Savings and Credit Cooperative Societies (SACCOS) in Uganda have been advised to diversify their investments to ensure financial sustainability.
“Statistics show that all banks in Uganda only serve five million people yet the SACCOS serve close to 20 million people. It’s paramount for us as one of the leading drivers of Uganda’s economic development to provide access to inclusive and affordable financing for all citizens, regardless of their social status,” said Francis Karuhanga, CEO of Stanbic Holdings Uganda Limited.
Karuhanga made the call during a recent SACCOS forum organized by Stanbic Bank. “Traditional investment avenues may not yield desired returns in today’s dynamic economic landscape,” he added.
Stanbic Bank has increased its credit ceiling for unsecured loans to SACCOS from Shs200 million to Shs4 billion at an interest rate of 10%, payable in 36 months.
“Stanbic Bank operates under our purpose: Uganda is our home, we drive her growth. In fulfillment of this, we are excited to be walking this journey together. We believe that by offering reasonably priced and tailored solutions, we are not only creating opportunities for our customers but also transforming the lives of people who we cannot reach as a bank,” Karuhanga said.
Salima Asha Katamba, Investment Manager at SBG Securities, highlighted the benefits of investing in unit trusts. “Unit trusts are not only managed by professionals, but also provide accessibility for smaller organizations that may lack the capital to invest in larger ventures such as buildings. The minimum amount one needs to open up a unit trust account is just Shs 100,000, which is much cheaper compared to the money needed to acquire a fixed asset like land.”
James Junguru, Stanbic Bank’s Head of SACCOS Department, outlined the bank’s support for SACCOS. “For SACCOS to access this financing, they must have been in operation for at least three years, with audited books of accounts and credible leadership.”
Josephine Nakato, FlexiPay Head of Customer Experience, showcased the advantages of mobile money solutions. “With FlexiPay, members of cooperatives are offered better financial management tools with integrated features such as budgeting, transaction history, and account monitoring that help them keep track of their finances more effectively.”
Dogo Singh, Assurance Manager at Stanbic Bank, emphasized the importance of integrating insurance. “Insurance is the golden ring for the economy and a paramount asset for an individual or organization.”
The Pakasa Forum, scheduled for November 23, 2024, will bring together SACCOS and SMEs to explore investment opportunities and funding options.
