Nebbi Workers’ SACCO loan portfolio hits Shs 5bln
NEBBI, May 27, 2024 - Nebbi Workers’ SACCO operating in Nebbi town has since 2014 disbursed loans worth Shs 5 billion, it was revealed over the weekend as the SACCO held its annual general meeting [AGM].
The SACCO started way back in 2010 with 200 members but the number has now grown to 2,700, attracting members from the entire West Nile region.
The growth in the loan portfolio was disclosed at the headquarters of the SACCO where the election for the new Board of Directors also took place.
According to the Assistant General Manager of the SACCO, Collins Nyingaling, loan disbursements grew to Shs 3.2bln as of December 2023, and rose again by Shs 1.8bln in the first quarter of 2024, due to the increased membership/ public service workforce, and good marketing strategies employed by the management.
“We have at least 42 percent of the workforce expanding beyond the West Nile region targeting 80 percent of our clients with more loan products to be introduced in the SACCO," Nyingaling said.
Nyingaling noted that, although the SACCO has experience growth in loans, multiple borrowing by some of the SACCO members is a big challenge, which he said affects the SACCO in terms of loan repayment.
On his part, the outgoing Board Chairman of the SACCO, Gilbert Onencan attributed the increment in the loan portfolio to relaxing borrowing conditions, including extending the loan facility to the general public who present collateral for the loans procured.
“We used to give loans strictly to civil servants but, we have changed our marketing strategies and opened access to the general public to get loans from the SACCO based on the affordability and the security attached to the loan products,” Onencan said.
Onencan assured the SACCO members and other clients that the SACCO would soon introduce new loan products such as boda boda loans, investment loans, school fees loans, as well as agriculture loans among others.
However, the Deputy Resident District Commissioner Nebbi, Hassan Sebilweriwa said over 50 percent of SACCOs across the country are failing to develop due to the poor saving culture, and lack of transparency in handling the SACCO affairs.
“We have a poor saving culture and poor management of records in our own SACCOs. Some members think they can borrow loans even though they don’t have savings. This is not right because the strength of SACCOs depends on members' savings,” said Sebilweriwa.
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