International Day of cooperatives celebrations

COOPERATIVE  WEEK ACTIVITIES

The 102nd International Cooperative Day, which coincided with the 30th United Nations International Day of Co-operatives, was celebrated on 20th July 2024, at Misanvu Demonstration, Church of Uganda Primary School Grounds in Kibinge Sub-County, Bukomansimbi District.

The Theme of this year’s celebrations, “COOPERATIVES BUILD A BETTER FUTURE FOR ALL” is an endorsement that Cooperatives are key to building an inclusive economy for all. The theme was inspired by the Cooperative Values of Self-help, Self- responsibility, Democracy, Equality, Equity,  and Solidarity, coupled with the ethical values of Honesty, Openness, Social Responsibility and Caring for others.

The celebration of the Cooperatives Day was preceded by the Cooperatives Week which had the following activities;

1. Moday we had National Prayers by the Inter Religious Council at Hotel Africana.

 

2. Tuesday we had the Press conference at Uganda Media Centre.

    

3. Wednesday we had;
4. a) Tree planting at Victorious Senior Secondary School, Buwangala, Nawaikoke Sub-Country, Bulamogi County in Kaliro District

              

1. b) Blood Donation exercise which was carried out country-wide together with Uganda Blood Transfusion Services in different regions; Central, Northern, Mid western, Eastern and Western Uganda.

   

 

1. c) National Microfinance and Savings groups conference at Hotel Africana.
2. Thursday 18th July 2024 there was;
3. a) The commissioning of Uganda Federation of Community Cooperatives -MG Offices in Buwama Trading Centre in Mpigi District
4. b) The launch of the medical camp at Misanvu Demonstartion Church of Uganda Primary School Grounds in Kibinge Sub-County in Bukomansimbi District.
5. c) Sports Gala at Misanvu Demonstartion Church of Uganda Primary School Grounds in Kibinge Sub-County in Bukomansimbi District.
6. d) Launch of Exhibition at Misanvu Demonstartion Church of Uganda Primary School Grounds in Kibinge Sub-County in Bukomansimbi District.

DAY FIVE ACTIVITY; NATIONAL COOPERATIVE SYMPOSIUM AT MAPLE LEAF HOTEL, MASAKA CITY ON 19th JULY 2024.

This year’s celebrations included a comprehensive symposium Held in Masaka at Marple leaf hotel on 19^th July 2024 that brought together cooperative members, leaders, experts, and stakeholders from various sectors. The symposium served as a platform to discuss different cooperative related topics about the achievements, challenges and future directions of the Cooperative movement.

The National Cooperatives Day Symposium is an annual event that brings leaders of cooperatives together to discuss issues affecting the sector before the International Cooperatives Day celebrations that are held on 20 July every year.

 

The Symposium was opened by Owekitibwa Robert Waggwa Nsibirwa and in his remarks he thanked UCA for the partnership they have with Buganda Kingdom and encouraged Government to support Apex bodies of cooperatives he added that

"Government should work with the current cooperatives that have been atleast in existence for 5 years instead of giving cash money to the citizens to form SACCOS without any knowledge to sustain the SACCOs hence failing Government proects"

• On behalf of Katikiro of Buganda Owekitibwa. Charles Peter Mayiga, the Buganda Minister of finance Owekitibwa. Robert Waggwa Nsibirwa delivered the speech where he emphasized that the kingdom of Buganda should focus on mobilizing people to work together through cooperatives to lift themselves out of poverty.
• He emphasized the need to let government work with the current cooperatives that have been at least five years in existence instead of giving liquid money to the citizens to form cooperatives without knowledge to sustain the projects hence failing government effort to fight poverty.
• In his speech he also requested the government to refrain from taxing SACCOs and allowing their members to earn profit on their savings and access affordable loans to invest and improve their welfare.
• He further noted that simply giving citizens money will not eliminate poverty instead he encouraged the government to educate citizens on forming Cooperatives and promote financial literacy to improve the savings culture.

 

 

The State Minister for Trade Gen Mbadi said

“Şince 1913, when cooperatives were first established in Uganda, the intention was to fight the exploitation of farmers and producers from middlemen through a unified action. Over time, cooperatives have somehow deviated from the main objectives for which they were formed,

He urged leaders of cooperatives to refocus their efforts towards industrialization, creating an environment that enables cooperatives to perform well, develop relevant products, and offer affordable financial services

The Minister made the remarks at the closure of the National Cooperatives Symposium that was held at Maple Leaf Hotel in Masaka.”

 

The Minister of State for Cooperatives, Hon. Gume Fredrick Ngobi, announced that the formation of the Cooperative Bank is in its final stages and called upon the leaders of cooperatives to mobilize their members to buy shares so that the operationalization of the bank can be fast-tracked. He urged farmers to enhance crop value addition to counteract exploitative middlemen, emphasizing access to markets facilitated by initiatives like the African Continental Free Trade Area.

"If you add value, you will also be able to exploit the market opportunities such as East Africa community African continental free trade area among others. Now like the coffee, which is being exported, it is also earning a lot of money to people in increasing our economic days," he said.

 

Access to affordable and appropriate Finance by Prof.Ezra Suruma :

Prof Ezra Suruma, who gave a keynote address at the symposium, decried the dominance of foreign Contact us ommercial banks in the economy. "No country can mobilize resources needed for development without having control of the financial sector of the economy. This is akin to someone else controlling your blood flow." said Dr Suruma.

• Ezra Suruma in his speech he remarked on the dominance of foreign commercial banks in the economy.
• He said, “No country can mobilize resources needed for development without having control of the financial sector of the economy. This is akin to someone else controlling your blood flow”, he said as he presented the following ;

The Cooperative Banking Model.

Capital is the economic blood; it is necessary for the production of goods and services.

1. The production of any product requires land, labor and capital
2. Finance enables us to obtain land, labor and tools or machinery
3. Capital is “the blood” of the economy
4. Those who are controlling capital are controlling our “economic blood”
5. How can we change this scenario?

Traditional methods of raising capital.

1. Accumulation of personal savings
2. Sale of assets such as land or buildings
3. Savings bank deposits
4. Commercial bank deposits
5. savings and credit cooperatives (Saccos)
6. sale of shares and stocks
7. partnerships
8. public financing (govt loans and grants)

The problem of accessibility and cost of capital, a historical context

1. Its privatization to foreigners reduced the access of Ugandans/Africans to finance.

The cost of capital.

1. Interest rates rose to 45% in the early 1990s.
2. The sale of UCB as a ‘dominant’ was alleged to lower interest rates.
3. Interest rates fell as inflation fell but not as low as expected.
4. This is because of oligopoly in the sector.
5. The weakness of the Central bank
6. Instead of increasing competition in the sector it keeps shutting down Ugandan banks thus strengthening the oligopoly.

The Uganda Cooperative Bank suffered from mainly three Strategic Weaknesses;

1. Mismanagement
2. Fraud
3. Solutions to these problems.

Digital technology

• The introduction of digital technology may help to alleviate these problems
• A stronger regulatory authority

Strategy to revive capital accumulation in Ugandan cooperatives.

1. Strengthen the regulation of SACCOs
2. Increase the application of technology in SACCOs
3. Register the cooperative bank afresh and encourage all the 18 million members to become shareholders
4. Start with a credit institution level instead of a full-fledged commercial bank
5. Capital requirements are lower for credit institutions

Raising capital for the cooperative bank through shareholding

Benefits of starting as a Credit Institution

1. No need to wait for the government
2. The cooperative will enjoy freedom from government intervention in management
3. The benefits of being a member of the clearing house have been offset by modern technology
4. The capital requirements are feasible

Real sector back up for the Cooperative Bank

1. Having cooperative stores at every parish will strengthen marketing for members
2. Members should have contracts to supply the cooperative stores at a specified price
3. This will avoid destructive price falls
4. Cooperative stores will in turn seek market contracts with schools, government and external markets

Access and cost of capital strategy

1. The board of the cooperative financial institution will set policy for management to follow
2. The policy will focus on easier member access to capital
3. The board will also set guidelines for the interest charged to members
4. If the board fails to set appropriate guidelines for access and cost of capital they will be voted out of office by members at the annual general meeting (agm).

Conclusion

1. The model for the formation of a national cooperative financial institution appears to be feasible.
2. Members need to be persuaded to buy the shares to capitalize the bank
3. Members should also unite to support the political leaders who support the cooperative movement.
4. Given the large number of members in the movement their united voice will be effective in protecting their bank from unfair attacks and threats.
5. We are fighting for survival.

 

 

The General Secretary of Uganda Cooperatives Alliance, Mr Asiimwe Ivan appreciated the government's support that has facilitated the thriving of cooperatives in Uganda. He encouraged cooperators to use the knowledge and skills they acquired through such engagements to develop the country and continent as a whole.

Remarks on a community self-driven transformation approach; The case of Sae Maul Geumgo” presented by Mr. Kyepa Andrew, CEO-UFCC.

Community Credit Cooperatives Operating Principles (Heart of the Community Credit cooperatives)

• Self help
• Cooperation
• Savings (Savings led)

Growth of the Community Credit cooperatives

• Member productivity
• Low interest loans
• Increased savings
• Seed capital

Results of the Community Credit cooperatives

• Enhance member’s lives
• Local Community development
• Contribution to industrial development

 

Remarks from Wazalendo SACCO Chief Executive Officer, Col. Joseph Onata.

The Wazalendo SACCO Chief Executive Officer, Col. Joseph Onata urged the leadership of the Ministry of Trade, Industry and Cooperatives to fast-track the streamlining and harmonization of the legal ramework governing cooperatives for the growth and sustainability of the sector.

Col Onata equally implored cooperatives to focus on corporate governance and improving the livelihoods of their members as a basis for growth and sustainability. "Mismanagement and corruption have prevented cooperatives from progressing. As leaders and managers, we need to fight these two evils and protect members' savings and interests."Onata said as he presented the topic in “Balancing institutional growth and member benefits” presented below

Why cooperatives are formed

1. Improving welfare of the members

2.Protecting members from exploitation through collective bargaining

3. Creating a source of funds where members can borrow at affordable rates
4. Enabling the members to be productive so as to prepare for life when they are no longer productive
5. Providing a platform for collaboration for solving common problems

Social objective Vs Business objective

• Cooperatives by definition pursue both the social objectives and business objectives
• For sustainability there is need to pursue a balance between the business objective and the social objectives
• There is always temptation to drive the business objective at the expense of the social objective. (Mission drift)

Key observations

• Cooperatives sector continues to grow
• Economy is getting sectorized
• SACCOs are dominant in the cooperative movement
• Government focus on cooperatives is high
• Agricultural sector is growing
• Value addition is picking up
• Numerous opportunities for our SACCOs to tap in
• Collect more detailed data on each sector
• Being intentional to mobilize SACCOs to embrace the union for the power to bargain together

Key member benefits in cooperatives

• Opportunity to save together
• Access to affordable financing
• Access to Technology and financial solutions
• Education training and information
• Rewards on investment (sharing surplus)
• Funding for big capital investment
• Skills transfer
• Marketing for products
• Collective storage facilities
• Improvement in household income

Limitations to balancing growth and member benefits

• Lack of accurate records and data
• Limited training and information
• Governance gaps
• Over emphasis on surplus, interest and dividends
• Poor marketing strategies
• Highly priced services
• Inability to adapt modern business technologies
• Inability to control costs
• Dependence on borrowed capital, grants and donations

 

 

Remarks on Investing in Cooperative Education to spur Inclusive & Sustainable Growth by Prof. Rachel Mindra Katoroogo

Reflecting on Implementation of Cooperative Principle #5

Co-operatives provide education and training for their members, elected representatives, managers, and employees so that they can contribute effectively to the development of their co-operatives. They inform the general public –particularly young people and opinion leaders –about the nature and benefits of co-operatives.

Cooperatives: Contribution to Sustainable Growth

• Cooperatives are well-placed to contribute to sustainable development’s triple bottom line of economic, social, environmental objectives plus the governance agenda
• They offer an alternative model for social enterprise, with contributions to sustainable development well beyond job creation.
• As value-based and principle driven organizations, cooperative are by nature a sustainable and participatory form of business.
• Cooperatives foster democratic knowledge, practices and social inclusion & have shown resilience in the face of the economic and financial crises.
• Significant cases that demonstrate the need for cooperative education to address governance, management, operational & strategic gaps/challenges

Cooperative Education

• Co-operative education is viewed as the cornerstone for successful co-operative enterprises.
• It is process of acquisition of specific skills needed to run a cooperative enterprise, first as a business organization and second as a social enterprise. (Chambo,2009)
• Co-operatives are formed to improve the economic, social and cultural conditions of the members – we add the social dimension of the enterprise different from other forms of organizations in the public and private sectors
• A work-integrated learning experience, cooperative training offers a structured program that combines classroom-based and work-based learning.
• It involves cooperation between vocational training institutes and partnering enterprises – Partnerships.
• Cooperatives like any other business entities require skills which do not exist in most societies
• Cooperative education is a pre-requisite for development of a strong, effective and successful cooperative movement
• The low level of education (particularly cooperative education) has been considered among the reasons for underperformance of many Cooperatives
• Basing on the changing nature of science and technology whereby the world now is fast moving to the intensive use of ICT and its applications, uneducated personnel are considered as incapable resources for running cooperatives  in the modern world.
• Likewise, uninformed members in the contemporary world are very dangerous in the sustainability of cooperatives (Lema & Mutagwaba, 2018; Raphael, 2019).   

Forms of Offering Cooperative Education.                                                      

• Cooperative Education is offered by designated training institutions or individual experts.
• These forms include a combination or one of the following:
  • Self-directed learning guided by organized tutoring
  • Networking especially through peer learning (learning circles)
  • Workshops, seminars, conferences or Tailor Made Programmes (specific theme/need)
  • Training of Trainers
  • Open and Distance Learning (ODL) (e-learning)
  • Long-term academic training leading to award of accredited certificates

Functional Areas of Engagement

• Facilitate formation processes of cooperatives and other member-based organizations;
• Establish linkages, partnerships and collaborations in providing education and training to the cooperative movement.
• Promote cooperative development through educating the rural and urban communities on cooperative theory and practice
• Facilitate organization and technical support in production, value addition, collective bargaining and improved marketing of goods and services
• Develop skills, knowledge and right attitudes through training, mentoring, coaching and advisory service to foster effective management and organization of cooperatives and other member-based organizations;

Operations of Co-operative Training Institutions

• Co-operative education is conducted by various providers;
  • Training institutions (universities, colleges)
  • The movement
  • The government
  • NGOs
  • Consultants
• These providers employ variety of methods and curricula in conducting cooperative education & training

The Benefits of Cooperative Education

• Enables understanding of principles and regulations used in running cooperative movements.
• Promoting active member participation in cooperative activities.
• Enhances the understanding of principles and regulations underlying the cooperative movements.
• Reduces conflicts among cooperative members
• Enables members to understand their rights and responsibilities.

This understanding of the cooperative framework is important for survival of cooperative organizations, decision-making and daily operations.

Enhancing Skills and Competencies

For Leaders

1.  Leadership Training: tools needed to guide their cooperatives effectively.
2.  Strategic Thinking: Develop and implement strategic plans that align with the goals of inclusive and sustainable growth.
3.  Innovation and Adaptability: Exposure to new ideas and practices fosters innovation and adaptability- drive change and improvement within their cooperatives.

For Members

1. Practical Knowledge: hands-on experience, application of theoretical knowledge in real-world scenarios- improve efficiency and productivity within cooperatives.
2. Skills Development: leadership, problem-solving, and teamwork, which are vital for the effective functioning and growth of cooperatives.
3. Professional Growth: members remain updated with industry trends and advancements, enhancing their professional development and career prospects.

 Promoting Inclusive Growth

• Economic Empowerment: CE improves governance and operational efficiency hence economic stability within communities.
• Social Equity: CE promotes social equity by ensuring that all members have equal access to learning opportunities, fostering a sense of community and shared responsibility.

Driving Sustainable Growth

• Skilled Workforce: creates a skilled and adaptable workforce capable of driving economic growth and stability.
• Business Development: Development of new business ventures and the expansion of existing ones
• Empowerment: enhances their ability to participate actively in their cooperatives and communities, promoting social cohesion and resilience.

Recommendations for Moving Ahead Sustainably

For Cooperative Members

• Engage in Continuous Learning: Actively participate in cooperative education programs to enhance skills and knowledge.
• Engage in Continuous Learning: Actively participate in cooperative education programs to enhance skills and knowledge.

For Cooperative Leaders

• Invest in Education: Allocate resources to develop and sustain cooperative education programs that benefit all members.
• Promote Inclusivity: Ensure that education programs are accessible to all members, including those from disadvantaged groups.

For Policymakers and Stakeholders

• Supportive Policies: Develop policies that support the growth and development of cooperative education programs.
• Funding and Resources: Provide funding and resources to educational institutions and cooperatives to facilitate the implementation of cooperative education programs
• Inclusive Community Finance through Greater member benefits
• Local economythrough enhancing enhance the economic benefit
• Social fabric through enhancing social benefit

Community Credit cooperative organisational principles

• Locally organising which aims at making every stakeholder involved through tap into existing community resource
• Local School through financial mind-set programs by developing local educators/champions
• Community Credit Cooperative Community founded, owned & Managed through building local capacity to run the cooperative
• Community welfare programs by establishing a community welfare fund through supporting Community development projects.

6. International Day of cooperatives celebrations

The president who was represented by  third Deputy Prime Minister Rukia Nakadama,  Speaking during the Cooperatives Day at Misanvu Church of Uganda Primary School grounds in Kibinge subcounty, Bukomansimbi district, reiterated the NRM government's commitment to bolstering cooperative enterprises nationwide.

President Museveni has said the NRM government will continue supporting cooperatives around the country.

He also highlighted the remarkable growth of cooperatives in Uganda, from 5,521 in 1986 to 45,283  as of April 2024.

The president reaffirmed government's strategic alignment with wealth creation initiatives such as Operation Wealth Creation and the Parish Development Model, underscoring a supportive legislative framework to foster cooperative growth.

 

The event also saw appeals for the restoration of a cooperative bank to better manage cooperative funds and calls for elevated educational standards at cooperative schools to nurture professionalism among Ugandans.

"Cooperators countrywide anonymously passed the resolutions that they want back their cooperative bank and  on that note, cooperators countrywide resolve  that they are ready to put in their money because they have the capacity now,'" said Jonathan Tweyambe, the Board  chairperson of Uganda cooperative alliance.

Bukomansimbi South MP Geoffrey Kayemba Ssolo urged government to redirect funds from programs like Emyooga and the Parish Development Model (PDM) towards cooperatives to maximize benefit for Ugandans.

Amidst the festivities, concerns surfaced regarding the participation of Bukomansimbi district cooperatives.

 

The state Minister for Microfinance Haruna Kyeyune Kasolo urged Bukomansimbi residents and everyone across the country to embrace cooperatives as a pivotal tool in poverty eradication.