Leaders of cooperatives, SACCOs, and Village Savings and Loan Associations (VSLAs) in the Bugisu sub-region have been urged to borrow responsibly and ensure loans are invested in productive ventures that can improve livelihoods and grow businesses.
The call was made during a regional loan clinic organised by the Microfinance Support Centre (MSC) at the Manafwa District headquarters.
Held under the theme, “Bringing Financial Inclusion to the Last Mile: Bridging the Credit Gap,” the loan clinic brought together more than 150 cooperative and SACCO leaders from over 40 SACCOs across the districts of Manafwa, Bududa, and Namisindwa.
Participants received training in SACCO management, compliance, business planning, bookkeeping, and loan application procedures aimed at helping communities access affordable credit and strengthen savings groups.
Speaking during the training, Manafwa District Commercial Officer Samuel Mandu said many SACCO members lack adequate knowledge about government credit facilities, limiting their ability to benefit from available financial opportunities.
“This training by the Microfinance Support Centre will bridge the knowledge gap among our people, especially regarding government loan products. The training has provided capacity building for our SACCOs in this area,” Mandu said.
He guided participants on how to prepare business plans, consult relevant government offices, and fulfil the requirements needed to access loans.
Mandu also emphasised the importance of responsible borrowing and accountability within cooperatives.
“We are emphasizing that you need to borrow with purpose and stick to the repayment schedule given to you,” he said.
He added that transparency and consistent saving are key pillars in building strong cooperatives capable of lifting members out of poverty.
“We’ve emphasized the need for transparency in managing the affairs of cooperatives and accountability so that members can know how well they are performing,” Mandu added.
According to him, about 15 groups have already applied for loans under the programme, although some SACCOs still face challenges related to delayed repayments.
Dennis Odeba from the Microfinance Support Centre said the initiative targets hard-to-reach communities that have previously lacked access to affordable financial services.
“Microfinance continues to bring services closer to communities,” Odeba said.
“These are hard-to-reach areas and communities that we have not served before.”
He explained that the loan clinics are designed to create awareness about the institution’s products and services while preparing SACCOs and cooperatives to qualify for funding.
Odeba said one of the major attractions for participants was MSC’s low-interest loans offered at 8 percent per annum on a reducing balance.
“Most of our products, if not all, are offered at 8% interest per annum, and it is on a reducing balance,” he said.
He noted that more than 80 percent of participants expressed willingness to work with MSC after learning about the available opportunities.
Odeba added that the institution is also working with local leaders, district officials, and the Ministry of Trade to revive collapsed cooperatives and help those with expired certificates renew their operations.
“We want to continue growing and reviving more cooperatives so that the cooperative movement becomes stronger,” he said.
Tony Kibalama from the Ministry of Trade, Industry and Cooperatives said cooperatives seeking loans must have proper leadership structures and clear approval from members before borrowing.
“As the Ministry of Trade, we have an obligation to assess eligibility to borrow by issuing a letter of maximum liability to the support centre,” Kibalama said.
He stressed the importance of member training, proper bookkeeping, and transparency in handling borrowed funds.
“It is important for members to first receive literacy training, especially in bookkeeping, before borrowing because this is borrowed money,” he said.
Kibalama warned that without proper financial management skills, cooperatives risk misusing and losing borrowed funds.
Assistant Resident District Commissioner Hanat Kasula commended MSC for prioritising financial literacy before extending loans to SACCOs and cooperatives.
She urged SACCO leaders to thoroughly assess businesses before approving loans and ensure members clearly explain how they intend to use the money.
Kasula said the affordable interest rates offered by MSC would help communities in Bugisu improve productivity and fight poverty through investment in agriculture and other income-generating activities.
