Moyo: Minister Kaducu champions grassroots financial inclusion through Boda Boda SACCOs

MOYO, September 23, 2025 –– In a bold step towards deepening financial inclusion and driving economic empowerment in Moyo district, Minister for Primary Health Care and Moyo District Woman Member of Parliament, Dr Joyce Moriku Kaducu, has launched a new initiative of helping to establish Savings and Credit Cooperative Organisations [ SACCOs ] across Boda Boda stages in the district.

The initiative, dubbed “Asusu”, covers 47 Boda Boda stages and aims to reach every village in the district. It seeks to build on the success of Uganda’s broader financial empowerment programmes, including the Emyooga and Parish Development Model [PDM] SACCOs, by directly engaging and supporting grassroots groups that have long operated on the fringes of the formal financial system.

From informal savings to structured finance

Residents in Moyo district, like many others in rural districts of Uganda, have traditionally relied on informal financial mechanisms such as Village Savings and Loan Associations [VSLAs] to mobilise funds. These community-based groups have enabled members to save small amounts regularly and access funds for key expenses, particularly during festive periods or for urgent needs such as school fees or medical bills.

While effective in their own right, these VSLAs often prioritise short-term consumption needs over long-term investment. However, Kaducu’s SACCO initiative is intended to shift this paradigm by introducing more structured financial services that not only support savings but also provide affordable credit to stimulate entrepreneurship, agricultural investment, and small business growth.

“Empowering communities through access to affordable finance is one of the most effective ways to stimulate sustainable development,” Dr Kaducu said during the launch. “These SACCOs are not just financial institutions; they are platforms for community transformation.”

Each newly launched SACCO has received an initial cash injection of Shs 200,000, with additional support of Shs 3 million per SACCO reportedly pledged, though a timeline for the disbursement remains unclear.

Political timing raises eyebrows

Despite the potential of the initiative, the timing of its launch—so close to the upcoming election period, has drawn scepticism from some quarters. Critics question whether the initiative is politically motivated and whether the promised post-election support will materialise.

Others have pointed to the comparison with the long-standing VSLAs, wondering whether the new SACCOs will be more sustainable or simply a short-lived political gesture. Ensuring transparency in governance and clear communication around funding and management will be essential to building trust among community members.

Local opinion appears divided. Some residents see the SACCOs as an opportunity to boost livelihoods and access critical financial resources. Others remain cautious, wary of political rhetoric and unfulfilled promises from previous campaigns.

A Pathway to empowerment, if done right

If well managed, the SACCOs could usher in a new chapter of economic transformation in Moyo. By moving beyond savings for consumption and encouraging savings for investment, these cooperatives have the potential to boost income-generating activities, promote self-reliance, and create jobs at the local level.

Experts note that success will depend on more than just capital injection. For the SACCOs to thrive, members must be equipped with financial literacy, governance skills, and knowledge of investment opportunities. Without this foundation, there is a risk that the SACCOs could mirror the same limitations as existing informal groups.

“There’s a real opportunity here to build something lasting,” said one local community leader. “But it must be more than just handing out money. The people need training, support, and follow-through.”

Conclusion

Minister Kaducu’s initiative to roll out SACCOs in Moyo district represents a potentially transformative approach to rural financial inclusion. By channelling resources to grassroots groups and encouraging investment-oriented savings, the effort could contribute significantly to local economic development.

However, for the initiative to achieve its full potential, it must be backed by transparency, ongoing support, and meaningful engagement with the communities it aims to uplift. Only then can “Asusu” become not just a campaign slogan, but a genuine vehicle for change in the lives of Moyo’s residents.

https://thecooperator.news/moyo-cooperative-faces-setbacks-amid-hope-for-recovery/

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