By Aggrey Twesigye
The Uganda Cooperative Alliance (UCA) has begun engagements with Savings and Credit Cooperative Organisations (SACCOs), unions, and area cooperative enterprises from the Ankole and Kigezi sub-regions as part of efforts to redevelop the recently revived Uganda Cooperative Bank.
The engagements were held during a meeting with cooperators at Rwizi View Hotel in Mbarara.
Speaking at the meeting, Ivan Asiimwe, Chairperson of the Board of the National Savings and Credit Cooperative Society, urged cooperatives across the country to embrace and join the cooperative bank, describing it as a key vehicle for strengthening the cooperative movement.
Asiimwe revealed that last year, the Uganda Cooperative Alliance conducted wide consultations with stakeholders on the revival of the cooperative bank, a process that received overwhelming support.
He noted that the bank was officially launched in April last year by President Yoweri Museveni and registered as a National Savings and Credit Cooperative Society.
According to Asiimwe, the revived bank currently has a portfolio of UGX 200 million. He explained that once members’ savings reach UGX 5 billion, the institution will be upgraded and registered as a Micro Deposit-Taking Institution under the regulation of the Bank of Uganda.
He added that when savings grow to UGX 150 billion, the bank will be transformed into a fully fledged commercial bank.
Opening a one-day workshop at Rwizi View Hotel, the State Minister for Cooperatives, Frederick Ngobi Gume, said the cooperative bank will enable cooperators to access affordable credit at lower interest rates compared to those charged by commercial banks.
The minister challenged cooperative leaders and members to prioritise value addition to their produce by leveraging financing from the national cooperative bank.
The Uganda Cooperative Bank, which previously provided crop financing services, collapsed on May 19, 1999.
