.

https://thecooperator.news/beneficiaries-emyooga-cash-for-saccos-too-little/

Each cluster of skilled SACCOs in constituencies will be given Shs 30 million to cater for multiple groups.

“Remember we removed almost shs 500,000 for operational costs such as transport, printing the constitution, renting an office. I am even stuck with Shs 500,000 on our account because I don’t know how I can distribute it to all members” he said.

He advised the government to re-invest this money in already existing SACCOs to boost their portfolio instead of starting up new ones.

“Our mother SACCOs are already performing and they are established. They are not struggling like our Emyooga SACCOs, why don’t you empower them on condition that they reduce their interest rate such that more members can join? Because all these Emyooga SACCOs were not given a standard interest rate, some are already charging high interests compared to already existing SACCOs,” he said.

“Some are charging 5%, ours is charging 3% but EBO SACCO is charging 2%, so how will these Emyooga SACCOs compete? Actually those that will survive for a year will be few or none,” he said.

Mutebi said emyooga is here to stay.

“I want to explain to Ugandans that this program is meant to change our living conditions because Ugandans are known for working for a daily meal forgetting the next day, so we want to turn this program into a success,” Mutebi said.

“An average Ugandan will learn how to save, how to work and borrow money to improve his or her household income,” Mutebi explained.

Kerere said the disbursed Shs 260 billion has already created an economic impact in communities.

“This is a lot of money in saturation that will not leave the country the way it is. For instance landlords who had their rooms unoccupied in Bwizibwere have already started celebrating as there are over 18 Emyooga offices are already in existence,” he said.

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Anger In Hoima As Leaders Cling On To Emyooga Cash

HOIMA –As district authorities in Hoima continue to hold on to certificates of 62 savings and credit co-operatives (Sacco) denying them access to Emyooga cash for weeks, angry complaints are piling and some savers are demanding refunds.

The complainants are largely members of different Emyooga associations, who formed SACCOs hoping to benefit from the Presidential Initiative On job And Wealth Creation.

Florence Asaba, the Chairperson of Hoima West Women Entrepreneur SACCO, said some members have lost hope of getting the Emyooga cash and are demanding refunds.

Much as the money is already on the SACCO accounts, she said savers cannot access it because they don’t have certificates. She demanded to know why government is delaying to release certificates to members.

“As the chairperson of the SACCO I am finding challenges, people have been saving, others paid for share and subscription fees but what they expected is not materializing, so some members have started demanding for refunds so that they withdraw from the SACCO,” she said.

Interviewed for comment, Andrew Zimbe, the Midwestern Regional Manager for the Microfinance Support Center (MSC), said the SACCO certificates were released to the district leadership headed by Hoima Resident City Commissioner (RCC) Samuel Kisembo.

He said the center released 62 out of 72 certificates to the district leaders.

According to him, Hoima district has 72 SACCOs, which were formed from 1,460 Emyooga associations.

https://thecooperator.news/nine-saccos-cleared-to-receive-emyooga-funds-in-masindi/

The SACCOs are in four constituencies; Hoima West division, Hoima East division, Kigorobya and Bugahya County. Each constituency has 18 SACCOs.

Each constituency is supposed to get Shs 560 million out of Shs 2.24 billion disbursed to the entire Western district of Hoima to benefit 1,460 Emyooga SACCOs.

“We handed over 62 certificates to the RCC two weeks ago, we are just left with 10 certificates, which we are planning to deliver soon,” Zimbe said by telephone on Friday, April 16.

Interviewed on April 19, Kisembo, the RCC, admitted the district received the certificates.

He said they are holding on to the certificates because there are no guidelines on how the money should be managed.

He said they want to train SACCO leaders, beneficiaries and commercial banks managers in SACCO management.

“We received the certificates from MSC but we want to first prepare ourselves before members start accessing this money and we are doing this to avoid what is happening in other districts like Kikuube where SACCO leaders are embezzling the money.” Kisembo said.

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Emyooga Program Is Not Political –Lira RDC

LIRA –Appearing on 88.0 Voice of Lango FM, Lira Deputy Resident Commissioner rigorously fended off pointed allegations that the Presidential Initiative On Job and Wealth Creation, Emyooga program, was introduced to benefit President Museveni’s re-election.

Speaking on Coop Talks on April 20, a radio-talk show sponsored by The Uhuru Institute for Social Development, James Chemutai, said they have heard malicious rumors, which are false that Emyooga program was a political campaign tool.

The malicious rumor, he said, has been propelled by some local leaders, who did not understand the concept of the new government program.

Chemutai said the Emyooga program was established to empower Ugandans with seed capital to fight unemployment. He urged people to steer away from political propaganda.

“Emyooga program targets Ugandans, especially in the informal sector that come together and form savings and credit cooperatives (SACCOs) under 18 Clusters,” he said.

Chemutai said the clusters include; boda-boda riders, taxi drivers, restaurants, welders, market vendors, women entrepreneurs, youth leaders, people with disabilities, journalists, performing artists, carpenters, salon operators, tailors, mechanics, produce dealers, veterans, fishermen and elected leaders.

From the time of its launch in August, 2019 by President Yoweri Museveni, Chemutai noted that about 51 SACCOs including, 33 from Erute North and Erute South constituencies, and 18 in Lira City have already received Shs 30 million each.

Several emyooga beneficiaries who called into the talk show, expressed dissatisfaction with the way the program is handled by the responsible government officials. They said some beneficiaries have either failed to get the funds or get less than expected.

Emmanuel Ogwal, a youth chairperson of Dokolo North Carpenters’ Association, which comprises 30 members, said they were given Shs 30 million but were told to first raise Shs 500 million from other sources before withdrawing the cash.

Lillian Owino, an entrepreneur from Alebtong district, said there are too many fees beneficiaries pay before they finally get the money. She said, however that before she got her money, she was asked whether she supported NRM. When she said yes, her papers were processed.

Denis Okonye from Abim district decried the long process and troubles beneficiaries have to endure including walking for several days to the offices to access the money.

Okonye wondered why government does not use the established structures in different sectors including member-associations like Uganda Manufacturers Association.

In response, Lira district Commercial Officer, Josephine Alobo said they have been gathering people’s views on the rescue funds and are compiling a paper to submit to the Ministry of Finance, Planning and Economic Development for redress.

Alobo said the red-tape is meant to ensure the money is not mismanaged. She however, reminded emyooga beneficiaries to save a lot.

“It’s only a foolish farmer who begins to cook the seed and eat it up, the president has made an initiative to give you the seed and it’s upon you to grow or plant this seed so that you can be able to get many seeds, so that at the end of the day you are socially and economically empowered,” she noted.

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Beneficiaries: Emyooga Cash For SACCOs Too Little

“You find a Sacco with over 500 members in different associations in a constituency getting Shs 30 million, do you expect it to help them out of poverty. I saw some members in my area getting Shs 50,000. How do you move from one step to another with that meager support?” one caller asked.

MASINDI –During an appearance on Kings Radio recently, Moses Kalyegira, the District Commercial Officer of Masindi, said disbursement of emyooga funds in the Western district is almost complete.

Speaking on a talk show program sponsored by The Uhuru Institute for Social Development on April 20, Kalyegira said there are only four savings and credit cooperatives, SACCOs, which haven’t got their money because they have a few issues to resolve.

“We are helping these SACCOs get their money. They have a few challenges but we are helping to resolve them. The money is there on their SACCO accounts. After resolving their issues they will access the money. The other SACCOs have all got their money and they have started using it,” he said.

He also dismissed as false claims that emyooga funds were introduced as bait for votes for President Museveni during the January 14 2021 presidential election. He said the program was introduced before campaigns started.

“This program was introduced to supplement on what people were doing already and also to support other program like the National Agriculture Advisory Services (NAADS), Operation Wealth Creation (OWC) and the Uganda Women Entrepreneurship Program (UWEP) among others,” Kalyegira added.

He also used the radio appearance to clarify that the program never came to kill the traditional SACCOs as many people claim. He said the program is tailored to organize and support people who are organized in one cluster.

According to Kalyegira, Masindi District received Shs 1.6 billion, channeled through 54 SACCOs. The 54 SACCOs were formed in three constituencies; Masindi Municipality, Bujenje County and Buruli.

https://thecooperator.news/nine-saccos-cleared-to-receive-emyooga-funds-in-masindi/

The official disbursement of the funds was launched in March 2021 by Rose Kirabira, the Masindi Resident District Commissioner.

Kalyegira however, said SACCO members need to have saved at least 30 percent of the money they are applying for to access emyooga cash from the bank. He said requirement is a big challenge for most SACCOs.

Pamela Nyakato, the chairperson of Bujenje Constituency Leaders Emyooga SACCO, said the program has created jobs, knowledge and skills sharing since people doing similar things meet and share experiences.

Challenges faced

Nyakato also noted that the program is saddled with many challenges and a lot of sensitization is needed.

“Many people thought this program was a thank you (to them) from the president for mobilizing voter support for him. It’s very hard to remove this thinking from the members but we’re trying hard to do the needful and some members have started understanding it,” she noted.

Nyakato also said most members have a poor saving culture. She said many people save in anticipation of getting emyooga money and once they lay their hands on it, they disappear.

“Many SACCOs are also facing a challenge of unskilled leaders. Many people are illiterate and are running these SACCOs. Proper record keeping is a problem. Even accessing the money from the bank is a problem since many are forced to sign several times. You find their signatures varying,” she said.

“For instance, for a member to get money from the Sacco he or she should have saved at least 30% of the money he or she is applying for but few meet this requirement and yet this is the applicants’ security,” she said.

People’s reaction

Most callers however, expressed dissatisfaction with the program. They said the money is too little to move members to another level.

“You find a SACCO with over 500 members in different associations in a constituency getting Shs 30 million, do you expect it to help them out of poverty. I saw some members in my area getting Shs 50,000. How do you move from one step to another with that meager support?” one caller asked.

Another caller was unhappy with the delayed disbursement of the funds. He said they spent a lot on transport following up on their applications.

“We have been putting in a lot of money following up the matter with the bank and other officials but what we are getting as members is very little compared to what we put in. SACCOs with many associations would have been given more money instead of only Shs. 30 million per Sacco,” he said.

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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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