West Nile Teachers’ SACCO grapples with low savings
ARUA-West Nile Teachers’ SACCO is struggling with low savings, which leaders say has hindered the growth of the SACCO that can serve members as desired.
SACCO leaders attribute the sharp decline in savings to multiple borrowing by the teachers, high rate of teachers leaving the teaching profession, and high rate of retirement.
The society says that before 2016, they used to raise at least Shs 104 million annually in savings, but this has reduced to less than Shs 40mln.
The SACCO’s credit officer, Michael Abejoa, says the decrease in saving has reduced their capital base, meaning they are unable to provide more loans to members. “We find it very hard to give out loans to our members. The number of our members has reduced to less than 400 across the seven districts in West Nile Sub-region,” Abejoa said.
He added: “As a cooperative society, we have always discouraged our members from multiple borrowing from other financial institutions, but they don’t listen to our advice.”
Santos Andebo, the SACCO manager, observes that the reduced savings made it hard for them to help members during the covid-19 induced lockdown.
“During the two-year lockdown, members badly needed our help, but our hands were tied because of the reduced savings. Much as we tried to increase the interest rate from 18 percent to now 26 percent, it is not helping the situation. Actually, discussions about reducing the interest rates are ongoing,” he said, calling upon SACCO members to save more.
Macarious Adrole, the SACCO’s chairman board of directors, considers mobilisation of new members as a remedy to the reduced savings. “We are planning to go to all the constituencies in the seven districts to mobilise more teachers to join the SACCO. We are optimistic that if the number grows to more than 1,000 members as opposed to the current less than 400, our savings will greatly improve,” Adrole noted.
“We are also looking forward to partnering with microfinance institutions so that we can benefit from their support,” Adrole said.
West Nile Teachers’ SACCO, formerly West Nile Teachers’ Union, was founded and registered in 1972. The SACCO has members from the districts of Arua, Terego, Madi Okollo, Maracha, Yumbe, Koboko, and Arua City.
https://thecooperator.news/arua-district-official-upset-as-members-flee-saccos/
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