Dokolo SACCO embarks on weekly savings to boost capital base
DOKOLO, May 28, 2024 – The members of Dokolo North Welders Emyooga SACCO Limited have embarked on weekly savings to increase their capital base, and boost loan transactions.
The SACCO located in Agwata town council in Dokolo district started in 2020 with 45 members and three associations but now has 153 members with nine associations.
According to Bosco Ogwal, the Chairperson of the SACCO, each member can save between Shs 2,000, and Shs 1mln every week.
Ogwal said they learned how to boost their savings during an exchange visit to Kabarole district, organised for them by the Microfinance Support Centre [MSC].
“We started this in July 2023 when we returned from an exchange visit from Kabarole where we found most of those SACCOs doing voluntary savings, it is a thing we used not to do, and at first it was hard where we saved only Shs 1.5mln but now as I talk, we have saved a total of Shs 6mln in April,” Ogwal said.
Ogwal said weekly saving is now a must for the members of the SACCO, saying it has increased their capital base hence easing loan transactions.
“The seed capital used not to be enough for us when we wanted to borrow but now if a member needs a loan, it is given to him immediately because there is cashflow, and SACCO members can take loans anytime they want to,” Ogwal said.
However, he said saving by the members has reduced because of the reduction in the household incomes mainly earned from farming and members have not yet harvested.
“Some of the SACCO members are unable to save since the household income of our members comes from the sale of agricultural produce, yet they have not harvested,” he said.
Meanwhile, Henry Obua, one of the members of Amuda Parish Welders’ Association said the weekly saving has boosted the loan base of the SACCO, easing the provision of loans to the members.
“When we had not started the weekly saving, it was hard for us to get the loans we wanted but now it is very easy for us to get the loans and this has given us morale to save the more,” he said.
Henry Opio, the Relationship Officer at MSC Regional Office who doubles as the Focal Point Person for Emyooga Programme in the Lango and Acholi sub-regions said the SACCO is one of the best performing SACCOs in Lango Sub-region.
Opio said that saving and buying shares is a good deal for the SACCOs to grow faster.
“Dokolo North Welders are doing so well in terms of savings, most of SACCOS are doing compulsory saving but Dokolo Welders are doing voluntary saving, I can see they so far have Shs 27mln out of voluntary saving. They have also just started the concept of buying shares, which is a good initiative,” said Opio.
However, Opio said most of the SACCO members in Lango, and Acholi sub-regions are not saving to the poor mindset.
“The problem with some of the SACCO members is that they have not embraced the programme to be their own, they still take it as a programme belonging to the government. We call upon SACCO members to embrace savings so that they can boost their capital base because the money from government is not enough since it is seed capital,” said Opio.
Meanwhile, Patrick Alenyo, the Dokolo District Commercial Officer applauded the initiatives that the Dokolo North Welders Emyooga SACCO Limited has launched, adding that its leadership is performing well.
“It so happened that Dokolo North Welders’ SACCO is doing so well, they were given Shs 30mln and they used it very well. Last year, government gave them additional seed capital of Shs 20mln. Their funds recovery is at 95 percent due to good governance,” said Alenyo.
The associations that the SACCO has so far registered are; Amuda Parish Welders’ Association which has 17, Bardyang Parish Welders’ Association, Amuda Central Welders’ with 27 members, Okwalo Gwen Parish Welders’ Association with 14 members, Amuda Eastern Welders’ Association with 18 members, Amuda Northern Welders’ Association with 12 members, Okwalo Gwen B Welders’ Association with 14, and Amuda Central A Welders’ Association with 15 members.
Other sources of income for the SACCO include; fining of the members during the weekly savings, tents and chairs hire, welding workshop, growing of cassava, buying shares, registration of new members, and membership subscription fee.
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