NEBBI. The Minister of State for Micro Finance Mr Haruna Kyeyune Kasolo has advised residents of Nebbi district to embrace the culture of saving.
Speaking during the annual general meeting of Nyaravur Village Savings and Credit Cooperative Organization (SACCO) in Nyaravur Sub County on Thursday, Kyeyune noted that poor saving culture had greatly affected the performance of different SACCOs across the Country.
He urged members of Nyaravur Village SACCO to always follow the principal of SACCO which states that ‘save before borrowing.’
“Of course, you can’t borrow before saving. It is always important to save in all aspects of life. Even at home, you can’t have food to eat when you have not saved for it,” Kyeyune emphasized.
He said in most cases, people don’t mind of income generating activities, a reason they fail to save. Kyeyune advised that to have a good saving culture, people should plan and have a budget for income generating activities in their day to day life.
The Minister said for people to progress, they need to save at all cost.
“People are not poor but they instead have a poor saving culture” Kyeyune added.
Mr Dison Ulama Ukerson, the Nyaravur Village SACCO Board Chairman said loan recovery had been the greatest challenge to their SACCO.
He, however, warned that they will not hesitate to arrest and bring to book members, who have failed to pay back their loans.
“Alternatively, we shall also contact employers of the various loan defaulters whether being in Public Service or Private Sector,” he asserted.
Ulama observed that saving, borrowing and shares of the SACCO are still low yet it has the lowest interest rate of about 2%.
Mr. Geoffrey Gingeira, the Assistant Manager of Uganda Cooperative Alliance in Nebbi said many SACCOs have collapsed due to the mentality of borrowing without paying back.
He said most people love borrowing money from SACCOs yet they don’t want to save.
“Without saving there is no investment, increase on your savings so as to borrow more,” Gingeira recommended.
But Ms Jacqueline Aol, the Nebbi district Woman Member of Parliament called upon government to consider supporting SACCOs since their saving rates are lower compared to commercial banks.