Rakai farmers form own SACCO to provide cheap credit for production
RAKAI– At least 100 coffee and dairy farmers in Kacheera Sub-county in Rakai district have formed their own SACCO [Kacheera Sub-county Coffee and Dairy Farmers SACCO] to provide members with cheap loans for enhanced production.
The SACCO chairman, Saphan Ampaire hopes that the new SACCO will provide quick loans to members. moreover at a low interest rate to buy fertilisers, garden equipment, and milk coolers for dairy farmers who have been incurring losses due to the poor handling of milk.
“This farmers SACCO will help farmers with cheap, loans boost their agricultural produce,” he said, adding that some big banks in the districts of Rakai and Lyantonde demand collateral such as land titles, milk coolers, tractors, trucks, and coffee processing machines.
Ampaire said small farmers and SACCOs do not benefit from the Agricultural Credit Facility [ACF] set up in the Bank of Uganda to support ventures in the agriculture sector. “Many farmers in villages have not benefited from it [ACF] because it only favours big banks. SACCOs cannot access the facility directly.”
During the launch of the SACCO, Buyamba County Member of Parliament, Gyaviira Ssemwanga encouraged the locals to join SACCOs and save, stressing that it would help them to improve their livelihoods.
He donated Shs 20 million to the SACCO and argued the SACCO would be a source of agricultural finance in Kacheera Sub-county. ”Mobilise more farmers to save money with the SACCO so that it grows,” he advised.
Rakai district commercial officer, Jackson Matovu said many farmers in the district incur losses due to climate change characterised by long dry spells and unreliable rains.
He added that farmers whose agricultural activities are not insured find it hard to access loans at low interest rates from commercial banks whose interest rates are prohibitive to most farmers in the country.
Matovu said the formation of farmers’ SACCOs at the village level would help the farmers to get loans with low interest rates.
He revealed that only five farmers’ SACCOs have been established in the district.
He also said about 18 Emyooga SACCOs have been established in Buyamba Constituency and 15 in Kooki County in Rakai district. He said some of Emyooga SACCOs do not favour farmers.
https://thecooperator.news/arua-city-emyooga-saccos-urged-to-be-audit-ready/
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