For many aspiring entrepreneurs, the biggest obstacle to starting or expanding a business is not a lack of ideas but limited access to affordable capital. While conventional banks often require substantial collateral and impose stringent lending conditions, Savings and Credit Cooperative Organisations (SACCOs) are emerging as an alternative source of financing, enabling Ugandans to transform business ideas into sustainable enterprises.
By pooling members’ regular savings, SACCOs create revolving funds that allow members to access affordable loans based on their savings history. The model is increasingly supporting entrepreneurs to purchase equipment, stock businesses, and invest in skills development.
Speaking on Omukeze, hosted by Umaru Kikaye, the National Chairperson of the Supreme Council, Hajjat Sophia Safina, described SACCOs as institutions that extend beyond financial services.
“SACCOs aren’t just banks. They are sisterhood circles,” she said.
She explained that for many Muslim women, the cooperative model provides an opportunity to achieve financial independence in a manner that aligns with Islamic principles.
“For Muslim ladies, a SACCO is more than savings. It is halal financial freedom. By pooling money together, women can fund businesses, support their families, and uplift each other, all without interest. Small monthly contributions lead to big life changes, the halal way,” Hajjat Safina said.
According to her, the first phase of the SACCO initiative was launched in September and October 2025. Since then, more than 350 SACCOs have been established across the country, with registration and expansion continuing to reach every region.
She noted that the initiative shares similarities with the Parish Development Model by focusing on expanding affordable financial services at the grassroots level.
“Much like the Parish Development Model, these SACCOs aim to uplift communities by offering affordable, interest-free financial services right at the local level,” she said.
Since its rollout, the programme has prioritised grassroots economic empowerment by enabling members to save collectively, access affordable financing, and grow businesses without the burden of conventional interest charges.
Supporters of the initiative say its impact extends beyond individual entrepreneurs. By enabling members to finance productive investments such as equipment and business stock, SACCOs are helping generate employment opportunities, strengthen local economies, and increase the circulation of money within communities.
For women’s groups in particular, the cooperative model is providing not only access to capital but also a strong support network that encourages financial discipline, entrepreneurship, and mutual empowerment.
With plans underway to establish SACCOs across every region of Uganda, officials say the long-term objective is to promote inclusive, faith-friendly financial services that reach individuals and communities often excluded from mainstream banking.
As registration continues nationwide, SACCO leaders maintain that sustainable community development begins with a culture of saving, arguing that collective savings remain a foundation for entrepreneurship, household stability, and long-term economic transformation.
