Storage facilities for cooperative syndicates will get a makeover
GOVERNMENT | STORAGE | COOPERATIVE
The government is set to rehabilitate dilapidated storage facilities owned by cooperative unions across the country to enable them to introduce the receipt system.
Minister of State for Cooperatives Fred Gume said that under the receipt system, farmers will be able to deliver their produce to silos during the bumper harvest, where they will receive receipts which can enable them to access funds from banks while waiting for prices to rise. ascend.
Gume made the remarks during the nationwide launch of the Capacity Building Program for SACCOS and Small and Medium Enterprises (SMEs), which was recently attended by members of the New South Bukedi Cooperative Union (SBCU) at the Rock Classic Hotel. , Tororo.
The ceremony was organized by Stanbic Bank, in partnership with the Alliance for a Green Revolution in Africa (AGRA) and the Reign Business Development Agency.
Gume said the government will compensate SBCU for the loss of its property. He warned leaders against embezzling members’ savings.
“At meetings, the agenda is extended so that financial statements and audit reports are discussed last. It’s a fraud because the members are usually exhausted at that time,” Gume said.
“Don’t force people to falter in the cooperative movement by borrowing money to marry more women. You must learn to save because you will never succeed. The danger of being poor is that you will have less influence in society,” he said.
Emma Mugisha, the chief executive of Stanbic Bank, said it would offer loans to counions operating at 10% per year, translating to 0.8% per month, improve their efficiency by digitizing their operations and continue to build their capacity to improve their knowledge of SACCOS management.
Mugisha said the bank has built a loan portfolio of sh15b, where western Uganda has taken 50%, eastern 20%, central 28%, while northern has less than 5%.
She said each SACCOS can apply for unsecured loans of up to 200 million shillings. Mugisha called on members to mobilize more SACCOS to benefit.
Dr John Jagwe, National Director of AGRA, said he was happy that Stanbic Bank could lend to cooperators at favorable rates. He said they will continue to extend training, extension and financial services to farmers to improve their farming practices.
Geoffrey Ekanya, chairman of the board of SBCU, said they were determined to take the cooperative to another level and called on members to mobilize more people to join the cooperative movement.
John Okeya, the chairman of Tororo, called on the members to form a joint venture as cotton farming, which was once a major cash crop, is no longer widely grown.