By Tayebwa Bernard
Manager, Agribusiness Unit, UCA
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UCA is an umbrella organization of cooperatives in Uganda
Registered in 1961
Currently UCA is independent member-based
coop. under MTTI
In addition to other development work, UCA
is mandated to do advocacy and lobbying for
the cooperative movement.
THE ONLY WAY TO EMPOWER FARMERS IS
THROUGH FACILITATING THEM TO
STRENGTHENING THEIR ORGANISATIONS SO
THAT THEY TAKE AN UPPER HAND IN
SOLVING THEIR PROBLEMS-(Produce,
process, sell/export..)
COOPS ARE THE BEST WAY TO DO THIS .
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Primary - district Union - Apex(UCA)
Relied on marketing boards for marketing,
crop finance…
Unions far from primaries-farmers had no
control.
Exploited farmers-buy at low prices ,sell at
profit and not pass the profit to the farmerinvested in assets...
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Govt pull out of mkting boards.Passed 1991
law making coops autonomous
District Coop unions could not adjust from
dependence on govt-almost all collapsed.
UCA reforms-Area Coop. enterprise at
sub-county level, ACEs brokers not buyers..
Started SACCOS;diversification; empasised
self-help.
Came up with the integrated model
Shares plus ideas
Members
Financial
Services
Farmers’ Advisory Services,
Marketing Services
Shares
savings +
ideas
Shares plus ideas
Primary Society
(RPO)
Shares
savings +
ideas
Financial
Services
S A C C O
ACE
Marketing Services
Value Addition
Savings facility,
loans + other
financial services
Shares
savings +
ideas
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Our farmers are organised into primary
societies(rural producer organisations)
,Secondary coops(Area coop.enterprises)
and regional/national unions.
At every ACE level there is a SACCO for
providing financial services to members.
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Have been formed (recently)along commodities like
grains, honey, wines and juices, fish, beef ,
livestock, crafts and furniture, herbalists
ACEs are members of national unions
SACCOs have formed Uganda Central Coop
Financial Services(UCCFS) as a SACCO of SACCOs
and other coops for intermediation.
National coops for lobbying, advocacy, link ACEs to
bigger input and commodity markets.
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Mobilise members to pay share capital and
to participate in devel activities
Access and guide on use of inputs(study
Circles)
Selection of enterprises(3) and varieties
Access to extension and other educ
Organise commodities for transporting to
ACEs
Organise to transport commodities to ACEs
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Bulking-as a broker not buying;genuine weighing
Storage-on pallets,fumigation,safety,coolers(for
milk),labbling/branding
Value addition
Look for markets-esp. contracts
Market information to members
Facilitate warehouse Receipt system operations-store until
prices are good but farmers get about 50% from SACCOs or
banks thru UCE) as they wait.
Bulk purchase of inputs –shops, arrangements
Share of indivisible inputs like tractors
Look for partners to complete value chains
Address gender, environm,AIDS/HIV
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ACEs access UCE stores easily-now in
jinja,Tororo,Masindi,Mbarara,Kasese,Gulu
Several banks give loans against UCE receipts
Solution to crop finance problem
Easy to link to external markets thru UCE
So WRS can be at the ACE/SACCO or
bank/UCE levels
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Joint bar codes and certification with NBS
Joint patent rights
bulking. Some cottages have over 10,000
litres of banana/pinneaple wine
Bulk procurement of inputs eg; bottles
Easy training-can even hire trainers jointly
Can share machines like destoners,rice
hullers, maize hullers,g.nut shellers,milk
coolers
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Encourage rural savings which are channeled to
investments -Job and wealth creation
SACCOs employ many people
Training leaders and members esp in profitable
opportunities.
Mobilize resources for investment e.g from lead
banks and MSC
Increase liquidity esp. in rural areas.
Several products eg.Agric loans,
water,insurance,money transfers,solar,salary a/cs
and loans
Table 1: Comparison of UCA Supported SACCOs and all
SACCOs Nationally
ITEMS
Number of SACCOs
National SACCO
Statistics 2008
UCA Current Projects Supported SACCOs
June 2010
1,518
250
644,318
301,679
Share Capital
21,538,238,179
13,460,980,000
Savings mobilized
54,970,794,773
35,861,180,000
Loan Portfolio
65,393,633,314
48,740,000
Membership
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Facilitate Marketing through warehouse
receipt system-accepting receipts from
Marketing cooperatives as security for loans.
Are entry points of different programs
Have special products for education,
insurance(esp.on loans), shelter, agriculture
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Ltd funds to extend the integrated model to
the whole country.
Inadequate storage at RPO and ACE levels.
Inadequate funds for Warehouse receipt
System at SACCO level
Shortage of infrastructure and facilities for
value addition
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Bad history of coop. collapse
No regulatory law/authority for SACCOs
Many players in SACCO business-not all
under UCA
Shortage of leaders-change after second term
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Facilitation to UCA to extend the integrated model to
the whole country (now only 80 ACEs)and to other
countries.
Capacity building of co ops-enable them be at the fore
front
Storage at Primary and secondary level-owned and run
by farmers.
Support SACCOs to facilitate warehouse receipt system
Funding for value addition infrastructure and facilities
Cooperation among coops within countries and across
boarders
Contd support to comm.exchange; Linking commodity
exchange markets in Africa.