MBARARA– As Uganda joins the rest of the countries to celebrate the International Day of Cooperative, State Minister for Cooperatives- Fredrick Ngobi Gume has encouraged co-operators in the country to save if they are to increase their capital base.
The minister made the call on Friday during a National Cooperative Symposium co-hosted by Ankole Coffee producers Union [ACPCU] and Muhame Financial Services Cooperative Society Limited at Lake View Hotel in Mbarara City.
The symposium attracted institutions like; the Uhuru Institute for Social Development [TUI], Uganda Cooperative Alliance [UCA], as well as cooperative unions as like Bugisu Co-operative Union.
Powerful SACCOs like Wazalendo SACCO of the Uganda People’s Defence Forces [UPDF], and representatives of commercial banks like Stanbic Bank Uganda gathered to forge a way forward for the cooperative movement in Uganda.
While delivering his speech, minister Ngobi argued that savings will enable cooperatives to compete favourably with commercial banks in offering low interest rates to the members.
“Some people, because of poverty, when they get Shs 1,000 they have to spend it all, thinking they will get another one. This must change. Let’s tell our people that it is important to save,” he said, adding, “Look at Wazelendo SACCO. Do you know how many billions they have?”
“Also take Mwalimu SACCO for example. If the teachers in this country decide to save Shs 10,000 every term, you would see how powerful they become.”
The minister urged SACCOs to give loans at a low interest rate such that they compete with our commercial banks that offer their loans at higher interest rates. “If they [commercial banks] give their loan at an interest rate of 9 percent per annum, for us [SACCOs] we can give ours at 6 percent and this is the liberalisation that we want.”
The minister said for the last six years, the cooperative sector has increased from 6,500-35,000 cooperatives in Uganda covering about 12 million people.
However, he challenged the co-operators to reduce the internal disputes in order to consistently grow their financial institutions.
“Remove conflicts from cooperatives. Co-operators are democratic, member-owned and decisions are taken by members. If you are given an opportunity to manage, don’t start misbehaving. Cooperatives don’t have a yardstick in religion, tribe and sex [gender],” the minister said.
He also appealed to parliamentarians to lead the campaign of supporting the cooperative movement in Uganda.
“Some parliamentarians are now at the helm of leading the unions and cooperatives so we expect a lot of support from them.”
On his part Hon Francis Mwebesa, Minister for Cooperatives said the empowered cooperative movement in Uganda will address some of the challenges like the low milk prices in the cattle corridor.
“People are clamouring for the comeback of cooperatives and we need to get formalisation to sort the problem of milk prices,” Mwebesa said.
Ivan Asiimwe, General Secretary of Uganda Cooperative Alliance 9UCA) challenged the government to upgrade and support the cooperative colleges in Uganda, adding that countries like Kenya, Tanzania, Canada and Brazil have had cooperatives support their economies.
“Go to Kenya. 65 percent of Kenyans derive their livelihoods from cooperatives but what is the percentage in Uganda here? Where is the mismatch? You go to Canada over 18 mln people are members of cooperatives and employ 165000 of people look at the cooperative movement in Kenya,” he said.
Uganda join the rest of the world on July 2, 2022, at Sheema Stadium, Kabwohe Municipality in Sheema district, to celebrate the 100th International Day of Cooperatives. A decade on from the UN International Year of Cooperatives, which showcased the unique contribution of cooperatives to making the world a better place.
This year’s Coops’ Day slogan—“Cooperatives Build a Better World”— echoes the theme of the International Year.
In Uganda, the Day is co-hosted by ACPCU and Muhame Financial Services Cooperative Society Limited, according to the registrar of cooperatives.
Buy your copy of thecooperator magazine from one of our country- wide vending points or an e-copy on emag.thecooperator.news
Views: 3
