Lira Municipality Carpenters’ Emyooga SACCO launches timber business to boost capital base
The Shs 20 million business located in Railways A Cell in Lira City East Division began in September 2023.
Lira City, June 23, 2024 Members of Lira Municipality Carpenters’ Emyooga SACCO in Lira City have established a joint timber business, saying focusing on loan provision alone is not enough to boost its capital base.
The Shs 20 million business located in Railways A Cell in Lira City East Division began in September 2023.
Maxwell Adoko Aman, Chairperson of the SACCO explained that they also decided to launch the timber business due to the operating costs that were skyrocketing, such as rent.
“When we sat a board, we realised that the loan products we were giving was generating for us very small income, and most of the income that was generated from the loans was being swallowed up by the operational costs. So in an attempt to diversify our income streams, we opened up a timber store to sell timber,” Adoko noted.
Adoko further explained that increasing the interest rate from 0.1 percent to 1 percent brought in some more money to the SACCO, and boosted the timber business.
“We presented a policy proposal to our board that at least we move from 0.1 percent to 1 percent so that the SACCO may start realising something from the loan, and this made our members proud and I believe it’s the reason we were able to start up a joint timber business,” said Adoko.
“We have invested Shs 20 million and, so far the profit which we have realised a profit of Shs 1,091,467 million within the few months but the rent is high but we must pay our brokers, those who load grade, load, and rearrange the timbers after transactions,” he noted.
Solomon Oboga, Manager of Garden of Sofa located along Lira-Kampala road. Oboga said he always buys timber from the SACCO because it is of good quality.
Henry Opio, Relationship Officer at Microfinance Support Centre who doubles as the Emyooga Focal Point Person for Lango and Acholi Subregion expressed that a joint business for a SACCO is a good idea.
Opio however called upon the SACCO leaders to manage the business well through daily supervision, and record keeping. “A joint business for the SACCO is good, the only challenge is managing, so we call upon Lira Municipality Emyooga SACCO to manage that business well,” said Opio.
In the same vein, Richard Okello Odyek, Lira City Commercial Officer said that having a joint business for a SACCO is key for its development, but also members share the dividends .
“I didn’t know the SACCO has a joint timber business. If they do have, then that’s even much better since the members will share the profits,” said Okello.
At the moment, Lira Municipality Carpenters’ Emyooga SACCO currently has a total of 154 members from seven associations which include; Te-obia Parish Carpenters’ Association, Bar-ogole parish Carpenters’ Association, Ipito Aweno- Ipito Gweno Carpenters’ Association, Lango Central Carpenters’ Association, and Railways Quarters A-Carpenters’ Association, Bazaar East Carpenters’ Association.
The ultimate objective of the Emyooga Programme is to facilitate the socio-economic transformation of households from subsistence to the money economy and market-oriented production. Other objectives include increase in employment opportunities.
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