Mayuge Sacco savings grow from Shs6m to Shs28b

The savings for Bugadde Cooperative, Saving and Credit Society Limited (Sacco) has grown from Shs6 million since its inception in 2005 to Shs28 billion.

The chairperson Board of Directors of Bugadde Sacco, Mr Robert Mugabi, explained that on top of Shs900,000 from the members’ savings recorded at its inception, the government gave the Sacco Shs5m as seed money.

“It is now 19 years since the inception of the Sacco. The savings have accumulated to Shs28b. Government gave us seed money 15 years ago and the cheque was handed over to us by the former vice president, Ms Specioza Naigaga Wandera Kazibwe. We have managed to multiply this money to billions,’’ he said.

Mr Mugabi explained that the Sacco’s savings increased over the years because it attracted more members, from the 32 at inception to 56,000 currently.    

He said membership fee is Shs35,000 and the minimum savings balance is Shs20,000 while loans attract a monthly interest of 2.5 percent. 

He, however, said some are not active due to loss of livelihoods, especially the fishing community.

“Many of the youth who were saving with us stopped because they were fishing on the lake but the government halted all the activities. They are currently jobless,’’ he said.

Mr Mugabi said the Sacco has solved the issue of unemployment both directly and indirectly.
“So far 144 workers are employed by the Sacco and thousands have benefited indirectly,’’ he said.

Mr Richard Moses Sala, a resident of Butebere Village in Bugiri District, who has been a member of the Sacco for five years, said he has been able to get a motorcycle on loan and Shs10m, which he used to stock his drug shop.

Mr Rashid Kwagala, a resident of Namutumba District, said: “I joined the Sacco in 2008 but I managed to construct my house, bought a pickup truck and paid school fees for my children.”

Mr Mugabi said apart from membership fees and interest charged on loans,  the Sacco’s savings have also grown due to tax holidays by the government.

“Government does not charge taxes on Saccos for 10 years…since January we have not been paying withholding tax and we ask the government to continue exempting us from taxes so that we continue expanding our savings,’’ he said.

Mr Mugabi said they have also promoted transparency and accountability, which has made people’s savings very safe.

“All the Sacco leaders are exemplary and transparent,’’ he said.

Mr Mugabi said he wants Bugadde Sacco to become one of the financial institutions owned by Ugandans.

Mr Patrick Lwokyaza, concurred with Mr Mugabi, saying the government should upgrade the Sacco to a commercial bank so that it can expand its financial services to the community.

“Since its inception, it has helped vulnerable women with loans to pay their children’s school fees because most of them are single mothers. It has enabled fishermen to secure loans to buy standard fishing nets and many youth have been able to acquire motorcycles,’’ he said.

Mr Lwokyaza said the Sacco has taken over the role of collecting garbage in Mayuge as part of social corporate responsibility.

The chairperson of Mpongwe Sub-county in Mayuge District, Mr Hamisi Magumba, said Bugadde Sacco is one of the few Saccos that are still surviving. 

“They give out their loans and monitor them until they are all cleared. Most Saccos collapse before their first birthday,’’ he said.

The Busakira Sub-county chairperson, Mr Silver Wabula, said the Sacco has improved the livelihood of most of the residents in the area.

“Sugarcane farmers are provided with loans, youth are able to secure motorcycles on loans and most of them now are employed. If the government continues funding this Sacco, More people are likely to benefit,’’ he said.

As a way of responding to the government plans and arrangements to fight poverty in Uganda, Bugadde Sacco was formed in 2004 by a group of 32 grassroots members based in Kityerera Sub-county in Mayuge District and was registered on January 11, 2005.

Bugadde Sacco currently has nine branches in eastern Uganda with its headquarters in Mayuge Town.