Govt moves to formalise Emyooga Saccos for market competitiveness

Memers of Nother City Division Sacco dispalying their products. Photo | Herbert Kamoga
What you need to know:
- The Sacco, which produces composite flour from cocoyam, soya, and yellow corn, as well as pineapple and hibiscus wine, aimed to provide nutritious, locally made products to children, women, and the elderly
When Northern Division Constituent Emyoga Sacco ventured into agro-business and value addition, the road ahead was fraught with challenges.
The Sacco, which produces composite flour from cocoyam, soya, and yellow corn, as well as pineapple and hibiscus wine, aimed to provide nutritious, locally made products to children, women, and the elderly.
However, without certification, accessing formal markets like supermarkets and shops was nearly impossible.
"Initially, acquiring machinery and ensuring quality assurance were major hurdles. But even with improved processes, the lack of certification restricts us to informal markets, where we cannot compete fairly," said Nafuna Sylvia, the Sacco Secretary.
This story mirrors that of many Emyooga groups across Uganda. While over 30 Saccos in the Bugisu Sub-region are engaged in production and value addition, only six in Mbale City have embraced full value addition. For many, the high cost of certification and technical requirements remain significant barriers.
To bridge this gap, the government, through the Uganda Microfinance Support Centre, has partnered with agencies such as the Uganda National Bureau of Standards (UNBS), the Uganda Registration Services Bureau (URSB), and the Uganda Revenue Authority (URA) to formalize Emyooga Saccos.
According to Woniala Pius from UNBS, product certification ensures consistent quality, enhances branding, and protects businesses from legal disputes. "Certified products are more trusted and recognized. For example, maize milling must be certified to meet mandatory standards," he explained.
URSB's Eunice Angoro Okiror underscored the importance of business registration in formalization. "Registration gives businesses legal recognition and opens doors to financing and bidding opportunities. Without it, businesses risk losing their names to competitors and missing out on contracts that require proof of registration," she said.
URA's Reuben Sendikadiwa emphasised the role of tax compliance in business growth.
"A Tax Identification Number (TIN) is essential for accessing contracts, especially with NGOs and government entities. Registration also ensures businesses pay taxes on profits, employee earnings, and purchases, which helps build trust and credibility," he explained.
Through partnerships with UNBS, URSB, and URA, Saccos like Northern Division are inching closer to certification. Training sessions have improved their prospects, making certification more achievable despite its cost.
Certified Saccos will be able to expand their market reach, supplying formal retailers and competing favourably in the open market. According to Simon Peter Egrait, the Mbale Zonal Manager, the government has so far disbursed Shs11.7 billion to 302 Emyooga Saccos in the region, with Shs3 billion saved collectively.