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

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TABLE OF CONTENTS LIST OF ABBREVIATIONS.............................................................................................4 ACKNOWLEDGEMENTS...............................................................................................5 SUMMARY......................................................................................................................6 INTRODUCTION............................................................................................................7 Background.......................................................................................................................................7 Arguments for Wholesale Lending to SACCOs .........................................................................9 Arguments against Wholesale Lending to SACCOs...................................................................9 Objectives of the Study...................................................................................................................9 METHODOLOGY ........................................................................................................11 Preparations....................................................................................................................................11 Sacco Selection...............................................................................................................................11 Data Collection Instruments........................................................................................................13 Field Research ................................................................................................................................14 Focus Group Discussion ..............................................................................................................14 FINDINGS....................................................................................................................16 General Findings............................................................................................................................16 Changes in Policies ........................................................................................................................20 Changes in Practices......................................................................................................................23 Member Perceptions .....................................................................................................................26 Financial Performance...................................................................................................................28 Additional Findings .......................................................................................................................32 CONCLUSIONS ............................................................................................................37 RECOMMENDATIONS.................................................................................................39 Guidelines for Lending to SACCOs...........................................................................................40 APPENDICES ...............................................................................................................43 Appendix I: Matrix of SACCOs Visited.....................................................................................43 Appendix II: Steering Committee Members and Field Research Team................................44 Appendix III: Sources Consulted on Wholesale Lending to SACCOs .................................45 Appendix IV: Interview Guide – SACCO Members ...............................................................48 Appendix V: Interview Guide – SACCO Board of Directors................................................50 Appendix VI: Interview Guide – SACCO Management.........................................................52 Appendix VII: Interview Guide – SACCO Financial Data.....................................................54 Appendix VIII: Bunyaruguru SACCO Growth Graph ...........................................................58 Appendix IX: Bushenyi People’s SACCO Growth Graph .....................................................59 Appendix X: Kajara People’s SACCO Growth Graph............................................................60 Appendix XI: Bugongi SACCO Growth Graph.......................................................................61 The Effects of Wholesale Lending to SACCOs in Uganda 3
LIST OF ABBREVIATIONS ADF African Development Fund AfDB African Development Bank AGM Annual General Meeting AMFIU Association of Microfinance Institutions of Uganda BOD Board of Directors BoU Bank of Uganda CCA Canadian Co-operative Association DFID UK Department for International Development FGD Focus Group Discussion FSDU Financial Sector Deepening Project Uganda GoU Government of Uganda GTZ Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH (German Technical Cooperation) LC Local Council MFI Microfinance institution MFPED Ministry of Finance, Planning and Economic Development MOP Microfinance Outreach Plan MSC The Microfinance Support Centre Ltd. MTTI Ministry of Tourism, Trade and Industry NGO Non-governmental organization PAP Poverty Alleviation Project PAR Portfolio at risk greater than 30 days PMT Performance Monitoring Tool PSPC Private Sector Promotion Centre SACCO Savings and credit co-operative society Sida Swedish International Development Agency Rural SPEED Rural Savings Promotion and Enhancement of Enterprise Development SUFFICE Support to Feasible Financial Institutions and Capacity-Building Efforts TOR Terms of reference UA Unit of Account UCA Uganda Co-operative Alliance UGX Ugandan Shillings UCSCU Uganda Co-operative Savings and Credit Union USAID United States Agency for International Development WOCCU World Council of Credit Unions National Currency = Ugandan Shillings (UGX) 1 UA = 1880.64 UGX 1 UA = USD 1.36421 The Effects of Wholesale Lending to SACCOs in Uganda 4
Page 1 and 2: The Effects of Wholesale Lending to
Page 3: © Financial Sector Deepening Proje
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 and 16: The data collection instruments are
Page 17 and 18: FINDINGS The findings presented in
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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