Masindi SACCO Advocates for Drought-Resilient Crops to Minimise Losses Suffered
MASINDI, March 31, 2025 – Leaders of the Masindi District Farmers Association Savings and Credit Cooperative Society Limited [MADFA SACCO] are urging SACCO members to adopt enterprises such as coffee and cocoa, which are less vulnerable to climate change.
While presenting the 2024 annual report at the Annual General Meeting [AGM] held at HB Hotel in Hoima City on Thursday, MADFA Chairman, Rev. Can. Francis Kajura, stated that farmers who engaged in growing crops like maize, rice, beans, and soya beans faced significant losses, which also impacted the SACCO.
In his report, Kajura revealed that 3,607 loans totalling about Shs 6.6 billion were disbursed in 2024, compared to Shs 7.1bln in 2023, a decline of 2.6 per cent. He attributed this decrease to the drought experienced during the first season of 2024.
Kajura further explained that total deposits grew slightly by 2.5 percent, rising to Shs 3.12bln from Shs 3.1bln in 2023. He noted that the targeted growth of 18 percent was not achieved due to the drought, which affected farm production in the first season of 2024, as well as the low prices for agricultural produce during the year.
“The board is developing strategies to reduce exposure to climatic risks by diversifying agricultural loans, focusing on new enterprises such as coffee and cocoa, which may be less vulnerable to the same risks that impacted maize and rice production,” he said.
Kajura added that the SACCO is also considering expanding its loan offerings to other sectors within the agricultural value chain, including processors, transporters, and input dealers, as well as areas such as housing, education, and small businesses, which are less susceptible to seasonal and environmental risks.
The report also indicated that the total assets of the society at the end of the 2024 financial year stood at Shs 6.8bln, representing a 17.6 per cent increase from Shs 5.8bln in 2023. However, he noted that this fell short of the targeted 25 per cent increase due to various challenges.
“Our focus for 2025 and beyond is to enhance income generation strategies and implement prudent investment practices to strengthen our financial position,” Kajura stated.
He also highlighted the major challenge faced by the SACCO over the years: keeping every member active and committed to the cause. Membership increased by 1,808, from 20,906 to 22,714, representing an 8.6 per cent rise. Of the 22,714 members, 18,653 hold accounts, while 4,061 are served under groups without individual accounts. Kajura pointed out that of the 18,653 account holders, only 6,901 are classified as active members.
Additionally, the SACCO achieved an 18 per cent growth in equity, rising from about Shs 2bln in 2023 to Shs 2.4bln in the 2024 financial year. This growth was boosted by the current year’s profit of about Shs 222 million.
The SACCO’s Treasurer, Godfrey Lokisyepe, highlighted the challenge of loan recovery, which has led the board to maintain loan loss provisions of Shs 135ml;n. He urged members to adhere to their repayment plans to ensure positive credit reference bureau [CRB] ratings.
Lokisyepe also revealed that management intends to increase the minimum liability from Shs 1 billion to Shs 2 billion, to enable the society to access sufficient financial resources to meet members’ needs.
“The society currently depends on VSLA deposits for lending operations, but these are often withdrawn ahead of Christmas, which affects disbursements in the fourth quarter and the first quarter,” he explained.
He added that the board has introduced a minimum monthly saving of Shs 10,000 per member to achieve specific goals.
Bob Muzola, the MADFA SACCO CEO, said that when a member saves 30 per cent, the SACCO offers them a 70 per cent loan. He also noted that loans are available for youth and women farmers. Muzola expressed the SACCO’s ambition to transform into a Regional Bank, providing affordable loans to farmers.
Johnson Abitegeka, Commissioner for Business Development and Quality Assurance at the Ministry of Trade, Industry, and Cooperatives [MTIC], urged SACCO managers to continue sensitising their members on the importance of loan repayment. Abitegeka, without providing specific statistics, noted that several SACCOs in Bunyoro had collapsed due to member defaults, which needs to be addressed.
He also challenged SACCO members to appoint managers with strong track records and a vested interest in the SACCO’s success, stating that this would contribute to the growth of SACCOs. Abitegeka commended MADFA for its good management and emphasised that cooperative societies are vital for societal development. He encouraged SACCO members to save more and purchase additional shares, which could enhance the liquidity of the organisation.
The Hoima District Commercial Officer, John Tumusiime, expressed concern about the high default rate among SACCO members, warning that this could threaten the stability of the SACCO. He urged board members to ensure that the society remains focused on its roots in farming as it expands to offer loans to other sectors, as the SACCO was originally established by farmers for farmers.
Nathan Tibemanya, a farmer from Bulima in Masindi District, commended the board for the smooth operations of the society but urged them to expedite loan disbursements when members request them.
New Branch Opened in Hoima
Speaking as the chief guest, James Kasaya, the Hoima East Division Assistant Resident Commissioner, expressed excitement about the opening of the MADFA branch in the city, noting that it would help farmers access loans at lower interest rates compared to banks and money lenders.
“I am happy to associate with MADFA. I am also going to register and become a member. I encourage my fellow farmers to join, we need SACCOs like this for our social and economic transformation,” he said.
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