Growth of Cooperative mov’t triggers calls for revival of Co-operative Bank

Minister Gume Ngobi seated centre, in a group photo with leaders and members of the MG Cooperatives at the launch of their head office in Mpigi district

Minister Ngobi made the revelation while officiating at the launch of a new office block for the Uganda Federation of MG Community Cooperatives (UFCC) at Majja Village in Buwama Town Council, Mpigi district.

Minister Ngobi revealed that arising from the impressive growth in membership of cooperatives, they are now asking government to revive a bank for cooperatives.

“We’re now rooting for our own cooperative bank. There’s no reason why we should not be working towards an institution that supports our interests as cooperators,” said Minister Ngobi.

Minister Ngobi observed that unlike Commercial banks that go only where there is money, cooperative movements help in mobilising savings that later translate into deposits.

The launch of a new building for UFCC was hailed as a landmark achievement for Uganda-Korea development cooperation.

Minister Ngobi cutting the tape to symbolize the launch of the UFCC headquater in Mpigi district

The Korea Federation of Community Credit Cooperatives (KFCC) largely sponsored the construction of the building. KFCC inspired the establishment and development of Maul Geumgo (MG) or Village Banks in Mpigi and Mityana districts.

During the launch of the UFCC building, Minister Ngobi extended his gratitude to the government of Korea and KFCC in particular, for their sacrifices in introducing the Korean model of financial and credit community mobilisation.

UFCC Executive Director Mr. Kyepa Andrew revealed that KFCC donated some US$50,000 towards construction of the office block.

Minister Ngobi also hailed his own NRM government for reaching out to the Koreans when it signed an MOU with KFCC to start MG cooperatives in Uganda.

“The Korean model of financial credit cooperatives is unique. Not only does it strive to improve the welfare of the individual members, it has a component for up-lifting the standard of living of the whole community,” Minister Ngobi added.

“We have heard here that some MGs have supported their own communities to get electricity and water. It works in such a way, that when the users of the service pay the bills, they contribute towards recovering the loan,”

And whereas the Koreans have been and remain instrumental in birthing MG revolution in Uganda, there are signs that the movement has gathered steam and will soon self propell.

Numbers don’t lie

According to UFCC chairman Samuel Mavumirizi, there are currently over 13,000 members united under 18 independent MGs spread across two districts of Mpigi and Mityana.

The organisation’s chief financial officer Pascal Bwambale reported that as at 30, June 2024, the MGs had been able to mobilise up to Ugx 2.1 billion from their members. They have also been able to lend upto Ugx 1.8bn, and have share capital worth Ugx 499m. These achievements realised in just three years of their existence, were hailed by many as milestones in community mobilisation.

Indeed the chairman of Mityana district Mugisha Patrick Nshimye asked the government to borrow a leaf from the MG movement in implementing the Parish Development Model (PDM).

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