A federation for community credit co-operatives has been launched in Uganda to represent the sector and help it meet members’ needs
Formed under the supervision of the Ministry of Trade Industry and Cooperatives (MTIC), the initiative is part of the Uganda Saemaul Geumgo Project, launched in 2018 by the ministry in collaboration with the Korean Federation of Community Credit Cooperatives (KFCC). KFCC started promoting its community credit co-operative model, known as Saemaul Geumgo (MGs) in Korea, to Uganda in 2017 through a bilateral agreement between the two national governments.
Launched on 7 September, the Uganda Federation of Community Credit Cooperatives Ltd (UFCC) will represent the 18 co-ops, help them develop products and the services that correspond to their members’ needs, lobby the government, and provide access to technical assistance, training and financial resources.
The launch featured the chair of Uganda’s Mpigi District, Martin Ssejjemba, who said community credit co-ops foster the economic empowerment and development of communities by providing affordable financial services.
UFCC will be governed by a board of five members elected by the co-ops. Interim chair Samuel Mavumirizi told local TV channel UBC News the federation would help to unite the co-ops and provide financial services to rural communities.
The Uganda Saemaul Geumgo Project has so far supported the formation and operationalisation of 18 finance co-ops, serving 10,000 members, with technical and financial support from the KFCC.
The project also feeds into the Establishment of Sustainable Model Village in Uganda project, which aims to promote community-based, integrated rural development in the districts of Mpigi and Mityana, with an emphasis on self-help, diligence and co-operation.
Hae Sung Park, coordinator of the project for the Establishment of Sustainable Model Village in Uganda, said community credit co-ops have made an important contribution to economic development in Korea and urged the leaders of the new federation to be committed in delivering their mandate to foster economic transformation.
