Agro-input Dealers Tap Into SMS Marketing

LIRA – Agriculture is among the most hit sectors since Covid-19 emerged two years ago. President Yoweri Kaguta Museveni recently announced a lockdown as a mitigating factor to curb the spread of the deadly virus with the country enduring wave after wave.

The second lockdown announced in June for 42 days came to an end this weekend. Since the pronouncement by President Museveni, like other sectors, farmers are stuck with their products.

The suspension of public transport, especially buses, had curtailed the movement of farmers from district to district. Ronald Odongo, a farmer used to enjoy the inter-district market.

For example, a dairy farmer from Kwania would sell their milk in major towns including Lira, Apac and Dokolo among others and earn more. Though it is still possible, the amount of milk such a farmer will sell today has reduced majorly because their market is under lockdown.

Every bad situation creates opportunities; Peter Odongo is among the latter, he is an agro input retail dealer based in Kwania district, who deals in seeds for vegetables and cereals, plus fertilizers, pesticides and fungicides and other agro-chemicals.

Odongo gives advice to clients on the best way to use the products for better yields. To reach the customers and to alert his 143 regular clients, when the new stock arrives, he sends them phone messages (SMS).

“I am using an SMS marketing strategy and this is all about marketing genuine products to customers as well as help them know where to get the stock and at what price,” he said.

“From between Shs 70,000 to shs 100,000 shillings profit I used to make on a daily basis, the SMS strategy has boosted my profit to about shs 200,000 from the stock I sell,” he adds.

Another input dealer Joyce Aceng not only sells her products through the texts sent to customers but also sends them appreciations or reminders. She uses MTN Pakapaka to send messages.

She noted that when she started using SMS marketing, her sales improved by 50%.

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“When I started the business three years ago, I would not sell even 10 bags of fertilizers, for instance, in a season yet they were the most wanted by farmers. After adopting SMS marketing, my sales improved and I now sell more than 30 bags in a day,” she reveals.

“I not only use SMS but also advertise on radio because some farmers have no mobile phones but have radios. This has also increased the customer base. ” she added, saying she started with a capital of Shs1.5m and raised it to Shs 6m. Currently, she values the business at shs 30m inclusive of expenses.

The net profits have increased from shs 1m to shs 3m. If business goes well, in the next five years, Aceng expects the net profit to hit shs10m.

Johnson Ojok Ocen, the district Production and Marketing Officer Kwania, also an agronomist explains that:

“Instead of standing behind counters waiting for customers, the dealers actively engage in marketing and promotion by using SMS or radios in order to sell the products to farmers and that is a very good idea that others should borrow,” he said in a phone interview.

Kwania District Commercial Officer, Patrick Bura says; “We know that SMS is a powerful tool that is used by almost everyone but agricultural input businesses were not taking advantage of it. I want to encourage agro-inputs dealers to use SMS for marketing,” he notes.

Selling farm inputs, is a growing business that an increasing number of people in Uganda are engaged in. But it is also a business known to have counterfeits and unscrupulous traders, though there are also several traders who strictly deal in genuine products.

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Amolatar returns Shs 2.3 billion to treasury, draws mix reactions

AMOLATAR – Residents in Amolatar district have had mixed reactions to the failure by the Amolatar district local government to use Shs 2.3 billion in the financial year 2020/2021.

Public Finance Management Act 2015 Section 17 (2) stipulates that a local government vote that does not spend money that was appropriated to the vote for the financial year shall at the close of the financial year, repay the money to the Consolidated Fund.

Amolatar returned Shs 2.3 billion, part of Shs 1.2 billion meant for construction projects at Biko Health Center III in Namasale Town Council and Awonangiro Health Center III in Agikdak Sub County.

Part of the money was meant for salaries of secondary school teachers that were not recruited and other civil servants whose recruitment had issues delaying their appointment letter issuance.

Meanwhile, Shs 300 million was meant for construction works at Ryan Seed Sec School in Etam Town Council.

Henry Ddamba, the Amolatar Chief Administrative Officer [CAO] confirmed returning the fund to the consolidated fund, attributing it to delays in the procurement process and late release of funds by the central government.

“As a district, we returned to the treasury a total of Shs 2.3 billion and that is not a good statistic because these funds are supposed to be given to us to spend but we were not able to spend, and the challenge has been a delay in procurement,” he said.

Returning the fund to the consolidated fund has drawn mixed reactions. Nelson Kinyera, a resident of Nalibwoyo village in Namasale Sub County, expressed disappointment upon returning the fund.

Kinyera noted that a number of health facilities are operating on rundown structures at the expense of incompetent leaders who can not utilize government money within the given time frame.

“It’s not the first time Amolatar is returning money to the treasury, this is the third time in a row that we are seeing money being returned to the consolidated fund at the expense of the service delivery gaps in the community,” he noted.

Another resident Mariam Yusufu of Apalipe cell in Amolatar town council blames the failure to use the fund to `kickback’ demands from contractors by the procurement teams.

She says cases of child maternal deaths are surging in the community and urged the district leaders to take steps to end this trend.

Interviewed by theCooperator on Thursday, Amolatar District Chairman Geoffrey Ocen, lashed out at the contractor that was given the contract to rehabilitate health facilities for being incompetent.

“The problem is that the contractor awarded the project is undertaking quite a number of projects that overwhelms his efforts; I will ensure the same scenario doesn’t repeat itself for effective service delivery,” he said in an interview.

End.

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Police Collects 10m From Motorists In Lango

LIRA – Police in the North Kyoga region has collected Shs 10,880,000 from motorists defying the Covid-19 Standard Operating Procedures (SOPs) in Lango sub-region in one month.

The money has been collected through fines from Boda-boda riders and drivers caught operating beyond curfew hours as well as those found carrying passengers.

This money was collected from the four districts of Otuke where 32 motorists were arrested and charged; Oyam where 43 motorists and 13 drivers were nabbed; in Dokolo district, police impounded 24 motorcycles and Lira where 23 drivers and 48 motorcycles were impounded.

All the money is said to have been deposited in the government account.

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Patrick Jimmy Okema, the North Kyoga police spokesperson says the Boda-boda riders and some people with private cars have continued to defy the guidelines which exposes everyone to risk.

Okema also acknowledged the possibility of extortion by some police officers executing these guidelines but said no victims have made any formal complaints, something he says is affecting the fight against corruption.

“If only a member of the public could help us cite one or two officers so that they can serve as an example to the others. But unfortunately, these are just rumors within the community and do not come directly to the police. If only they could do that, we would be able to deal with such things.”

However, Newton Ocen, a Boda-boda rider, says the need to provide for their families as well as meet their other needs has forced them to breach the presidential directives. Ocen, who used to make between Shs 30,000 to Shs 40,000 is now making a maximum of Shs 10,000 a day.

Jimmy Ocen, another rider in Lira said he has resorted to selling his belongings to service a loan he took to acquire a motorcycle.

On June 18th 2021, President Yoweri Museveni issued guidelines to curb the spread of Covid-19. Among these was observance of curfew starting 7:00pm, restriction of PSV and private cars while Boda-bodas were limited to carrying only cargo from 6:30am to 5pm.

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Financial Inclusion Key For Resilience – Bankers Conference 2021

UGANDA – Uganda Bankers Association (UBA) has been challenged to come together to drive financial inclusion as well as increase provision of financial services.

This was during the virtual Annual Bankers Conference (ABC), a signature industry event that brings together regulators, practitioners and various industry experts involved in delivering financial (banking services) from domestic, regional, national and international spheres; to discuss trending issues, drivers and dynamics that are increasingly shaping sustainability strategies in banking, finance and the overall development ecosystem.

The conference which was themed, “Bend but do not break” was aimed at finding ways in which the financial sector can thrive in the era of the 4th Industrial Revolution.

The conference was organized by UBA and sponsored by MasterCard, Raxio Data Center, FINCA, Experian, Stanbic Bank, Financial Sector Deepening Uganda, and KCB Bank.

Speaking during the conference, Joseph Lutwama, the Director in charge of programs Financial Sector Deepening (FSD) said that, there is a need for stakeholders to work with the government to create opportunities for economic empowerment.

“It is good that we have made strides in deepening financial access for those already using financial services; but for those who are still excluded, I think it is important that as stakeholders working with the government, we create opportunities for economic empowerment. Until we create those opportunities for economic empowerment, financial services and financial inclusion will continue to be a dream for many of those who are at the bottom of the pyramid,” Lutwama said.

“This will take collective efforts by not only the government and other private players but also financial institutions which still have a role to play in driving innovation and driving that economic activity that ultimately will benefit the financial services as more people are able to earn and own assets which they can insure and generate income,” he said, adding that multiplier effect only happens when they work together collectively to be able to drive financial inclusion as well as deepen financial markets.

Lutwama further advised, UBA to think of having what he termed as solid legal systems urging that this will help them to do business sustainably.

“Everything rises and falls with trust and there is no better place to build trust in the financial system than having a solid legal system; and more particularly a system which has a culture of enforcement of contracts. Financial services or any economic activity is driven by contracts whether written or unwritten; what will build trust is our ability to meet our end of the bargain of the contract. In a country where it is very difficult to get justice or where justice is always delayed, it will be difficult for people to trust and enter into contracts more so in the digital era where the person you are getting into a contract with is not seen. In the digital banks where a transaction is completed under a minute, and you don’t know whom you are transacting with, in the event that you have an issue, how are you compensated? So, in an environment where it is not clear, how you can be compensated, it will be very difficult for us to trust people and engage in financial services,” said Lutwama.

Lutwama further submitted that, “we will need to rethink the financial sector regulatory system; currently we have diverse regulators, Bank of Uganda, Capital Markets Authority, UMRA, National Payment System; there are many regulators, the financial system is becoming grey and it is very difficult to know where banking stops, where payments begin and where investment starts or retirement benefits start or stop, in such an era, it then becomes very important that we also need to break barriers between regulators and adopt systems that are more inclusive and impressive so that they become easier for some to innovate and even the regulators to ably protect the consumers.”

James Byaruhanga, the General Manager at Raxio Data Center called on financial banking institutions to embrace integration of the banking services to be able to tap into the global market.

“So you need to think about global payment platforms, for example MasterCard which will help to improve on service delivery in financial service sectors, so there is a need for integration; and integration becomes very critical because every single player can transact from one platform to another, the internet becomes a market place. So I think it’s time to think about adopting the internet as a market place,” said Byaruhanga.

Speaking at the same meeting, Mathias Katamba, the Chairperson UBA said that the banking sector has become versatile in this period of the Covid-19 pandemic adding that the sector needs to think beyond the impact of the pandemic.

“We do not only have to focus on how the sector has been affected, we should focus on what we can learn from these times and put the lessons into actions,” he advised.

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North Kyoga Police warns against new SACCO scam

Police in North Kyoga Region has cautioned the public about a recent scam that specifically targets SACCOs and warned people against giving their money to individuals they do not know personally if they are to avoid falling prey to such fraudsters.

“Across our region, a number of vulnerable individuals and some SACCO members have sadly fallen victim to a complex scam known as ‘Courier Fraud’,” North Kyoga Regional Police Commander, Paul Nkore, said in an interview.

Nkore said that despite efforts to crack down on the cruel fraud that mainly targets SACCOs and strips members of their savings, the number of perpetrators is on the increase in the region.

“We have received a number of reports that SACCOs across the region have been targeted by fraudsters purporting to be State House officials. A total of 32 people have been arrested in connection with the alleged acts of fraud, and investigations remain ongoing,” he said.

Last week, police in Otuke district apprehended four suspected fraudsters for allegedly defrauding members of Otuke United district SACCO.

The four, led by one Monica Adongo according to reports, were moving with a letter purportedly from State House allowing them to operate as a SACCO.

The others are Robinah Akello, a resident of Aloi Sub County; Geoffrey Ap3ello of the same area and Richard Ojok of Adwari Corner, who also allegedly claimed to be the SACCO Coordinator for Otuke.

Busted

Christopher Omara, the Otuke Resident District Commissioner, told theCooperator that he received an invitation letter signed by Adongo to attend a meeting but upon consultation, he realized that the SACCO does not exist in the area.

Omara says that the four, who claim to be operating in the districts of Dokolo, Apac, Kwania, Oyam, Moroto, Kotido, and Gulu City, were also collecting Shs 10, 000 Shillings from the SACCO members.

They also claimed to have an office in Kampala at Mapeera House, but upon interrogation, were found fraudsters, the RDC revealed.

“That means the Cooperatives are at risk of fraud. We urge SACCO members not to contribute any money to any individual or organization that they are not sure is genuine,” he appealed.

In December last year, security personnel in Kwania district arrested eight suspected fraudsters for extorting Shs 42.5m from Ikwera SACCO members under the guise of offering them juicy jobs.

Caution

Edith Basalirwa, the Kwania District Police Commander (DPC), asked the public to always report unscrupulous characters to the authorities immediately.

“Please help us to reinforce the message that police officers or your bank will never ask you to hand over money or transfer funds. If you receive a call like this, do not interact – hang up and report it immediately,” Basalirwa said.

North Kyoga RPC, Nkore, reaffirmed the police’s commitment to dismantle the scam network by recruiting members of the community to be its eyes and ears on the ground.

“SACCO members and other members of the public can also seek guidance from the District Commercial Officers and the offices of the Resident District Commissioners before transacting in any business. This will save them from being taken advantage of by fraudsters,” he said.

According to the 2019 Annual Police Crime Report, North Kyoga registered the highest number of fraud cases in the country in 2019.

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SACCOs urged to embrace tech, digital lending

Savings and Credit Cooperative Societies (SACCOs) have been urged to embrace the latest technological innovations in order to catch up with market trends and safeguard their market share.

Speaking during a one-week training of Ikwera SACCO Members, held in Aduku town council, Kwania district, the former Land Minister Daniel Omara Atubu rallied the SACCO Members to join the digital lending space, especially with the coming of mobile money.

“Technology is reshaping the financial industry forcing SACCOs to match up with the trend or risk being left out. Let’s utilize mobile money for conducting business and embrace digital loans to provide quick cash to members through mobile money wallets. Entry into digital loan platforms will safeguard the market flooded by independent digital lenders such as Commercial banks,” Omara, an Economist, noted.

Geoffrey Okello, a senior accountant at the Uganda College of Commerce, Aduku, underscored the security that digital transactions offer.

“It would protect you from the danger of being targeted by thugs after withdrawing your money from the bank,” he said.

For his part, Kwania District Commercial Officer, Patrick Bura, urged the SACCO members to appoint knowledgeable leaders who can guide them on how to make the best use of their resources.

Ikwera SACCO Ltd Manager, Robert Odur, said plans are underway to integrate the SACCO members into available digital platforms, noting that it would be one way to extend financial inclusion to the unbanked.

“We need innovative ways to bring the unbanked population into the formal financial system,” Odur said.

Ikwera SACCO Ltd., established in 2009 is fully registered with the Ministry of Trade Industry and Cooperatives. However, despite having 1,037 members and growing, and a current portfolio of over Shs 300m, the SACCO is as yet not enrolled on the Mobile money system.

The Uganda Finscope survey for 2018- a periodic study of the country’s financial sector since 2006-indicates a sharp increase in the number of Ugandans who use financial services.

The total value of mobile money transactions grew from Shs 37.4 tn ($9.7 bn) in June 2016 to Shs 79.8 tn (USD 20.7 bn) in FY 2019/2020, according to Bank of Uganda data.

The survey also found that 50 percent of savers, which works out to five million adults, save informally with village savings and credit associations and trusted community members.

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Microfinance minister to promote Emyooga products

The Minister of State for Micro-Finance & Small Enterprises, Hon. Haruna Kasolo Kyeyune has pledged to create a department within the Microfinance Support Centre to expand the market base for products produced under the Emyooga scheme.

Kasolo made the pledge last Friday while visiting Emyooga SACCOs in Mbarara after Immaculate Tumuhimbise, the Chairperson of Mbarara City South Women Entrepreneurs’ SACCO raised concerns over potential overproduction by Emyooga enterprises with no ready market for their products.

“People should not produce and fail to find a market. I will propose to the cabinet that funds be set aside to help in marketing and research for Emyooga products,” the minister promised.

He encouraged the entrepreneurs to be innovative and to produce attractive products that will be competitive in the international market.

“I implore Emyooga members to be innovative and creative such that when you make a product, say a bag, it is as good in quality as those made from established markets like China.”

He also cautioned prudence in managing their capital resources.

“You are not supposed to overspend; create cheap capital within the informal sector because you may find it difficult to access credit from commercial banks,” Kasolo advised.

Robert Mpakibi, the Assistant Registrar of co-operatives confirmed that 32 out of 36 registered Emyooga SACCOs in the district have already accessed money under the initiative.

Impressive savings

Meanwhile, Phiona Aheebwa, the Front Desk Officer at the Microfinance Support Centre Ltd (MSC) was impressed by the saving culture demonstrated by Mbarara City South Women Entrepreneurs SACCO.

The 202-member SACCO has already saved Shs 38m since November 18, last year, bringing its total capital to Shs 68m after adding the Shs 30m Emyooga cash from MSC, revealed SACCO Chairperson, Tumuhimbise.

Aheebwa appealed to members to maintain the savings culture and promised that if they are consistent, they could benefit from a bigger loan facility from the MSC in the future.

“If members keep taking and paying their loans well, as MSC we shall make sure that we add more money in the project at a small interest rate, depending on the performance,” she said.

Aheebwa recommended that Mbarara City South Women Entrepreneurs SACCO apply for more money from MSC should the need arise.

“If you need more money, whether it’s 100m or 300m, I will recommend that you receive it from the Microfinance Support Centre. What matters is the members to grow but not for the SACCO to build magnificent buildings,” says Aheebwa

She encouraged the Commercial Officers to continue training Emyooga members for the program to benefit the entire country.

Mbarara district, comprising of Kashari North and South, received a total of Shs 1.12 bn to cater for 36 SACCOs at constituency level, while Mbarara City received Shs 1 bn also for 36 SACCOs.

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Kabarole: Kitojo Care SACCO holds first AGM after COVID-19 setback

Kitojo Care SACCO in Kabarole district has held its Annual General Meeting (AGM) this week, after missing out on holding one in 2020.

While cooperatives are required by law to hold an AGM every year, Kitojo Care SACCO, like many others countrywide, was unable to fulfill this obligation last year due to the COVID-19 pandemic that resulted in a temporary suspension of all manner of public gatherings.

Moreover, the SACCO saw its savings and loan portfolios take a hit as most of its members were constrained in conducting their business as a result of restrictions imposed by the government to limit the spread of the pandemic.

“Last year was a very hard one; the majority of our members are Boda Boda riders and others work at tour sites which were not working during the lockdown, so most of the businesses were on standstill. This affected our savings, loan repayment, and loan portfolio,” said Fortunate Kusemererwa, the SACCO’s Manager.

Consequently, he revealed, by year’s end the loan repayment rate had dropped from 92 to 85 percent, and the loan portfolio reduced from Shs 634m to Shs 464m

Kusemererwa said that Kitojo Care SACCO, which was started in 2007 with the aim of increasing members’ household incomes and improve on their saving culture, has since last year been faced by the challenge of the majority of its members being dormant, “to the extent that they cannot even afford to save Shs 10,000 per month.”

Taking a toll

The slowdown in the SACCO’s momentum has taken its toll on some of the developmental projects that it had recently undertaken.

For instance, Kusemererwa disclosed that the SACCO had in 2019 embarked on a project to construct its own office premises after squatting for several years at those of Kitojo Integrated Development Association (KIDA), its mother organization.

“KIDA has been hosting us for all these years, but in 2019, we decided to start constructing our own offices because members have since increased and cannot fit in the little space we are currently occupying,” he said.

However, due to the financial difficulties from the last year, they have not been able to continue with construction works.

“We had hoped to complete our office last year, but due to the lockdown, we had to halt it. Savings have drastically reduced, loan recovery is still poor and our members no longer take loans,” he explained.

AGM resolutions

Kusemererwa said this year’s AGM resolved that each member should contribute Shs 1,500 per month towards the completion of their office block, which he believes is the only option that will save them.

The Kabarole District Commercial Officer (DCO), John Kabango, who attended the AGM, advised members to reacquaint themselves with the reasons why they joined cooperatives in the first place so that they can enjoy the most benefits from them.

“Some people just join SACCOs to borrow money and run away without paying back. You need to know that these SACCOs are voluntary and are meant to help people improve their standard of living,” Kabango said.

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