Museveni commends cooperatives, talks of re-establishing Cooperative Bank
SHEEMA – President Yoweri Museveni has appreciated the role of cooperatives in the development of Uganda especially in working to move farmers from subsistence to the money economy through commercialisation of agriculture as well as saving, as he also talked of reopening the Cooperative Bank.
Museveni said this on Saturday while the cooperative societies and unions in Uganda joined the rest of the world to celebrate the 100th International Day of Cooperatives.
The International Day of Cooperatives was celebrated under the theme “Cooperatives Build a Better World”.
In a speech read for him by the minister for cooperatives Francis Mwebesa, Museveni noted the cooperatives have recorded milestones in the economic transformation of the country.
“I congratulate you upon this occasion when you’ve joined the rest of the world to celebrate the 20th UN day of cooperatives and the 100th International Day of Cooperatives. I have come to learn that this day is intended to increase awareness and appreciate the role played by cooperatives in human development and share economic transformation,” Museveni said.
He also said that the activities undertaken during the cooperative week such as tree planting, market cleanliness, and blood donation among others were promoting the fundamental principles of cooperation and inducing the identity and value of cooperatives in a society.
“This year’s theme cooperatives building a better world is an endorsement that cooperatives are a key to building an inclusive economy for all.”
“Involvement of cooperatives is, therefore, a clear testimony that the Government of Uganda believes cooperatives can make a significant contribution to the development of the economy. This year’s celebrations are therefore a watershed event of the strong statement of recognition,” he added.
Museveni said, “It is in 1844 a group of 28 artisans working in the cotton mills in the town of Rochdale, in the north of England established the first modern co-operative business, the Rochdale Equitable Pioneers Society to provide an affordable alternative to poor quality and alliterated food and provisions using any surplus to benefit the community”
“Since then the cooperative movement has flourished extending across the globe incapacitating all sectors of the economy.”
“I am now happy to note that Uganda’s political social-economic development has leveraged on the cooperatives’ establishment and continues to be in extractable tied with the growth of cooperative sector despite the challenges faced by the sector in the mid-1990s.”
Government, therefore, recognises the need for the development of cooperatives as outlined in the national development plan. This is by empowering our population with ownership and the voice of economic initiatives that shape their lives, Museveni said.
The president said the government has also created enabling environment that enhances a strong sustainable cooperative sector.
“It is important to note that the NRM government has been committed to revising the cooperative sector over the past three decades with recognition of the role of cooperatives spread in economic development.”
He added that the organised nature of cooperatives has been useful right in the dissemination of other wider community-based government initiatives right from Operation of Wealth Creation [OWC].
He said cooperatives have helped in community mobilisation, sensitisation, training, and advisory services at the grass-root level.
Museveni said cooperatives are expected to play a critical role in the implementation of the Parish Development Model [PDM], a new mechanism for improving the incomes and welfare of Ugandans at the household level.
“This year’s cooperative day is occurring at a turning point in our countries’ development agenda the theme indeed suitable fits into a real economic intervention our government has just introduced through the parish development model.”
PDM is a multi-sector strategy that fits into NDP III involving seven pillars with a goal of creating socioeconomic transformation by transforming 39 percent of Uganda’s households that are stuck in the subsistence economy into the money economy says the president
Through the distinctive focus on values, cooperatives have indeed proven themselves as resilient and viable model that can foster the people to thrive says the president
“Even during the difficult times like during Covid-19, still cooperatives played a pivot role in making government’s household programmes a success.”
Museveni pledged support to revive the Cooperative Bank which was closed by the Bank of Uganda on May 19, 1999, due to mismanagement and corruption among the top managers.
He said when the National Resistance Movement [NRM] captured power in 1986 there were only about 5000 primary society cooperatives but that these have grown to about 40,000, without including original SACCOs, PDM SACCOs and Emyooga SACCOs.
It is in this field that government is feeling the need to re-establish the Uganda cooperative bank which will help to fill the existing agricultural financing gap to promote financial inclusiveness”
Museveni also said he is aware of the war losses that cooperatives suffered during the political insurgency, which he regarded as one of the biggest setbacks of the cooperative movement that should be dealt with by compensating cooperatives.
“Government is committed to fully compensate all cooperatives that lost their property due to insurgency.”
“As I conclude I invite you all to join me in applauding the significant contribution and positive impact the cooperatives in Uganda and across to grow. I wish the cooperative movement every success,” Museveni said.
Robert Kankiriho, Chairperson of Muhame Financial Services Cooperative Society Limited requested the government to inject the PDM funds into already existing SACCOs rather than creating new ones.
“We request that you consider allowing the SCCOs to monitor and supervise the Emyooga and the Parish Development model Funds. The money you want to take to the rural community, if you can agree and give it to SACCOs, you will see great wonders on the ground because we reach the people better than the commercial banks and the recovery will not be a problem,” Kankiriho said.
State minister for cooperatives Fredrick Ngobi Gume appealed to co-operators to start mobilising funds in preparation for the reopening of Cooperative Bank.
“We have talked about the cooperative bank every year. By the time we meet next year, we should have mentioned that we have now started. The fact that government support may delay, if you agree as co-operators and move the resources you have in your respective financial institutions you can begin as the government also sees how to support you but don’t wait to start,” Gume said.
He also advised the co-operators to stay united, avoid conflicts and add value to their products in order to move forward.
Maj Gen Sam Kavuma, chairperson of Wazalendo SACCO said he has no objection to revising the cooperative Bank in Uganda.
“I have no objection with that as long as a drawing conclusion is agreed among ourselves to see how we can incorporate it’s just a mutual agreement among cooperatives and SACCOs to rebirth our Uganda cooperative Bank.
https://thecooperator.news/with-a-billion-members-worldwide-cooperatives-are-a-force-to-reckon-with/
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