The Microfinance Support Centre has said Ugandans will get skills to run successful Savings and Credit Cooperative Societies (Saccos) as part of the Emyooga presidential initiative on wealth and job creation.
Speaking during the launch of the new poverty eradication scheme at Hima town council headquarters in Kasese district on Wednesday, James Muhwezi, the manager in charge of business development services at the Microfinance Support Centre said whereas many people have an idea about saccos, many don’t have skills to run them.
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“We think there is need for a more technical training especially on how to run saccos for this new program since it involves seed capital from government. Members will be saving and this will be a strong pillar in the wellbeing of these saccos, therefore, members must be trained properly on how to manage monies, save and borrowing,” Muhwezi said.
“If we don’t train them technically, all the effort that government has initiated will have gone to waste.”
He explained that apart from members, even leaders of the various saccos ought to know and appreciate their roles for their smooth running and wellbeing.
Despite, the new saccos to be formed through the new poverty eradication scheme, old saccos are also encouraged to continue in existence and according to the Microfinance Support Centre official the skills from government will beneficial for members to run all saccos including those that are not part of the Emyooga project.
“The skills will make them appreciate that being members in different saccos is not a problem but borrowing and not being able to pay back the loan is a problem that may lead to collapse of the sacco.”
Since 2005 to date, government has embarked on the promotion Saccos as a means of improving household income through the provision of access to the financial services to the poor.
Consequently, many Saccos have formed countrywide but with a sole target of targeting government cash in form of seed capital.
Because many didn’t have strong member bonds and institutional structures, they have collapsed or are on the verge of collapse.
Many have been run down by their managers whereas many members don’t know their roles in the saccos.
However, according to officials from the Microfinance Support Centre, as part of the new poverty eradication program, members of the public will be given skills on how to effectively run saccos before government can provide them with seed capital.
The State Minister for Finance in charge of Microfinance, Haruna Kasolo recently said the main aim of the new poverty eradication program is not giving money to Ugandans but teaching them the saving culture.
