Kasaija welcomes revival of Co-operative Bank

Finance Minister Matia Kasaija says he is ready to support the revival of the defunct Co-operative Bank as one of the ways of creating opportunities for Ugandans to access affordable loans.

“I have been waiting for your initiative. Since you are now initiating the idea, I am waiting for you to put in place whatever is necessary to revive the bank,” Mr Kasaija said.

Mr Kasaija was speaking in Jinja during celebrations to mark the International Day of Cooperatives on Saturday.
The Co-operative Bank was started in 1964 but closed in 1999. The closure left many farmers who were cooperating under unions stranded since they had no alternative financial institution that could appreciate their farming business.

The existing commercial banks, according to members of the cooperative movement, give unfavourable conditions to farmers before giving them credit to finance their farming projects.

Mr Kasaija, who represented President Yoweri Museveni, however, warned farmers and other Ugandans who have come together under cooperatives to avoid the past mistakes of relying on civil servants to run their institutions.
“Don’t allow civil servants to run your business because they are selfish and only interested in their salaries and allowances, not in your work, interest and goals,” Mr Kasaija said.

The co-operatives, according to Mr Kasaija, collapsed partly because they mostly relied on civil servants who were not members of the groups, to run all operations.

Mr Kasaija said if cooperatives are well organised, they have the potential of reducing unemployment and brain drain by investing in sectors like housing, road construction, transport, food processing, health care among others.

On behalf of President Museveni, Mr Kasaija said there is need to create awareness about cooperatives to young people who don’t seem to understand the value of cooperatives and how they can turn around people’s fortunes through affordable credit to members.

Trade Minister Amelia Kyambadde said they are consulting stakeholders on the revival of the Co-operative Bank to provide agriculture and commodity financing to the co-operative movement.

The co-operators asked the government to fast-track the compensation process of all co-operative unions that lost assets and stock during the liberation war in the 80’s.

During the cooperatives week, according to the state minister for Co-operatives Mr Gume Ngobi, members of various co-operatives planted trees, donated blood and cleaned markets.

Ms Norah Nakyegera, the head of Community Resilience to Climate Change at Action Aid Uganda, said they are engaging young people mainly in Kotido, Amuru, Gulu, Pader and Oyam create Saccos where they can save money to buy improved seeds and ploughing materials for better yields and improved incomes.