KAMPALA, November 14, 2024 — The cooperative movement in Uganda stands on the edge of a transformative journey, yet systemic barriers risk leaving rural cooperatives in the past. Recent training sessions on the Coop Profiler software, developed by The Uhuru Institute for Social Development [TUI], which assesses cooperative resilience and performance while providing tools for evaluating operational health and strategic effectiveness, highlight the transformative potential of digital solutions to enhance cooperative efficiency and community engagement.
However, TUI’s travels across Uganda’s sub-regions regions of Bugisu, Sebei, Teso, and Lango reveal significant gaps in technology, digital literacy, and the resources needed to embrace this change. Addressing these barriers requires not just access to digital tools but a cultural and structural shift in how cooperatives operate.
Across these regions mentioned above, cooperatives lack basic digital infrastructure, computers, internet connectivity, and essential data management tools. This digital poverty places cooperatives at a disadvantage, where operations remain paper-based, labor-intensive, and prone to inefficiency. Digital tools and financial systems would undoubtedly streamline operations, yet many cooperatives remain constrained by limited funding and digital skills. For cooperatives to thrive, a coordinated effort from both government and private sector partners is needed to provide affordable access to technology and funding for essential equipment.
The journey to digital transformation isn’t simply about equipment; it’s about empowering cooperative members with digital literacy. Training programs should go beyond basic skills, highlighting the cultural and social benefits of digital tools. Members who understand the value of data management and online communication can use these skills to amplify their impact, both within their cooperatives and in their broader communities. Simple communication platforms like WhatsApp and Telegram are prime examples of low-cost tools that could significantly improve connectivity, member engagement, and real-time information sharing. Programmes that focus on training youth and marginalised members can serve as a foundation for sustainable, digitally literate cooperatives that drive social and economic development.
Every day without digital access means lost opportunities for cooperatives to expand, innovate, and build their market presence. Cooperatives without digital footprints miss the chance to reach new audiences, connect with members online, and attract investors. Visibility on platforms like Google My Business, social media, and dedicated websites could bring cooperatives out of obscurity and into an accessible, competitive marketplace. The cost of inaction here is high, not just for the cooperatives themselves but for the Ugandan economy, which stands to benefit from a more connected and efficient cooperative sector.
For cooperatives to successfully adopt technology, the solutions must fit their local realities. Digital tools that work offline or require minimal connectivity would make adoption feasible for cooperatives in remote areas. Furthermore, language and cultural barriers, particularly in regions like Bugisu, mean that localised training in native languages is essential to building a digitally inclusive environment. Government and tech companies could collaborate to develop tools designed for cooperatives, not urban enterprises, ensuring these tools are accessible and practical.
The government has a unique role in catalysing digital adoption for cooperatives. Supporting affordable internet access, subsidising essential digital tools, and collaborating with cooperative unions to provide training can create a fertile ground for digital transformation. Policymakers should also consider incentives for cooperatives that adopt digital finance and communication systems, as these technologies improve transparency, attract funding, and ultimately drive economic growth.
The enthusiasm for digital finance systems within cooperative societies reveals a desire for transparency, efficiency, and accountability. By investing in digital finance, cooperatives can improve record-keeping, establish a clear financial structure, and foster member trust. This is a critical step toward economic stability, especially as donors and investors increasingly look for organisations that demonstrate transparent financial practices. Digital finance could also drive internal growth, with cooperatives able to streamline their financial systems and focus on member needs.
The digital transformation of Uganda’s cooperatives will not happen overnight. It requires concerted, sustained efforts from cooperative unions, government entities, tech providers, and international partners. A multi-pronged approach, one that prioritises awareness campaigns, affordable tech solutions, digital literacy, and smartphone access – can ensure no cooperative is left behind. By closing the digital divide, Uganda can unlock the potential of cooperatives to serve their members, strengthen local economies, and foster a digitally inclusive society.
The writer is a Senior IT Officer, The Uhuru Institute for Social Development.
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