Cooperatives & CommunitiesDevelopmentEast AfricaFinance & BankingNews

Savings groups warned against sharing savings for Christmas

Rogers Byamukama, the Federation of Uganda Football Association’s (FUFA) delegate for the Albertine region, has condemned the practice, widespread among savings groups in Masindi district, of sharing their savings among members to spend during the festive season. 

Byamukama made the remarks last Saturday while officiating at a similar ceremony, during which members of Kamurasi People with Disability saving group in Masindi municipality met to share out savings they had collected during the year.

“I advise you to amend your constitution and introduce a loans scheme so that you can start sharing dividends instead of savings,” Byamukama said, arguing that the group’s current approach will stall its growth.

 According the group Chairperson, Silvia Akugizibwe, the saving scheme was started with the aim of improving members’ household income.

“We normally save between Shs 15 to 20 million each year, but were significantly affected by COVID-19,” she said, as members met to divide the year’s savings amongst themselves.

The Saturday meeting was the group’s fourth such gathering since its founding, and members shared Shs 14 m worth of savings.

It was at this point that Byamukama urged group members to reconsider the practice, saying, “If you had not been sharing the savings all these, you would have reached another level by now.”

He added that savings groups are the only avenues where members can get loans at a lower interest rates and develop themselves.

“Many people are grappling with loans in commercial banks. If savings groups have good leadership and are well-organized, they are the best option for the common man. These savings can be utilized well to chase poverty from your families,” he stated.

Byamukama prescribed honest leadership, transparency and accountability as key ingredients for the development of a robust savings group.

Kamurasi PWD group has 57 members including the PWDs, Kamurasi demonstration school staff members and other members within the area. 

Buy your copy of thecooperator magazine from one of our  country- wide vending points or an e-copy on emag.thecooperator.news

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button