MSC advises Emyooga groups to build culture of saving
LIRA– The Uganda Microfinance Support Centre [MSC] has called upon Emyooga groups in Lango and Acholi sub-regions to develop a culture of saving and paying back their loans.
According to Mable Nabadda, the MSC manager for Lira and Gulu, high default rates, multiple borrowing, poor saving culture, loan diversion and poor record keeping are common among Emyooga SACCOs.
Nabadda said since the launch of Emyooga programme, MSC has disbursed Shs 19 billion as seed capital to 3,107 groups, but the agency has managed to recover only Shs 4.6bln.
Among others, the main enterprises funded, according to Nabadda, include growing maize, sunflower, cattle fattening, soybean, beans, rice, cattle fattening and lending to village saving and loan associations [VSALA].
Emyooga programme is the Presidential Initiative for Wealth and jobs creation whereby government hoped revolving funds would be used to support various groups to establish income-generating activities.
Nabadda added that political interference was another challenge faced by Emyooga clients, as well as the failure to submit quarterly performance reports, failure by clients to provide accountability and a poor mindset for Emyooga SACCO members.
“Many Emyooga groups are not saving and the recovery is still a very problem,” Nabadda said, during the regional celebration of 20 years of MSC in the country.
The Registrar of Cooperatives Societies / Commissioner Cooperative Policy and Development and MSC board member, Robert Bariyo Barigye attended the ceremony graced by Resident City Commissioner, Lawrence Egole.
Egole urged business groups in northern Uganda to save if they are to borrow money from MSC. He urged them to invest the money wisely.
He advised people to embrace the Parish Development Model [PDM].
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