The economic empowerment capacity building training of South Division Lower Local Council Members in Fort Portal, Kabarole District was done in conjunction with Anne Manyindo of CARITAS Fort Portal on 2nd November, 2019 at Koi Koi village. This was during the launch and conference of South Division Lower Local Leaders Association (SOLIDA) that was officiated by the Minister of Local Government and Member of Parliament Mwenge Central in Kyenjojo District Hon. Tom Butiime.
Anne Manyindo in her presentation to participants highlighted how sustainable Saving and Credit Cooperative Organizations (SACCOs) are set up, emphasizing that a SACCO is a unique, democratic, member driven and self-help cooperative organization. She said SACCOs are legal bodies registered under the Uganda Cooperative Statute of 1991 and Cooperative Societies Regulations of 1992. They are formed to support their members with an opportunity for accumulating their savings and deposits and create a source of funds from which loans can be given to them for productive purposes at fair and reasonable rates of interest, there by enabling them to use and control their money for their mutual benefit and also ensure progress of members and societies through continuous education programs on proper use of credit, reduction of poverty, human dignity and cooperation among other objectives.
A section of participants during the capacity building session
While presenting Anne shared about SACCO membership highlighting that SACCO members are the owners and they decide how their money will be used for the benefit of each other and said that the minimum number of members required to register a SACCO under the current law is 30 people (Ministry of Trade and Industry).
Anne further explained how SACCOs work, their merits and demerits, registration process, challenges faced and principles of SACCOs giving examples like; participation, accountability, consensus orientation, efficiency and effectiveness, equity, strategic and visionary among others.
Anne Manyindo presenting to participants
She advised members and showed them what can lead to the collapse of SACCOS for example; bad governance, default of members, inadequate sensitization, closure of cooperatives and restructuring. She said it is the responsibility of government to care and make sure the structures and engines running the rural economy are well designed for success, financial sector is doing it’s work and that local governments in their locality are given financial services to support their development work. Local governments need to ensure that all SACCOs are well nurtured, supervised and overseen so that they can operate prudently and sustainably in order to ensure they do not collapse. While concluding her presentation, she gave tips for a successful SACCO sighting examples like; members must adhere to the rules and regulations, members should adhere to the memorandum of understanding they created together, decisions should be made as a team rather than individuals, electing people who will fulfill SACCO objectives in leadership, members should save as much as possible since this is their money refundable on ceasing membership among other tips.
The Minister of Local Government and Member of Parliament Mwenge Central Hon. Tom Butiime emphasized the need for people to remain united and having a side income which can support them instead of waiting for government wages which can never be enough to support their development work. The Minister advised and requested members to remain united, work hard and embrace government programs such that much funds can be invested in them from government and showed it that government is taking such direction of supporting people who are united in groups. The Minister contributed 1 million shillings cash and pledged more four millions as a contribution to begin South Division Lower Local Leaders Association (SOLIDA) SACCO.
The area Member of Parliament Hon Alex Ruhunda emphasized that many SACCOs have started and collapsed due to weak/incompetent leadership, low capital base, inappropriate loan security for members requesting for loans, lack of skilled personnel to manage the SAACO and lack of common interest among the members. He advised members to have savings in the SACCO as their first priority and pledged to lobby for funding from government and other people to achieve the objective of the SACCO as well as sustaining them.
Hon Alex Ruhunda sharing with participants
Participants were given time to ask questions after the presentation and their interaction speculated that they had understand the process of forming SACCOs and what is needed to sustain them.
A participant asking questions after the presentation: and on the other side a participant sharing what she grasped from the training
There was participation of LC III-South Division Hon Herbert Mugisa, Mayor Fort Portal Municipality Rev. Kintu Willy Muhanga, Resident District Commissioner Mr. Asiimwe Stephen, District Chairperson Kabarole Mr. Rwabuhinga Richard, representatives of different religious denominations and other invited guests including local leaders and citizens from outside South Division.
