Confidential
SACCOs FORMATION IN UGANDA
PREPARED BY: Namubiru Ritah
Business Development Manager SACCOs/MFIs
Email: rnamubiru@uap-group.com
Tel:+256 772630365
Confidential
About SACCOs:-
What is a SACCOs?
2
FINANCIALS Confidential
SAVING
How do SACCOs work
3
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DFN- SACCOs BUSINESS
1. Meaning of a savings and Credit cooperative society (SACCOs)
A Savings and Credit Co-operative Society(SACCOs) is a type of
co-operative whose objective is to pool savings for the members
and in turn provide them with credit facilities. Other objectives of
SACCOs are to encourage thrift amongst the members and also
to encourage them on the proper management of money and
proper investments practices.
• SACCOs are legal bodies registered under the Cooperative
Statute of 1991 & Coop Regulations of 1992.
• SACCOs are owned by their members through paid up share
capital, entrance fees and opening of a savings account.
• Basically, they are economic institutions and must succeed in
doing business in order to grow, survive and become
sustainable.
4 Be 6x more
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Why form a SACCO?
Sound
Financial
Access safe services
Convenient
and
sustainable
Manner
Checklist for members
Do I own it
Do I use it
Do I control It
Do I benefit from it
5 Be 6x more profitable – Truly commited to achieving R3bn RFO by 2030
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Steps of Forming a SACCO
•People with a common bond come together.
•They identify their needs and problems and discuss how to address and solve them.
•Some of their needs can be solved by accessing financial services by establishing their own financial institution
Step 1&2 •Formation of a task force committee to steer, propagate and sell the idea to other potential members of the
community.
• Task force mobilizes other potential members and enlists their support to participate in formation of a
SACCO
Step 3&4 • A general meeting should be convened to deliberate on the idea. Several stakeholders can attend
• At the meeting, sensitization on the need for starting a SACCO is done.
Step 5
6 Be 6x more profitable – Truly commited to achieving R3bn RFO by 2030
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Steps of Forming a SACCO
• An interim committee is elected from the people in attendance. Interim committee holds office until the first AGM is held.This
meeting also deliberates upon the following.
• Area to be covered by the SACCO
Step 6 &7 Name of the SACCO, Qualifications for membership ,Share capital and membership fees and Location of the cooperative society
offices etc.
• Interim committee obtains the required stationery and start collecting money from people interested in becoming members of a
SACCO.
• Interim committee arranges for more training and public awareness generation and sensitization of potential members in order
Step 8 &9 to recruit more members
• Interim committee in collaboration with technical support provider’s e.g UCSCU and District Commercial Officers (DCOs)
draft by laws for the SACCO.
Step 10
7 Be 6x more profitable – Truly commited to achieving R3bn RFO by 2030
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Steps of Forming a SACCO
• With at least 300 fully paid-up members the SACCO can commence formal operations ie recruit staff and acquire office
premises. Saving account becomes operational.
Step 11
• Interim committee should be processing registration papers with The Registrar of Cooperatives
Step 12
• When registration has been done, call first general meeting to elect committee members
Step 13
8 Be 6x more profitable – Truly commited to achieving R3bn RFO by 2030
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Important points to note during the formation of a SACCO.
• Not to force anybody to join, only sell ideas and convince
• Keep minutes of the discussion and meetings held.
• Formulate a simple plan
• Document all processes taken, decision agreed upon and strategies laid out
• Keep a full list of the people (names and addresses) that have enlisted as members.
• Keep an up-to date and correct record of money received from any interested person.
• Minimize expenditure and operate with transparency.
• Study and understand all relevant laws and regulations that govern the cooperative
business namely. FOR UGANDA CASE
➢ The 1991 cooperative statute.
➢ The 1992 cooperative regulations
➢ The draft by laws of the SACCO
• Target numbers to be raised before a SACCO opens for formal operations.
9 Be 6x more profitable – Truly commited to achieving R3bn RFO by 2030
Confidential
THANK YOU
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