SACCOs - Will they deliver?

In the budget speech of 2006/07 Financial year, the Hon. Minister of Finance said, “In a bid to further bolster the level of savings mobilization and investment among the poor, Government adopted the strategy of supporting member – used and member – owned financial institutions, commonly referred to as Savings and Credit Cooperative Organisations (SACCOs). The objective has been to assist communities to start and operate these institutions for financial service delivery at the sub – county and subsequently at the parish level.
In 2005 the Government embarked on the policy of creating a financial infrastructure throughout the country so that all people can have access to safe financial institutions in which they can save their money. This program is expanding steadily and has now reached 800 sub counties out of 1020 expected to be covered. The Minister was confident that a revolution in the financial landscape of Uganda is underway and that it will be for the great benefit of Ugandans.
Ethics in banking related business – are essential for the long term success of business and it is therefore important to inculcate moral and ethical values. There is urgent need for training, awareness and technical assistance to member associations in Uganda (AMFIU) study.
In the 2008/09 Budget Speech, the Hon. Minister tripled the resources for microfinance from shs 10bn to shs 32bn. In the same budget the Hon. Minister said, “Bank of Uganda approved five new private commercial banks to start operations. The entry of new banks has stimulated competition in the sector, resulting in expansion in the branch network from 160 branches by end of March 2008. The deposit base of banks increased by 26% from 3,175 bn in March to shs 4,014 bn in March 2008.