Preparing for succession: Cooperatives tipped to groom future leaders
ISINGIRO-Co-operators and members of SACCOs in Uganda have been advised to begin grooming future leaders rather than waiting for the current leaders to die or retire so that they can recruit new ones who may come with no experience or skills to sustain the continuity of the cooperatives.
The call was made recently during a two-day financial literacy training held by the Uhuru Institute for Social Development [TUI] where more than 150 members of Divine Grace SACCO were trained on how best they can run their business for generations.
The training was held at Endinzi Church of Uganda, Endinzi Town Council, Bukanga County in Isingiro district, western Uganda.
Amon Mutabarura, one of the technical support associates of TUI said most cooperatives have collapsed because of handpicking wrong people who don’t have any knowledge about the running of cooperatives or Saccos.
“Many Saccos have blundered while selecting leaders without checking their backgrounds because sometimes when cooperatives are performing well, some people want to join and enjoy the benefits but not serving,” Mutabarura said, adding that oftentimes, such leaders lack the experience and skills of managing cooperatives, putting the future of the businesses at risk.
Mutabarura advised cooperatives to choose leaders in time rather than waiting for the crisis to paralyse the institution.
“In the cooperative movement, Saccos are as good as their leaders and leaders are vision bearers. And choosing leaders in time is one of the strategic planning of the succession and a growing concern of financial institutions.”
He said succession is a priority and not accidental. If you want your Divine Grace Sacco to be there for the next 15 years, you should not focus on the leaders you have in power today. You should have already identified the successors and groomed them to take positions,” Mutabarura emphasised.
The training, which took place sought to equip the leaders in attendance to guide their members forward towards achieving their cooperatives’ objectives and goals.
Mutabarura also advocated for more training for cooperatives, saying it is provided for in the Cooperative Societies (Amendment) Act, 2020.
Mutabarura adds that “The strength of cooperatives is in the strength of its members, not in finances. And if members don’t receive the training, they must demand for it and it’s upon this predicament that members can choose people who are competent to manage the institution.”
He also encouraged cooperatives to go for insurance as part of strategic planning to mitigate risks such as wildfire, accidents, and theft among others.
He said insurance is a shield to protect members’ savings.
Job Lwasampijja, Country Loans Manager at Divine Grace SACCO, thanked TUI for organising the training on financial literacy.
He said the training of the board members and the management team of the SACCO has helped as they now work together instead of fighting each other. After the training, everything fused into the system very well and there is harmony,” he added.
He encouraged the co-operators to always save if they are to develop themselves.
“I appeal to the members not only to save because they want to get a loan. Save because it is your money that will help you when there is a need,” Lwasampijja said.
Dr Abel Tumusiime, Chairman Divine Grace Sacco also thanked TUI for being consistent and requested for continuity of Sacco member training so they remain aware of responsibilities.
“We had started this partnership in 2018 but corona befell us along the way. Now that we have restarted, we need these trainings doubled in a year and we also need more networking so that we can also grow big like any other cooperative.
Leonard Okello, the Chief Executive Officer TUI, encouraged co-operators to put the acquired knowledge into practice.
“You can get all kinds of knowledge but it will only become useful when you translate information into practice. A cooperative grows on the active participation, determination, commitment, and dynasty of its members,” he said.
He said the training was possible through The Coop360°Network, an arm of TUI that aims to support cooperatives and their members and impact communities, in line with Cooperative Identity [principles, values, and ethics], financial literacy, history of cooperatives, and development.
He said TUI normally trains both leaders and members of the cooperatives in order to bridge the gap between both sides so that they are able to move together in whatever they do.
“Around the country, you find that many cooperative leaders- the chairperson, the secretary, the treasurer, and the manager, have attended many training sessions but the cooperative members who are the anchor of every cooperative are just left behind. So by doing such training, we bridge the gap so that leaders of the cooperative and members are on the same page,” he said.
Okello is optimistic that a series of Uhuru trainings, appreciated by both co-ops in the rural and urban settings, will rebirth the strong cooperative movement in Uganda.
“I have no doubt that what we are doing in one cooperative creates impact in other cooperatives and if all this goes well we shall see a very vibrant, united, enterprising, productive, cooperative movement that should be contributing up to 40 percent to the GDP of the economy,” he said.
Florence Bukirwa, one of the members of Divine Grace Ngarama branch, embraced the training for enlightening them on the roles they are supposed to play in their Sacco.
“This orientation was much needed because some things like the policies and regulations were not so clear to us,” she said.
“They again taught us to work as a team in whatever we are doing, be patriotic and work hard to produce and sell our products for a better market to embrace development.”
“Also as members, we should be visiting our Sacco and keep checking on its systems even after it has developed to understand whatever is taking place instead of leaving that role only to our leaders.
Steven Kanyesigye, a member at Divine Grace Endinzi Main branch, said during the training taught him how to save instead of rushing for loans.
“The training was the first of its kind in Endinzi Town Council and we were taught how to save and borrow so I implore our fellow members to continue saving so that we can achieve whatever we want in life,” Kanyesigye said.
“I also appeal to our leaders to continue lobbying for us more services so that we can uplift the poorest person in our village,” he added.
Divine Grace Sacco which started in 2007 under the Divine Ministries so far has 10 branches in the districts of Isingiro, Bushenyi, Kampala, Sembabule, Kasanda, and Wakiso. Currently, it has 7,210 active members, boosting a share capital of Shs 316 million, and a loan portfolio of Shs 586 mln.
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