We don’t take bribes to register cooperatives

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

By Egessa Hajusu

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

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

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

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

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

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

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

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

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

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

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

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

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

The post We don’t take bribes to register cooperatives appeared first on The Cooperator News.

Eastern Region elders embrace Sacco’s

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

By Egessa Hajusu

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The post Eastern Region elders embrace Sacco’s appeared first on The Cooperator News.

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

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , /by

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

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

Social media impact

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

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

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

Digital innovations

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

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

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

Digital governance

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

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

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

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

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

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

The post How is Your Co-operative Performing in the Digital World? appeared first on The Cooperator News.

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

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , /by

By James Abola

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

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

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

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

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

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

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

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

Source: Daily Monitor

The post OPINION: Uganda needs more of producer and marketing cooperatives and less of SACCOs appeared first on The Cooperator News.