Wazalendo wants to start funding govt projects
Mr Joseph Onata (L), the Wazalendo chief executive officer, talks to the UPDF Deputy Commander Land Forces Maj Gen Francis Takirwa (2L) and other officers during the launch of Wazalendo Sacco in Mbarara City. Photo / Rajab Mukombozi
What you need to know:
- Wazalendo says it has built enough capacity to finance big projects including government's big ticket projects
The UPDF Deputy Commander Land Forces, Maj Gen Francis Takirwa, has said Wazalendo Saving and Credit Cooperative now has capacity to fund government projects, which could cushion it from expensive loans.
Speaking at the commissioning of a Wazalendo branch in Mbarara City, Maj Gen Takirwa said having grown in both capital and savings, the Sacco now has capacity to fund any project including government projects.
“Yes, one of our missions is to start funding government projects,” he said, noting that the move will save government from expensive credit as well build internal capacity through which government can borrow to fund its projects.
Col Joseph Fred Onata, the Wazalendo chief executive officer, said the Sacco now has a share capital of Shs223b, while savings have grown to Shs326b.
Total assets, he said, now stand at Shs762b with a loan portfolio of Shs612b.
Wazelendo is part of the 42 Saccos with large investments in Uganda, which Bank of Uganda indicated recently would start to regulate.
Bank of Uganda, under amendments to the Microfinance Deposit-Taking Institutions Bill, 2022, will be mandated with regulating Savings and Credit Cooperative Societies (Saccos), whose savings are above Shs1.5b and institutional capital of above Shs500m.
Col Onata said that since 2007, Wazelendo has injected close to Shs2 trillion in the economy through member loans, noting that the dream to fund government projects was very possible.
He also indicated that by moving its branches outside the barracks, this was part of the larger plan to draft civilians into joining Wazallendo.
