Effects of Wholesale Lending to SACCOs in Uganda - Rural Finance ...

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help participants express their views of wholesale borrowing and its effect on the performance of SACCOs. In total, the consultant met with 78 SACCO members in 12 FGDs. Table 2: Focus Group Discussion Schedule SACCO Date Respondents Groups Kijura SACCO 5 th July 2006 8 1 Ikongo SACCO 6 th July 2006 9 2 Buzaaya SACCO 11 th July 2006 9 2 Zeu SACCO 26 th July 2006 17 2 Panyimur SACCO 27 th July 2006 14 2 Bunyaruguru SACCO 2 nd August 16 2 Bushenyi Peoples SACCO 3 rd August 5 1 Total 78 12 The Effects of Wholesale Lending to SACCOs in Uganda 15
FINDINGS The findings presented in this section result from our experience in the field and from interviews conducted with various SACCO experts, wholesale lenders, apex institutions and donor agencies in Uganda. In many instances, the data collected in the field were inconsistent and inadequate. Generally, the financial data kept by SACCOs proved to be the most unsatisfactory. While the financial records kept by many individual SACCOs are inaccurate and incomplete, we were able to fill gaps and test conclusions by conducting multiple interviews within SACCOs, and compare records kept by the SACCOs with those of the wholesale lenders. Also, some SACCOs have consistently kept good records over several years. For this reason, the research team is confident that the findings presented in this section are reasonably reliable and apply broadly to most institutions. The findings show that wholesale credit affects SACCOs in a variety of ways. This section will present the range of experiences observed in the field in order to provide a detailed understanding of the effects of wholesale lending to SACCOs. The section also details illustrative experiences of individual SACCOs. The findings refer to the seven in-depth field visits conducted with Bunyaruguru SACCO, Bushenyi People’s SACCO, Buzaaya SACCO, Ikongo SACCO, Kijura SACCO, Panyimur SACCO, and ZEU SACCO. Where relevant, we include findings from the control group visits to Bugongi SACCO, Focused Community and Kajara People’s. Further information gathered in the five additional field visits to Kyamahunga SACCO, Muhame SACCO, Nyaravur SACCO, Pakwach Nam SACCO and Shuuku SACCO is presented in text boxes where relevant. GENERAL FINDINGS Introducing the SACCO to Wholesale Lending In four of the seven SACCOs visited, the regional staff of the wholesale lender visited the SACCO to introduce the concept of wholesale borrowing to either the SACCO manager or Board of Directors. The representative explained the wholesale lender’s operations and invited the SACCO to apply for a loan. Bunyaruguru SACCO’s BOD told us that if the wholesale lender had not visited the SACCO, they would not have considered borrowing external funds. In the remaining three instances, the regional Private Sector Promotion Centre (PSPC) introduced the idea of wholesale borrowing to the SACCO management or Board of Directors. Each of the SACCOs we visited maintains a partnership with the PSPC and the PSPC is often acknowledged for helping the SACCO form years earlier. The regional PSPCs have formed relationships with MSC to help the latter promote wholesale borrowing among the SACCOs. The Effects of Wholesale Lending to SACCOs in Uganda 16
Page 1 and 2: The Effects of Wholesale Lending to
Page 3 and 4: © Financial Sector Deepening Proje
Page 5 and 6: LIST OF ABBREVIATIONS ADF African D
Page 7 and 8: SUMMARY This report presents the re
Page 9 and 10: MSC receives funding for its projec
Page 11 and 12: Uganda. In early 2006, FSDU circula
Page 13 and 14: epresent four rural regions of Ugan
Page 15: The data collection instruments are
Page 19 and 20: At the time of SACCO selection, Buz
Page 21 and 22: more shares every time they apply f
Page 23 and 24: Panyimur SACCO has offered, and con
Page 25 and 26: in 2006. ZEU SACCO is focusing on r
Page 27 and 28: MEMBER PERCEPTIONS These findings r
Page 29 and 30: some members improved their repayme
Page 31 and 32: Total Outstanding Loan Balance Only
Page 33 and 34: Bugongi SACCO, on the other hand, s
Page 35 and 36: purchase additional shares for ever
Page 37 and 38: Focused Community SACCO attributes
Page 39 and 40: produce regular performance reports
Page 41 and 42: committees now successfully coordin
Page 43 and 44: 7) Effective Expense Control. A SAC
Page 45 and 46: APPENDIX II: STEERING COMMITTEE MEM
Page 47 and 48: Fred E.G. Mwesigye Commissioner for
Page 49 and 50: APPENDIX IV: INTERVIEW GUIDE - SACC
Page 51 and 52: APPENDIX V: INTERVIEW GUIDE - SACCO
Page 53 and 54: APPENDIX VI: INTERVIEW GUIDE - SACC
Page 55 and 56: APPENDIX VII: INTERVIEW GUIDE - SAC
Page 57 and 58: Balance Sheet: Assets Loans to memb
Page 59 and 60: APPENDIX VIII: BUNYARUGURU SACCO GR
Page 61 and 62: APPENDIX X: KAJARA PEOPLE’S SACCO
Page 63: AMFIU Association of Micro Finance

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