Ankole Emyooga SACCOs recapitalised with Shs 5.8bln
The funds were handed over on Friday during a regional exhibition in Mbarara City, where Emyooga SACCOs showcased their progress and achievements
MBARARA CITY, November 18, 2024 – A total of 270 Emyooga Savings and Credit Cooperative Organisations [SACCOs] across the 13 districts of Ankole Sub-region have received a boost of Shs 5.8 billion from the Microfinance Support Centre [MSC] to enhance their income-generating activities.
The funds were handed over on Friday during a regional exhibition in Mbarara City, where Emyooga SACCOs showcased their progress and achievements.
In his address, Haruna Kyeyune Kasolo, the State Minister for Microfinance, explained that the Shs 5.8bln is an addition to the Shs 30mln each Emyooga SACCO received in August 2019, under the government’s initiative to shift 68 percent of Ugandan homesteads from subsistence farming to market-oriented production.
“This funding is aimed at boosting the capacity of SACCOs in various sectors, including journalists, welders, carpenters, salon operators, veterans, fishermen, produce dealers, taxi operators, and market vendors. Each SACCO will receive an additional Shs 20mln to support their members,” Kasolo said.
He commended the performance of the Emyooga SACCOs, noting that they have contributed significantly to improving the livelihoods of their members. The minister reiterated the government’s commitment to supporting the creation of jobs and wealth across the country.
While touring the exhibition stalls, Minister Kasolo urged exhibitors to maintain a strong culture of saving, emphasizing that consistent saving is essential for long-term economic resilience.
“The President has instructed me to continue supporting Emyooga SACCOs. Every SACCO will be entitled to receive Shs 20mln in seed capital annually. Whether a SACCO has defaulted or not, all will receive this support because we cannot let the performance of a few defaulters affect those who are doing well,” he stated.
However, Kasolo also directed Resident District Commissioners [RDCs] and local police to take action against individuals who have defaulted on their SACCO repayments, stressing that recovery efforts are necessary to ensure the program benefits everyone in Ankole Sub-region.
Joseph Tukamushaba, the Business Technology Head at the Microfinance Support Centre, called for more focus on training SACCO leaders to effectively manage the resources entrusted to them.
“Funding alone is not enough. SACCOs need targeted initiatives to train their leaders in governance, financial management, and record-keeping. These are critical skills for the successful management of their associations,” Tukamushaba said. He also highlighted the need for product certification by the Uganda National Bureau of Standards [UNBS] for those involved in value-added products such as honey, soap, and bread, to access wider markets.
In response, Robert Rukari, Member of Parliament for Mbarara City North, proposed that the government consider designating a public holiday for Emyooga exhibitions. “A public holiday for Emyooga would not only celebrate the success of the initiative but also provide an opportunity to recognize the best-performing SACCOs and encourage healthy competition,” Rukari suggested.
According to Tukamushaba, Emyooga SACCOs in the Ankole Sub-region have accumulated a share capital of Shs 3.8 billion and total savings of Shs 10bln. Nationwide, the initiative has helped SACCOs mobilize nearly Shs 85.5bln in savings. Out of the Shs 293bln disbursed to members, Shs 102bln has already been recovered.
Launched in August 2019, the Presidential Initiative on Wealth and Job Creation [Emyooga] is part of a broader government strategy to transform Uganda’s economy by shifting subsistence farming towards market-oriented production. The initiative focuses on 18 key enterprise categories, benefiting financially excluded Ugandans engaged in specialized, income-generating activities.
MSC is a government agency responsible for the planning, management, budgeting, reporting and accountability of all funds disbursed under the Emyooga programme. This includes funds disbursements to the groups and training of members and leaders.
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