Microfinance Support Centre kicks off countrywide training on running Emyooga Saccos

The Microfinance Support Centre has kicked off countrywide training for established saccos under the Emyooga presidential initiative on job and wealth creation.

According to James Muhwezi, the Manager Business Development Services at the Microfinance Support Centre, the objective of the training for the already formed saccos is for members to properly understand the concept of the initiative and harmonizing the key messages of the Emyooga.

“This training will help associations to appreciate the principle of savings, group dynamics, credit management and mindset and working in cooperatives as a foundation for job and wealth creation. It will also prepare them(saccos)  to facilitate the establishment of the structures to effectively manage the Emyooga fund,” Muhwezi noted.

Since 2005  government has embarked on the promotion of Saccos as a means of improving household income through the provision of access to financial services to the poor.

However, a number of SACCOs have collapsed over a number of reasons but according to Muhwezi, the current training for Emyooga SACCOs can be applied by members to their other SACCOs.

“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 the collapse of the Sacco.”

 

He explained that this is the most critical phase of the program, noting that the training is being conducted by the Ministry of Trade, Ministry of Finance and the Uganda Cooperative Alliance in conjunction with the Uganda Microfinance Support centre.

The Emyooga initiative targets Ugandans especially in the informal sector who come together in form of saccos under 19 clusters including Boda boda riders, taxi drivers, restaurants, welders, market vendors, women entrepreneurs, youth leaders, people with disabilities, journalists, performing artists, veterans, fishermen, and elected leaders.

Each of the saccos will receive shs30 million as seed capital, save for the private teachers and leaders that will each receive shs60 million and 50 million respectively.

The program is part of the broader NRM principle of socio-economic transformation in which the government has committed 68% of the country’s homesteads, currently in the subsistence of market-oriented production.