In the face of a syndrome jeopardising Savings and Credit Cooperative Organisations (SACCOs), experts have highlighted mismanagement, embezzlement, and inadequate strategies leading to the downfall of many SACCOs.
They called for urgent reforms, emphasising the effective utilisation of SACCOs to boost share capital and financial stability.
During the launch of the Hoima City Tax and Bus Park Drivers SACCO on December 31, 2023, at Kolping Hotel Gardens, Dr. Patrick Mwesigwa Isingoma Obama, Member of Parliament, for Hoima- East City Division, stressed the importance of saving to generate profits through responsible borrowing.
With a pledge of sh5m to enhance their financial foundation, he cautioned them against financial indiscipline that could lead to resource misappropriation and collapse.
“Follow the rules and be accountable to each other,” he added.
Hoima district Chairperson, Uthuman Mubaraka Mugisa, said the drivers saw it prudent to start a SACCOs as a means for them to invest in opportunities like the soon booming airport transport business as Hoima International Airport nears completion.
Dr. Emmanuel Kiiza Aliba, Uganda Microfinance Support Centre board chairperson, expressed his organisation’s commitment to supporting the SACCO by providing resources, digitalising processes, and offering low-interest loans at 8% per annum.
Humfrey Mugisa, Chairperson of Hoima Tax and Bus Park Drivers Association, revealed the SACCO’s mission to improve members’ standards of living through low-interest credit.
While expressing a need for additional share capital, he called upon leaders to help capitalise the SACCO to facilitate investments in the thriving tour and travel industry amid Hoima’s economic upswing due to oil and gas which was discovered in the area in 2006 and is now at development phase.
He said out of the 500 drivers operating in the two parks, so far 200 have registered as members.
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