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Uganda Cooperative Alliance LTD - UCA



The majority of the members of the Uganda Cooperative Savings and Credit Union (UCSCU) are people who are traditionally excluded from the formal financial sector. They are engaged in diverse economic activities such as farming and teaching, while others are self-employed.

To maximise the contribution of the private sector to poverty reduction, Uganda has opted to use SACCOs, which trace their origin to informal savings created by people for centuries to help each other during difficult times.

The Government’s efforts to promote prosperity for all, through SACCOs, will undoubtedly promote development in Uganda. A recent survey by UCSCU shows that over 650,000 Ugandans depend on SACCOs for services which banks or other institutions cannot provide.

SACCOs teach their members democratic practices such as volunteering for the good of the community. Many rural people often ensure sustainability of natural resources such as biodiversity conservation and ecosystem management, which have increasingly attracted the attention of commercial interests.

The principles of self-help hold the key to economic and socio-cultural freedom for the rural poor, opening up the gates of a previously untapped reservoir of human enterprise.

Uganda’s experience so far gives us ample evidence that when the rural people form credit and savings cooperatives and effectively utilise them, they can make significant contributions to the social and economic development of their communities.

Cooperatives can pave the way to a more inclusive economic order and Ugandans need to effectively graduate them from an “experiment” to a widely-accepted standard of rural development financing.

The Government should, therefore, ensure the removal of institutional and policy obstacles that prevent SACCOs from seizing opportunities to improve the livelihoods of their members in ways that they, themselves, can sustain and expand.

From New Vision and writer from the Uganda Cooperative Savings and Credit Union