Minister Aza calls for stronger regulation and digital transformation of SACCOs
The minister said financial cooperatives across Africa, including Uganda, were facing technological, institutional and regulatory challenges that required collective solutions
DAR ES SALAAM, Tanzania, October 15, 2026 — The Government of Uganda has pledged to address outstanding regulatory concerns affecting the country’s Savings and Credit Cooperative Organisations [SACCOs], while urging the sector to embrace technology, strengthen governance and protect members’ savings.
Uganda’s Minister of State for Cooperatives, Tom Alero Aza, said government was committed to finding a fair and sustainable regulatory framework that protects SACCO members while addressing concerns raised by the cooperative sector.
Speaking on Wednesday at the 20th SACCA Congress of the African Confederation of Savings and Credit Associations [ACCOSCA] in Dar es Salaam, Tanzania, Aza said regulation should strengthen rather than undermine the cooperative model.
“I wish to assure the representatives of Uganda’s SACCO sector attending this Congress that Government is committed to addressing the outstanding regulatory concerns through prudent, impartial and constructive engagement with all relevant stakeholders,” he said.
“Our objective is to arrive at a fair and sustainable outcome that protects the interests of SACCO members, responds to the legitimate concerns of SACCOs, strengthens accountability and provides clarity on regulatory responsibilities.”
The minister said Uganda recognised the need for a “clear, coherent, effective and proportionate regulatory framework” to safeguard members’ savings, promote institutional stability and support the sustainable growth of SACCOs.
Aza was speaking under the Congress theme, “Building Trust, Driving Transformation – The Future of Financial Cooperatives in Africa.”
He said trust was fundamental to the success of financial cooperatives because members entrust SACCOs with their savings and economic aspirations.
“Trust is the foundation upon which successful financial cooperatives are built. Our members entrust SACCOs with their hard-earned savings, their aspirations and their economic future,” he said.
He urged SACCO leaders to protect that trust through good governance, strategic leadership, professional management, transparency, accountability and efficient service delivery.
Aza also called on SACCOs to adopt appropriate technologies to improve their operations and strengthen internal controls, saying digitalisation had become essential for the survival and competitiveness of financial cooperatives.
“Our SACCOs must also embrace appropriate technologies to improve operational efficiency, strengthen internal controls, enhance financial inclusion and deliver accessible, affordable and reliable services to members,” he said.
“In an increasingly digital financial environment, technology is no longer optional; it is an essential instrument for institutional sustainability and competitiveness.”
The minister said financial cooperatives across Africa, including Uganda, were facing technological, institutional and regulatory challenges that required collective solutions.
He said regulation should protect SACCO members, address governance weaknesses and prevent financial misconduct without undermining the cooperative principles on which SACCOs are founded.
“We believe that regulation should not undermine the cooperative model. Rather, it should protect members, address governance weaknesses, prevent financial misconduct and create an enabling environment for responsible growth,” Aza said.
He called for harmonisation of the legal and institutional arrangements governing financial cooperatives while ensuring that SACCOs remain safe, inclusive and responsive to the communities they serve.
Aza also reaffirmed Uganda’s commitment to protecting the identity and principles of the cooperative movement.
“As a government that recognises and believes in cooperative philosophy and ideology, Uganda remains committed to promoting, protecting and upholding the ‘cooperative identity, values and principles’,” he said.
He said it was the collective responsibility of governments and cooperative leaders to safeguard the distinctive character of cooperatives as member-owned and democratically controlled institutions.
The minister commended ACCOSCA for creating a continental platform for dialogue, learning and collaboration among financial cooperatives.
He said Uganda expected the Congress to produce practical solutions to challenges affecting the sector, particularly in governance, regulation, digital transformation, financial inclusion, institutional sustainability and protection of members’ interests.
“Let us leave this Congress with a renewed commitment to building trustworthy institutions, strengthening our cooperative movements and positioning African financial cooperatives as key drivers of inclusive economic growth and sustainable development,” Aza said.
The minister was accompanied by Uganda’s Commissioner for Cooperative Policy and Development, who also serves as Registrar of Cooperative Societies Robert Bariyo Barigye, alongside other representatives of Uganda’s cooperative sector.
The 2026 SACCA Congress is Africa’s premier platform for strategic dialogue, knowledge exchange and collaboration. The platform provides a unique space for participants to interrogate emerging challenges, unlock new opportunities and forge partnerships capable of accelerating financial inclusion and sustainable cooperative development.
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