The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Savings and Credit Cooperatives (SACCOs) have been urged to adopt digitalization to improve operational efficiency and attract financial support. This call was made during the launch of a training program for SACCO leaders from the Kampala Metropolitan districts at the Stanbic Incubator offices in Kololo.
Funded by Opportunity International (OI), Stanbic Bank is implementing a broader capacity-building initiative for SACCOs through its subsidiary, Stanbic Bank Investment Ltd (SBIL).
Stephen Segujja, Head of the Economic Enterprise Restart Fund (EERF) at Stanbic Bank, emphasized the importance of digitalization for safeguarding records and ensuring financial credibility. He noted that 174 SACCOs have already been digitalized at no cost.
Segujja revealed that the cost of digitalizing a single SACCO can reach nearly Shs 50 million. However, he stressed that digital systems help SACCOs maintain efficiency and protect critical data from loss or hacking.
“Even if someone hacked the system, your records would remain intact. These are the standards we expect when you seek loans from us. We encourage you to digitalize your systems; we are here to support you,” he said.
Abdul Sserwadda, Chairperson of Kina-kwekulakulanya SACCO, highlighted the challenges posed by emerging moneylenders.
“They require only a National ID and offer money at high-interest rates. We need financial institutions that can provide funding at lower rates, ideally below 10%,” he said.
Segujja reaffirmed Stanbic’s commitment through EERF, offering liquidity at as low as 0.8% interest per month. “Why would you borrow elsewhere at 30% when you can access funds at 0.8%? Pass on these benefits to your members,” he urged.
Catherine Poran, SBIL’s Chief Executive, stressed the critical role of SACCOs in promoting savings and credit access for lower-income communities. She highlighted the training’s objective of empowering SACCO leaders to drive sustainable growth.
Emmanuel Lubwama, OI’s Agriculture Finance Regional Technical Advisor, noted that OI supports various programs aimed at enhancing resilience among smallholder farmers through financial solutions and training.
