Over 300 Emyooga SACCOs in Masaka to get extra Shs 20mln each

MASAKA- At least 300 best-performing Emyooga Saccos in the Greater Masaka region have been selected to benefit from the additional seed capital of Shs 20 million each from the government.

This was revealed by Masaka regional manager for Microfinance Support Centre [MSC], Samson Magala saying ”the best performing Emyooga SACCOs in terms of savings, loan re-payment and good leadership will receive an additional seed capital of Shs 20m each.”

Among the best performing Emyooga SACCOs include, Kimanya-Kabonera elected leaders in Masaka city, produce dealers, taxi operators, market vendors, restaurant owners, mechanics, boda-boda riders, veterans, and women entrepreneurs.

The greater Masaka region with 22 constituencies has 391 SACCOs with 2090 associations in Masaka city and nine districts of Lwengo, Kalangala, Kalungu, Sembabule, Bukomansimbi, Kyotera, Rakai, Lyantonde and Masaka rural district.

Magala said the region received the total seed capital of Shs 12.2bln and was disbursed to 391 SACCOs). He said since the Emyooga programme was launched in the region, Shs 5.6bln in savings has been realised from the SACCOs.

He said about 61252 males, 5572 females, 3850 youths and 633 persons with disabilities [PWDs] have benefited from the Emyooga programme in the region.

The chairperson of Kimanya-Kabonera elected leaders, Anthony Ssembuusi said they started with a membership of only 90 members and it has risen to 441 members. He said they received the seed capital of Shs 50mln and currently, they have realised Shs 256mln.

Bukomansimbi district commercial officer, Patrick Balungi said some of the successful SACCOs in the district are taxi operators, elected leaders, fishermen, and veterans. He attributed the success of these SACCOs to teamwork and commitment of SACCO leaders and continuous supervision by the office of the district commercial officer.

He said Bukomansimbi received the seed capital of about Shs 1.1bln which was disbursed to 36 SACCOs in the two constituencies of Bukomansimbi South and Bukomansimbi North. About Shs 400mln in savings has been realised. A total of 960mln loans was disbursed to 34 SACCOs and Shs 70mln paid back.

However, he said there is still some money lying idle in the bank account after one of the categories for PWDs submitted their documents very late and their certificate is not yet out.

He also noted that some SACCOs are finding it hard to recover the money from members. He added many others are facing the challenge of poor saving culture and delay in paying back the money. He attributed this to members who save purposely for loans only.

He said that some SACCOs lack leadership skills and that some members have a mindset that the Emyooga money was given to them as a reward for supporting President Museveni during the campaigns.

Masaka regional coordinator of the Emyooga programme in Masaka region, Baker Nambaale said they have intensified continuous training of SACCO leaders on financial literacy and mindset change to boost the saving culture and encourage them to establish viable income-generating enterprises.

”We have provided technical assistance towards the SACCOs under this initiative to ensure that there is total sustainability,” he said.

MSC in conjunction with Uganda Micro-finance Regulatory Authority [UMRA] has started training leaders of 25 progressive Emyooga SACCOs in the Greater Masaka region until they are licensed.

During the training in Masaka City, UMRA Compliance Officer, Benon Mugambe said they have Selected 25 successful SACCOs and started sensitise and equipping their leaders with technical assistance towards acquiring permanent registration, and consequently, support them to get licensed.

He said the Emyooga SACCOs are registered by the Registrar of Cooperatives under section 25 part 55A [3] of the Cooperative Societies [Amendment] Act 2020, on probation for a period of two years, after which they are expected to be permanently registered, depending on their performance.

He advised SACCO leaders to expedite the formation of their action plans for subsequent activities to ensure that SACCOs get registered and as well as getting licensed.

Emyooga is a presidential cluster initiative on wealth and job creation, which was introduced in 2019. It is under the Tier 4 Microfinance Institutions and Moneylenders Act, 2016 as well as the Cooperative Societies [Amendment] Act, 2020.

https://thecooperator.news/mbarara-rcc-urges-emyooga-saccos-on-marketing/

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