Bushenyi DCO challenges Ugandan SACCOs to innovate for youth jobs

BUSHENYI, July 24, 2026 — Savings and Credit Cooperative Organisations [SACCOs] in Uganda have been urged to move away from traditional business approaches and embrace research, data-driven planning, and market innovation to address the country’s growing youth unemployment challenge.

The call was made by Bushenyi-Ishaka Municipal Council Principal Commercial Officer, Aggrey Ategyeka, during a recent event where The Cooperator Media Limited, publisher of theCooperator, distributed complimentary copies of various editions of the magazine as part of its Corporate Social Responsibility [CSR] programme.

Ategyeka said that although SACCOs have for decades played a central role in supporting local economies, many have failed to adapt their products and services to changing demographic trends, particularly the needs of Uganda’s growing youth population.

“Many SACCOs such as Butuuro SACCO, Kyamuhunga Peoples SACCO, Jubilee SACCO, Mushanga SACCO, Rukiga SACCO and Millennium 2012, among others, have embraced digital technology and developed tailored products that have contributed to impressive growth. However, they need to work together and become truly research-driven to address a pressing challenge,” he said.

“The products and services offered by most SACCOs are still similar and traditional. The same products that were offered ten years ago remain on the shelves today, while the needs of the population continue to evolve, especially with changing demographic characteristics.”

Ategyeka noted that despite significant growth in Uganda’s cooperative sector—with registered SACCOs increasing from 5,798 in 2015 to more than 31,800 by March 2025—many institutions continue to rely on the same products and services developed decades ago.

“We have seen SACCOs come up with different products and services, but they are still the exact same products offered by neighbouring institutions within a five-kilometre radius,” he said.

“They are providing the same products and services that have been on their shelves for the last 20 years or more. The question we must ask ourselves is: what is the missing link? Market needs are changing rapidly because of shifting demographics, yet our financial products remain frozen in time.”

SACCOs remain a critical pillar of Uganda’s financial system, providing one of the largest sources of local credit, accounting for 16.3 per cent of the country’s total share capital, and serving as a key financial lifeline for nearly 40 per cent of the population.

For rural communities that are often underserved by commercial banks, the presence of SACCOs in many towns and sub-counties, together with government initiatives such as Emyooga and the Parish Development Model [PDM], has expanded access to financial services.

However, Ategyeka warned that this growth risks being undermined if SACCOs fail to deliberately target the country’s largest demographic group, the youth.

Citing findings from the 2024 National Population and Housing Census, he said young people constitute the largest segment of Uganda’s population but also account for the highest proportion of unemployed citizens.

“If you look at demographic surveys and the 2024 population census, you realise that the youth dominate the biggest part of the population,” Ategyeka said.

“But you have to ask yourself: is this demographic reality reflected in the membership and product portfolios of our SACCOs? The urgent question we should be answering is how we are addressing these demographic gaps through tailored financial products.”

He explained that Uganda’s universities and tertiary institutions produce thousands of graduates every year, equipped with new skills and innovative ideas. However, formal employment opportunities can only absorb a small proportion of this workforce, leaving many graduates searching for alternative ways to earn a living.

According to Ategyeka, many young entrepreneurs are constrained by limited access to startup capital and strict collateral requirements demanded by conventional financial institutions.

He argued that SACCOs are uniquely positioned to bridge this gap because they operate within local communities and are closer to ordinary citizens than commercial banks.

Despite this advantage, he said many SACCO loan portfolios remain dominated by older members, with lending products concentrated in traditional areas such as boda-boda financing and basic agricultural loans.

“SACCOs are closer to the people than commercial banks, but despite being closer, you are not addressing their evolving needs,” he said.

“Most SACCOs focus almost exclusively on boda-boda loans and basic agricultural loans. Let us look at agriculture: out of 100 young people, how many will readily embrace traditional agriculture? Out of 100 active farmers, how many are young people? Remember, these are young people who have graduated from universities. We need to design products that allow them to access your services so that they can innovate and create jobs.”

Ategyeka highlighted the strong relationship many Ugandans have with SACCOs, noting that generations of parents have relied on these institutions to finance their children’s education.

He said SACCOs should maintain this relationship by supporting young graduates to establish businesses after completing their studies.

“Look at the cycle: I am a young person; my parents came to your SACCO, borrowed money, and paid my school fees and university tuition for nearly 20 years,” he explained.

“Now that I have graduated, I would expect the institution to remain connected to me. The SACCO should support me as a young graduate to start a business, creating a lifelong financial relationship.”

To achieve this transformation, Ategyeka called on SACCOs to establish business incubation hubs and innovation centres aimed at supporting young entrepreneurs.

He urged SACCOs to engage students before graduation by partnering with universities and higher learning institutions to identify promising ideas, mentor students, and support the development of viable enterprises.

“The SACCO should not just go there to blindly sell a basic savings account,” he said. “They should go there to mentor the ideas and business proposals of young people. Through this mentorship, students will graduate with practical knowledge and skills required to run sustainable enterprises.”

He added that such enterprises would eventually become SACCO clients, creating a sustainable cycle where young people access capital, establish businesses, and contribute to economic growth.

Ategyeka’s call aligns with Uganda’s wider move towards a data-driven economic environment. In November 2025, Uganda hosted its first National Credit Data, Referencing and Innovation Symposium, where the Bank of Uganda confirmed that regulatory reforms had formally integrated SACCOs into the national credit data ecosystem.

The Ministry of Trade, Industry and Cooperatives also signed a Memorandum of Understanding with Innovation Norway to support research and development [R&D] initiatives aimed at digitalising the informal economy and strengthening cooperative societies.

To make research affordable for smaller SACCOs, Ategyeka encouraged institutions to embrace the cooperative principle of cooperation among cooperatives by pooling resources and conducting joint research.

He said SACCOs could form clusters based on location or sector to share research costs and develop products tailored to emerging market needs.

“One of the fundamental principles of cooperatives is cooperation among cooperatives—working together for mutual benefit,” he said.

“An individual SACCO may not be able to raise the entire budget required for extensive market research. However, if three or five SACCOs within the same region come together, they can fund a joint research proposal that benefits all their members.”

Concluding his remarks, Ategyeka warned that SACCOs risked losing their relevance if they failed to attract younger generations.

He said the survival of the cooperative movement depended on embracing innovation, diversification, and deliberate youth inclusion.

“The reality is simple: the older people currently sustaining SACCOs will eventually leave the system. If we do not evolve, diversify, and intentionally bring the youth on board, the long-term sustainability of the SACCO business model in Uganda will be at risk,” he said.

“Investing in research and development is not a luxury; it is a necessity for survival. It is time for SACCOs to embrace a data-driven business environment, utilise the findings of scholars, and collaborate across the movement to serve the changing needs of our communities.”

SACCOs need youth-focused products

Peterson Kazaire, General Manager of Nyakibale Development SACCO in Rukungiri district, acknowledged that while the youth are considered in SACCO programmes, there is a need to develop products specifically designed for them.

“We do support the youth; however, we do not have a specific product for young people. This is something we need to look into in the future,” Kazaire said.

https://thecooperator.news/bunyoro-youth-urged-to-form-saccos-to-enhance-livelihoods/

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