SHEEMA, October 2, 2026 — The Minister of State for Cooperatives, Tom Alero Aza, has called on cooperative members across Uganda to adhere to cooperative principles and values to ensure sustainable growth, organisational continuity and institutional stability.
Aza made the call on Wednesday during a visit to Mushanga Cooperative Savings and Credit Society Limited [Mushanga SACCO] in Sheema District, marking the launch of his continuous monitoring and sensitisation tour of large SACCOs and cooperative unions across the Ankole Sub-region.
“My dear cooperators, we emphasise cooperatives to help the poor achieve economic security, improve their standard of living and mobilise communities through government interventions such as the Parish Development Model [PDM], Emyooga and the GROW project,” Aza said.
“Through collective marketing, shared skills and value addition, cooperatives create economies of scale that protect citizens from exploitation.”
Minister praises Mushanga SACCO governance
During his inspection of Mushanga SACCO, a member-owned financial institution established in 1969 and officially registered on July 16, 1981, Aza commended the board and management for what he described as high standards of transparency, operational efficiency and financial discipline.
“I was quietly seated here listening, and from the bottom of my heart, I want to congratulate the management of Mushanga SACCO,” Aza said.
“I am highly impressed by the superb leadership and governance demonstrated here. Leaders must possess loyalty, trustworthiness, objectivity, consensus-building skills and a visionary attitude.”
According to performance figures presented by General Manager Gorden Nankunda, Mushanga SACCO has 71,285 members across 19 branches and outreach centres in Sheema, Buhweju, Bushenyi, Rubirizi, Mbarara, Isingiro, Ntungamo and Kampala.
The SACCO has Shs 19.2 billion in share capital, Shs 41.95 billion in member savings, a loan portfolio of Shs 72.25 billion and total assets of Shs 97.1 billion.
The Registrar of Cooperative Societies, Robert Bariyo Barigye, said Mushanga SACCO had grown from a single rural branch into a major regional financial institution competing with commercial banks.
“At one time, banks used to look down on SACCOs, but today you sit at the same table,” Barigye said.
“There is little difference today between Mushanga SACCO’s branch in Kabwohe and neighbouring commercial banks such as Centenary Bank. You can now discuss issues as equals, and as a ministry, we feel proud.”
Regulatory confusion poses challenge
The minister’s monitoring tour comes amid concerns over the dual-regulation framework affecting large SACCOs with voluntary savings of more than Shs 1.5 billion and institutional capital exceeding Shs 500 million under the Bank of Uganda regulatory framework.
Mushanga SACCO Board Chairman Gilvazio Bafaki raised concerns about overlapping mandates between cooperative laws and central bank regulations.
Aza and Barigye assured cooperative leaders that the government was working towards a unified resolution of the regulatory challenges.
“We appreciate the concerns of large SACCOs who feel that after being baptised in one faith, they are being taken elsewhere for another ritual,” Barigye said, referring to the transition to central bank licensing.
“Following engagements with parliamentary leadership and the Ministry of Finance, the licensing timeline was extended to March 30, 2027, to allow for harmonisation of these regulatory frameworks.”
Aza said the government would take the concerns raised by cooperative leaders to Cabinet.
“We are going to take all these challenges loud and clear to our Cabinet colleagues,” Aza said. “Where we need legal adjustments, we shall work harmoniously to implement them because cooperatives are built on cohesion, unity and mutual respect.”
Aza also highlighted operational challenges facing SACCOs in border districts, particularly difficulties recovering loans from borrowers who cross into neighbouring countries.
“Those districts that are around the borders are suffering,” Aza said.
“You find somebody picks a loan in a SACCO or in a bank in Arua and, when he is supposed to pay, he takes off to Congo. Will you follow him there? He is already in Congo.”
He cited similar challenges in districts bordering South Sudan, saying some borrowers from areas such as Moyo, Adjumani and Koboko cross into the neighbouring country after obtaining loans.
Ministry expands cooperative training
To address gaps in financial literacy and administrative skills within the cooperative movement, Aza said the ministry had established academic partnerships aimed at upgrading cooperative training programmes.
“We have signed a Memorandum of Understanding with the Cooperative University of Moshi in Tanzania to kick-start advanced degree programmes,” Aza said.
“While Kigumba Cooperative College has been issuing diplomas and certificates, we are linking it with Moshi University and MUBS to elevate training up to Master’s and PhD levels.”
Aza also urged cooperative leaders and members to regularly read The Cooperator magazine to keep abreast of developments and issues affecting the cooperative movement.
“Cooperatives have the potential to transform this country only if they are founded on a common bond, led by visionary and honest leadership, and there is continuous and regular supervision,” he said.
“To you, the managers, you always have access to this kind of booklet, the TheCooperator magazine. It is very resourceful. Everything that you have mentioned here has also been talked about in this magazine.”
Aza said the ministry’s countrywide tour was intended to sensitise, mobilise and educate communities about the importance of joining and strengthening cooperatives.
“Our journey started this morning to sensitise, mobilise and create awareness. We want to educate the masses about the importance of being in the cooperative movement,” he said.
Tour extends to Bushenyi
After engagements with the Ankole Coffee Producers Cooperative Union [ACPCU], Mushanga SACCO and Muhame Financial Services in Sheema, Aza extended his monitoring tour to Butuuro SACCO in Nyakabirizi, Bushenyi-Ishaka Municipality, on Thursday.
Welcomed by Butuuro SACCO Board Chairman Janan Mubehamwe, Aza commended the institution, which has 23,000 members, a Shs 27 billion loan portfolio and Shs 37 billion in assets.
He described the SACCO as an example of community-driven financial inclusion that could provide lessons for the wider cooperative movement.
“We are trying to move around to sensitise, mobilise and create awareness among the general population that cooperatives are the way to go,” Aza said.
“We can never go unless we are united. United we stand, divided we fall. Let us continue with the cooperative movement spirit.”
According to Aza, the mandate of cooperative development is to facilitate an organised, self-reliant, democratically controlled and member-centred cooperative movement through effective regulation, continuous technical support and resource mobilisation.
He pledged continued government support to create an enabling legal and policy environment for the growth of autonomous and self-reliant cooperatives.
“We shall continue creating a conducive environment that will promote the growth of cooperatives, which are autonomous,” Aza said. “We shall ensure that you are autonomous, self-financing and self-reliant.”
He said the government would continue strengthening the legal and policy framework, registering cooperatives, enforcing relevant laws and building the capacity of human resources within the movement.
“We shall continue creating a good legal framework, good public policy, mobilisation, sensitisation and education of all cooperatives,” Aza said.
He said cooperatives remained important in improving household incomes, creating employment, strengthening access to financial services and markets, and improving the quality of agricultural produce.
“We shall continue registering cooperatives and enforcing the laws, providing support for capacitating human resources in cooperatives for development so as to help the poor achieve economic security, improve their standard of living and quality of life,” he said.
He added that cooperatives could help mobilise communities under programmes such as PDM, Emyooga, youth livelihood and women’s empowerment initiatives, while promoting collective marketing, value addition and economies of scale.
“That is why we form cooperatives,” Aza said.
The minister also challenged cooperative leaders to uphold cooperative principles and demonstrate strong leadership and governance in their day-to-day operations.
“Cooperative leaders should have loyalty, trustworthiness, honesty, good knowledge of the cooperative business model, objectivity and fairness, listening and consensus-building skills, a general business attitude and the ability to make logical judgements on a wide range of cooperative issues,” Aza said.
He added that good cooperative leadership should be characterised by transparency, accountability, teamwork, harmony, consensus orientation, efficiency and effectiveness, equity and fairness, respect for rules and regulations, strategic and visionary leadership, and the knowledge and skills required for management and organisational growth.
https://thecooperator.news/ica-calls-for-cooperatives-to-play-greater-role-in-peacebuilding/
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