Uganda Cooperatives Alliance Pushes for Urgent Revival of Cooperative Bank

The Uganda Cooperatives Alliance (UCA) has intensified its call for the swift re-establishment of the Cooperative Bank, emphasizing its critical role in empowering the nation’s burgeoning cooperative movement. The plea was made during the 103rd International Cooperative Day celebrations held Saturday at Booma Grounds in Fort Portal City.

Johnas Tweyambe, Chairperson of the Uganda Cooperatives Alliance, underscored the urgent need for a dedicated financial institution for cooperatives, which he believes would unlock access to affordable and tailored financing. “Having our own financial institution would enable cooperatives to access affordable and appropriate financing,” Tweyambe stated, highlighting the current challenges faced by cooperatives in securing capital.

The Cooperative Bank, a cornerstone of the cooperative sector for decades, was closed in May 1999 by then-Bank of Uganda Governor, the late Charles Kikonyogo, primarily due to inadequate capitalization and insolvency, with a reported deficit of Shs 4.8 billion by the end of 1998.

Despite the two-decade hiatus, Tweyambe revealed that the UCA is prepared for the bank’s revival. He announced that the Alliance has already formulated “clear and actionable resolutions” to support the re-establishment and has secured an initial Shs 100 million in startup capital, demonstrating a tangible commitment to the project.

Responding to the UCA’s fervent appeal, State Minister for Cooperatives, Fredrick Gume Ngobi, assured cooperators that the government has already initiated steps towards reviving the bank. He confirmed the establishment of a steering committee to oversee the intricate process, signaling a positive response from the government.

Minister Ngobi also lauded the remarkable growth of cooperatives in recent years, particularly attributing this surge to the successful rollout of the Emyooga program, which has significantly fostered a culture of savings across the country.

Representing President Yoweri Kaguta Museveni as the chief guest, State Minister for Trade, Gen. Wilson Mbasu Mbadi, weighed in on the importance of robust internal mechanisms for cooperative success. He urged cooperatives to prioritize strong governance and unwavering transparency, deeming them essential for long-term impact and sustained growth.

According to data from the Ministry of Trade and Cooperatives, Uganda boasts an impressive cooperative landscape, with over 47,000 registered cooperatives serving a membership exceeding 15 million people. This vast network underscores the potential impact of a revived Cooperative Bank.

This year’s national celebration, held under the theme “Driving Inclusive and Sustainable Solutions for a Better World,” showcased the diverse contributions of the cooperative movement. The event featured a wide array of activities, including a national blood donation and health camp, a tree planting campaign, a national cooperative symposium, a vibrant sports gala, the commissioning of the Busaiga SACCO main building, and an engaging exhibition highlighting cooperative achievements. The call for the Cooperative Bank’s revival emerged as a central and poignant message amidst these celebrations.