MBARARA CITY, 24 August 2025 — Pride Bank Limited has unveiled a new financial product tailored for Savings and Credit Cooperative Organisations [SACCOs] and investment clubs, aimed at enhancing access to credit and supporting community-led financial initiatives.
The financial solution was officially launched in Mbarara City last week, marking a major milestone for the institution following its recent upgrade to a fully licensed Tier II bank.
The new product offers structured financial services, affordable credit, and business development support to various group savings models including SACCOs, Village Savings and Loan Associations [VSLAs], and Rotating Savings and Credit Associations [ROSCAs].
“Earlier this year, we transitioned from Tier III to Tier II, enabling us to offer a wider range of services,” said Elizabeth Namaganda, Head of Marketing and Communications at Pride Bank.
She explained that Mbarara was chosen for the launch as it hosted Pride Bank’s first-ever branch 30 years ago and remains a hub for cooperative activity in western Uganda.
Product features and financial support
Eligible groups will be able to access loans of up to 150 percent of their total savings after just four months of consistent banking with Pride Bank. Beneficiaries will also receive financial literacy training and mentorship to strengthen their operations.
“We are specifically launching this product in Mbarara due to its historical significance to Pride Bank and the region’s strong cooperative culture,” Namaganda noted. “The product is designed to support SACCOs, VSLAs, investment clubs, and ROSCAs, offering structured savings, accessible credit, and capacity-building.”
Joseph Feeta, Head of Business at Pride Bank, emphasised the product’s potential to transform local economies. “By pooling resources and accessing structured credit, these groups can turn modest contributions into viable enterprises,” he said.
He highlighted the scale of opportunity, citing over 10,000 registered SACCOs and 8,000 active investment clubs across Uganda. Together with VSLAs, they contribute significantly to the country’s 66 percent financial inclusion rate.
Pride Bank stated that there is no fixed ceiling on funds allocated for this product. However, individual SACCOs can access up to the bank’s lending limit of Shs 48 billion.
Positive reception from local leaders
The launch was well-attended by community leaders and SACCO representatives from the western region.
Francis Beemanya, Chairperson of the Public Accounts Committee [PAC] for Mbarara City, welcomed the initiative as a timely tool for economic empowerment. “Mbarara is a commercial hub in western Uganda. This product offers structure and support to unlock the region’s full potential,” he said.
Paul Kahiigi Turyamureeba, Chairperson of Kyamuhunga Peoples’ SACCO, said Pride Bank’s entrance would increase competition, improving services and easing the pressure on existing institutions.
“Despite the presence of commercial banks offering similar services, we still struggle to meet member demand for business and farming loans,” he said. “Competition from Pride Bank will push all providers to do better.”
However, Turyamureeba urged the bank to consider revising its interest rates to protect the sustainability of SACCOs’ internal lending and dividend models.
Fred Nuwagira, Chairperson of Kitura Farmers SACCO, called on Pride Bank to offer competitive interest earnings on fixed deposits. “If we are to entrust members’ savings to the bank, we need assurance that our SACCO will benefit through meaningful returns,” he said.
Driving financial inclusion and economic growth
The product launch aligns with Uganda’s broader goals of expanding financial inclusion and advancing towards middle-income status. According to the Ministry of Trade, Industry and Cooperatives, SACCOs now reach more Ugandans than commercial banks, particularly in rural and semi-urban areas.
Meanwhile, investment clubs, especially youth-led and professional groups—are rapidly growing in influence, investing in sectors such as real estate, agribusiness, and entrepreneurship. These groups, often starting with just 10–15 members, are emerging as effective vehicles for financial literacy, discipline, and wealth creation.
Ten prominent SACCOs from western Uganda attended the launch, including Kyamuhunga Peoples’ SACCO, Mushanga SACCO, Shuuku SACCO, Millennium Ruhiira SACCO, and EBO SACCO.
With this new product, Pride Bank aims to position itself as a key partner in Uganda’s cooperative and community finance ecosystem.
https://thecooperator.news/pride-bank-wins-big-at-the-2025-annual-agricultural-excellence-awards/
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