Armstrong Abdubango, Dikiri Kabucan SACCO (micro credit co-operative)
CCA-UCA
partnership promotes trusted places to save, borrow, insure
Robberies were common. Some lost all the money they tucked away when fire burned their thatched clay huts. Savings were buried and never found after a family member died, having failed to disclose the money’s location. Savings were even eaten by rats, lured by the smell left on the bills by previous handlers, like fish mongers.
Those that did their
banking at commercial institutions were frequently ripped off. Some were “very embarrassed”,
in the words of Brecco SACCO members, to discover that their meagre savings had
disappeared due to high “service” charges on their accounts. Often they were
refused loans, being part of the rural poor that were deemed “unbankable” by
the private sector banks. In addition, the distances that separated them and
the banks made it too costly for most to do anything but make sure their money
was well hidden from thieves and rodents.
Olivia Mugisa, Brecco SACCO treasurer acknowledged “you can’t do your banking at home.” However, the rural poor had limited options when it came to savings and loans.
Trusted places
One of its main thrusts was to encourage the formation of SACCOs, community-owned savings and loans
institutions that provide poor and middle class households with trusted places
to save, borrow and insure.
In the decade that has followed the launch of IFAPI (Integrated Finance and Agriculture Production Initiative), the number of SACCOs has increased from eight to 22 in northern Uganda. These democratically-controlled, member-owned centres now play a significant role in the socio-economic development of the communities they serve.
“Now
we know how to sell our products,” said Brecco SACCO member Stella Kannyege.
“We know how to save money and pay it back. We know how to control our
businesses. And we know how to build groups.”
The
ripple effect of these micro credit co-operatives has spread throughout northern
Ugandan society.
Impact on women
Louis
Odhur, a widow and farmer in Omoyo, said her SACCO’s promotion of gender
equality has had a positive impact on the women in her community. “They do not
fear things now. When there are meetings they attend. It has given them
courage.”
“People can now take care of their lives and control of their own destiny,” Chegere SACCO manager Peter Aceny said. “We say no more going back. We are moving forward. We are continuing until reach our destination – sustainability.”
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