Savings and Credit Co-operatives (SACCOs) have been urged to adopt digitalisation to enhance operational efficiency and attract financial support.
The call was made at a recent launch of training for SACCO leaders from Kampala Metropolitan area at the Stanbic Incubator offices in Kololo.
With funding from Opportunity International (OI), Stanbic Bank is currently carrying out a broader capacity-building initiative for SACCOs. The project is being implemented by SBIL, which, along with the bank, are subsidiaries of Stanbic Uganda Holdings Limited (SUHL).
Stephen Segujja, the Head of Economic Enterprise Restart Fund (EERF) at Stanbic Bank, said digitalisation is crucial for record safety and financial credibility.
Speaking on behalf of SUHL’s Chief Executive Francis Karuhanga, Segujja said 174 SACCOs have already been digitalised free of charge.
Through a survey conducted recently, Segujja said it was found that digitalising just one SACCO costs almost Shs50 million. He however, said digital systems ensure SACCOs remain efficient, safeguarding vital data from loss or hacking.
“Even if someone came and hacked into the system, your records would be kept intact. These are the things we want to see when you come to borrow money from us. Please, we ask of you, kindly digitalise your systems. We are here to support you,” Segujja said.
Abdul Sserwadda, the Chairperson of Kina-kwekulakulanya SACCO, highlighted some challenges faced and said, “There are many moneylenders who are cropping up. All they ask for is a national ID, and they give out money. We need financial institutions that can fund us at very low interest rates, at least not beyond 10%, to boost our development.”
Segujja, however, reiterated Stanbic’s commitment through EERF, offering liquidity at as low as 0.8% interest per month and encouraging SACCOs to lend to their members at reasonable rates.
“Why would you get money elsewhere at about 30% when there is an opportunity for you to get money at 0.8%? And when you get this money, do not go and lend to your members at 30% per month. You have already benefitted, and you should pass on the same benefit to them as well,Segujja said.
Catherine Poran, SBIL’s Chief Executive, emphasised the critical role SACCOs play in promoting savings and credit access for Uganda’s lower-income communities, particularly for poverty alleviation. She said the training equips SACCO leaders with the necessary skills to drive sustainable growth within their cooperatives.
“These trainings will empower you to lead your SACCOs more effectively and drive sustainable growth in your communities,” Poran said.
Emmanuel Lubwama, the OI Agriculture Finance Regional Technical Advisor for Uganda and Ghana, said their organisation funds several programs. These include agriculture finance, education finance, a micro banking program, digital innovations, digital financial services, and the health finance program.
“All these programs are geared towards supporting the last mile, especially the smallholder farmer. We as Opportunity International feel that partnering with financial institutions like Stanbic Bank gives us an opportunity to support our farmers by providing financial solutions and trainings, as well as ensuring that they increase production, incomes, and create jobs, which will, at the end of the day, make them more resilient,” Lubwama said.
