Emyooga SACCO leaders in Rwampara decry challenges in business operations

RWAMPALA, September 18, 2024 – Leaders of Emyooga SACCOs in Rwampara district have expressed concerns about the difficulties they face in loan disbursement, particularly with some members reluctant to repay borrowed funds.

This was highlighted during an oversight visit by Members of Parliament on the Committee of Finance, Planning, and Economic Development to assess the Emyooga programme’s performance in the district.

The MPs, led by Rwampara County MP Amos Akankunda, aimed to evaluate the initiative, which supports various groups, including mechanics, plumbers, salonists, boda boda riders, traders, taxi drivers, and restaurant owners.

Launched in August 2019 as a presidential initiative, Emyooga seeks to transition 68 percent of households from subsistence to market-oriented production, with the goal of promoting job creation and improving household incomes.

According to Gloria Namumpa, Chairperson of the Rwampara Entrepreneurs SACCO, the group received Shs 60 million from the Microfinance Support Centre [MSC] in 2019 to serve 45 groups, which has now expanded to 65. “We initially expected Shs 30mln but received Shs 60mln, enabling our groups to invest in various projects like piggery, poultry, and bricklaying,” noted Namumpa.

She noted that in 2022, they pooled resources to establish a bakery, which has grown from producing 5 loaves of bread to 1,000 loaves and 500 buns daily. “Through Emyooga, less-educated women in Rwampara have created job opportunities for around 12 youths,” she added.

Hilary Nshabomwe, the SACCO General Manager, reported that the group’s share capital has grown from Shs 2.5 million to Shs 4.1 million over five years, with total savings at Shs 48 million. As of August 31, 2024, the SACCO had a loan portfolio of Shs 107 million, with a cumulative disbursement of Shs 495 million.

Challenges

Despite this growth, Namumpa raised concerns about high operational costs, including transportation for their products and rental fees for their office space. “We pay Shs 150,000 per month in rent, which significantly impacts our savings. We urge the government to assist Emyooga SACCOs with transportation and office facilities,” she said.

Rev. William Bamutonda, Chairman of Rwampara East Producers SACCO, mentioned external pressures discouraging members from repaying loans. “We have received Shs 50 million, but discouragement has led to a loss of Shs 14.5 million due to defaults,” he reported.

Steven Mbareba Salongo, Chairman of Rwampara East PWDs SACCO, indicated that some members view the Emyooga funds as a political token rather than a loan. “If this perception continues, the program could fail like others aimed at reducing poverty,” he cautioned.

Mbareba also requested the government to provide computers and IT resources to facilitate better record-keeping within Emyooga groups and called for training in financial management for SACCO leaders.

on his part, Joseph Tukamushaba, Coordinator at the MSC Secretariat, noted the introduction of exchange visits for SACCOs to learn from one another about governance and management. “We aim to empower Ugandans economically and socially through these initiatives as SACCOs learn from each other,” he stated.

MPs respond

MP Akankunda, Chairperson of the Finance Committee, urged Emyooga SACCOs to invest in purchasing land for their offices to mitigate high rental costs. “Once you acquire land, we as MPs will support the construction of your offices,” he said.

Atima Jackson Lee, MP for Arua Central Division, advised SACCOs to prioritise projects that generate quick returns over investing in land and buildings. “Focus on earning money through projects that will yield quick returns in the future,” he said.

https://thecooperator.news/emyooga-programme-has-helped-to-reduce-crime-tororo-leaders/

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