By UCA Team
The General Secretary of Uganda Cooperative Alliance Limited, Mr. Asiimwe Ivan has on Friday signed a memorandum of understanding with Housing Finance Bank to make it easy for its members of the alliance to acquire bank services at friendly terms.
The Memorandum of Understanding will among others facilitate the financial growth of the members of the alliance.
“The purpose for this is to establish a scheme where the Bank will offer its loan facilities, other Bank Products and services to the eligible cooperatives under the Alliance” MoU reads in part.
Mr. Asimwe said that the MoU focuses on a broader perspective in line with Uganda’s National Finance Inclusion Strategy for promoting financial inclusion and the development of the financial infrastructure.
“We want to deepen and broaden formal savings, investment, and insurance usage,” he revealed after signing on the dotted line.
He said that the agreement aims at including over 10 million people majority of whom are engaged in agricultural value chains.
“Under this partnership, we and Housing Finance Bank (HFB) will mobilize cooperatives, provide them with capacity building to ensure that they are bankable and their members get insurance,” Mr. Asiimwe said.
Speaking at the ceremony the Executive Director of Housing Finance Bank, Ms. Peace K Ayebazibwe was quelled fears that a section of SACCO members tend to hold and hence reluctant from getting money from Banks.
“We (HFB) will offer wholesome lending to the SACCOs so that they can lend to their members,” She said.
She noted that the Memorandum of Understanding will grow Agent banking in the countrywide and beyond.
In a rejoinder, the Managing Director of Housing Finance Bank Mr. Michael Mugabi also said that the partnership has come at a time when housing is in high demand due to the high level of urbanization.
“Uganda has one of the fastest-growing populations in Africa this calls us to enable Ugandans to meet their housing needs to absorb the young population,” Mr. Mugabi said.
The Alliance also believes that the partnership will deliver it back to the lost glory of the 1960s.