KAMPALA, January 28, 2025 – The Bank of Uganda [BoU] has granted a licence to EBO Cooperative Savings and Credit Society Limited, located in Bwizibwera Rutooma Town Council, Mbarara district. This licence allows the SACCO to operate as a Micro-Finance Deposit-Taking Institution [MDI], joining a select group of such institutions in the country.
“Pursuant to Regulation 8 of the Micro-Finance Deposit-Taking Institutions [Registered Societies] Regulations 2023, the Bank of Uganda hereby informs the public that EBO Cooperative Savings and Credit Society Limited has fulfilled the necessary requirements for licensing. Accordingly, the Registered Society is now under the supervision and regulation of the Central Bank,” the BoU said in a notice published in a local newspaper on January 28, 2025.
EBO SACCO applied to be supervised and regulated by the Central Bank last year. The SACCO published a notice on 28 May 2024 in national newspapers, in accordance with the legal requirements.
According to BoU, the application for a licence to become an MDI is accompanied by several key documents, including a copy of the certificate of registration issued under the Cooperative Societies Act; proof that the registered society’s institutional capital exceeds 500 million shillings; evidence that the voluntary savings of the society are over 1.5 billion shillings; and details of the business location, including the head office and, where applicable, any branch offices.
BoU further noted that there are around 42 SACCOs whose savings have reached the 1.5 billion shillings threshold, making them eligible candidates for supervision and regulation by the Central Bank.
However, some SACCO leaders have raised concerns about the BoU’s move to supervise and regulate SACCOs, arguing that the unique business model of SACCOs should not be interfered with.
Among the country’s largest SACCOs are Shuuku SACCO in Sheema District, CBS PEWOSA in the central region, Wazalendo SACCO for the Uganda People’s Defence Forces (UPDF), and Uganda Parliamentary SACCO, among others.
Currently, Uganda has three other licensed MDIs recognised by the BoU: FINCA Uganda Limited [MDI], PRIDE Microfinance Limited [MDI], and UGAFODE Microfinance Limited [MDI], EFC Uganda Limited having had its licence revoked by BoU in January 2024 due to undercapitalisation and poor corporate governance.
Founder over 29 years ago, With 13 branches, EBO SACCO serves over 90,000 customers. It provides school fees loans, biogas loans, and banana improvement loans among others.
https://thecooperator.news/ebo-sacco-in-final-touches-to-transform-into-mdi/
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