Bugadde Savings Sacco in Mayuge Town Grows from Shs6 Million to Shs28 Billion.

Bugadde Savings Sacco in Mayuge Town Grows from Shs6 Million to Shs28 Billion.

Bugadde Cooperative Savings and Credit Society Limited (Sacco) has experienced significant growth in its savings, increasing from Shs6 million since its inception in 2005 to an impressive Shs28 billion. The Chairperson of the Board of Directors, Mr. Robert Mugabi, attributed this success to a combination of member contributions and government support.

At its inception, the Sacco recorded Shs900,000 in member savings and received Shs5 million as seed money from the government, presented by the former vice president, Ms. Specioza Naigaga Wandera Kazibwe. “It has been 19 years since the Sacco’s inception, and our savings have now accumulated to Shs28 billion. The government’s initial seed money helped us significantly, and we have managed to grow it to billions,” Mr. Mugabi stated.

The Sacco’s growth can be credited to its expanding membership, which has increased from 32 members at the start to 56,000 currently. The membership fee is Shs35,000, with a minimum savings balance of Shs20,000, while loans attract a monthly interest rate of 2.5 percent. However, Mr. Mugabi noted that some members, particularly from the fishing community, have become inactive due to the cessation of fishing activities by the government.

The Sacco has also played a crucial role in addressing unemployment. “So far, 144 workers are employed by the Sacco, and thousands have benefited indirectly,” Mr. Mugabi said. Members have shared success stories, such as Mr. Richard Moses Sala, who used a loan to acquire a motorcycle and stock his drug shop, and Mr. Rashid Kwagala, who constructed a house, bought a pickup truck, and paid school fees for his children through Sacco loans.

Mr. Mugabi emphasized the importance of government support, particularly the tax holidays that have allowed the Sacco to grow its savings. “The government has exempted us from taxes for 10 years. Since January, we have not been paying withholding tax, and we request the government to continue these exemptions to help us expand our savings further,” he explained.

Transparency and accountability have also been pivotal to the Sacco’s success. “All the Sacco leaders are exemplary and transparent, ensuring the safety of members’ savings,” Mr. Mugabi added. He expressed his ambition for Bugadde Sacco to become a financial institution owned by Ugandans.

Mr. Patrick Lwokyaza echoed this sentiment, advocating for the Sacco to be upgraded to a commercial bank to enhance its financial services to the community. “The Sacco has supported vulnerable women with loans for school fees, enabled fishermen to purchase standard fishing nets, and helped youth acquire motorcycles,” he said.

In addition to financial services, Bugadde Sacco has undertaken social corporate responsibility initiatives, such as garbage collection in Mayuge. The Chairperson of Mpongwe Sub-county, Mr. Hamisi Magumba, praised the Sacco’s sustainability, noting its effective loan monitoring system. Similarly, Busakira Sub-county Chairperson, Mr. Silver Wabula, highlighted the Sacco’s positive impact on local livelihoods, including providing loans to sugarcane farmers and youth.

Bugadde Sacco was formed in 2004 by 32 grassroots members in Kityerera Sub-county, Mayuge District, and was officially registered on January 11, 2005. It currently operates nine branches in eastern Uganda, with its headquarters in Mayuge Town.

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