Cooperatives get together to save money, but did you know that more can be done to grow that money from the saved cooperative money? How about putting the money into an investment body?
Kyobe Godfrey Kibuuka, a financial adviser with Uganda Pension Umbrella Fund recommends this move to cooperators, as it also guarantees more returns on their money, in form of interest.
He says this can also avert cases were the chairperson run away with the briefcase of money belonging to group savings.
Stories of saving group’s money being stolen by their leader have in many incidents made the news in the media, calling for an eye-opener among group members and them being keen and vigilant on how their money is being used and stored.
Investing money ensures for the group money safety as well as, enabling the group to do more with their money.
Kyobe says; “Money is not a seed to be put in the ground to germinate. Money grows through investment. ‘’
Investment’s success can be realized at Individual or through group level, were cooperatives fall.
Kyobe appeals to cooperatives to approach investment personnel to offer professional advice on how to go about their savings, so as to get more returns.
With contributions of the members pooled in one fund, Kyobe believes this could save them in cases of mishaps and misfortunes, such as unpredictable changes in market prices, change in customers’ patterns, amongst other unforeseen factors.
He sighted an example of cooperatives that focus on agriculture saying, “During 1st rains, farmers get bumper harvest but as the season changes, things become unpredictable, forcing them to get loans when group savings are insufficient, so through being part of investment clubs, saved funds can rescue them in such cases.”
He now advocating for saving groups to be sensitized about investment to avert low saving levels and consumption driven by debt.