Moyo Cooperative Savings and Credit boosts household incomes

 

COOPERATIVES came and went. But in most parts of the country they are returning slowly and changing peoples' lives. "I call it my mother, father, and my husband because I am a widow, it has provided for schools fees for my 2 children and seven orphans plus two dependants."

 

That is what Natalina Bundru, a resident of Moyo had to say about Moyo Cooperative Savings and Credit Society. Natalina is among the many people who have been able to access affordable loans from the society inorder to improve on their livelihoods in many ways.

 

Moyo Cooperative Savings and Credit Society has since 2003 provided credit services within the district. "Before it was established, people were going to Adjumani and Arua to get credit facilities, we saw the need for one of our own," says Fred Lirri Imbadi, the society's manager.

 

With a low interest rate of 3% and a one off ledger fee of 2000 per year, the society provides loans to businessmen, women groups, farmers, civil servants and institutions in

Moyo.

 

Founded by Fred Lirri and the current LCV chairman Peter Ikudolo, the society is operated and managed by members.

 

"Today, we have a total of 1781 members," Lirri who is also one of the founders of the society says. "Members are owners, because they have shares in the society, they are also managers and beneficiaries," says Lirri.

 

He adds, "it is because of this that staff commitment is high and the members themselves want it to grow,"

 

The loan portfolio growth of the society has over the years grown from 12million in 2003 to over Shs 400 million currently. Lirri attributes this to the high membership mobilization and the good service delivery.

 

SEE: A woman shows her achievements through MCSAC.

 

"The loan process is very short, and it takes 2-3 days to process them," Lirri says. Though it is only three years old, the society managed to pay out dividends to their members this year after they had sacrificed the first two years to enable its growth.

 

"We gave out Shs 42 million to all members with shares. Members had agreed to forego dividends for two years to foster growth of the cooperative," Lirri says. After the dividends were paid out, other community members who were not part of the society were encouraged to join.

 

"This increased the number of new members to 60 per month since September 2006," Lirri says.

 

Another advantage of the society is that loans are repaid back in a period of six months which most members that Daily Monitor talked to said that they were comfortable with it.

 

"The repayment period is good for me. I first got a loan of Shs 125,000 which I paid comfortably in six months and then the fourth time I got 4 million with an extended repayment period which I am also comfortable with," says Elias Amadri, a business man who has expanded his business from Shs 5 million to worth more than Shs 12 million because of the affordable credit facilities. Also, because of the availability of the credit services, Elias has started construction of a residential house in his village.

 

Due to its strict compliancy to tax payment, the society won the Uganda Revenue Authority Vantage Award for the most compliant tax payer 2005/6 during the appreciation month of August, 2006.

 

Members find benefits in the loans they take otherwise they wouldn't come back for more and then repaying promptly means that they have accumulated surplus. Members can now provide education for their children and also expanded what where temporary operations into permanent business operations, most traders used to trade only in the dry season and then go back to their villages in the wet season but now they trade everyday."

 

"We also provide loans to organized women groups with a shared development vision and also have helped people improve from the temporary and semi permanent houses to permanent structures," Lirri adds.

 

Sabinah Tiza, the Magistrate Grade II of Moyo also says that through the loans from the society from which she has borrowed four times, she has managed to secure 60 acres of land on which she has already cultivated groundnuts and SimSim.

 

"I harvested 10 sacks of groundnuts from that land and I also bought one motorcycle which is bringing in Shs 200,000 per month and also part of the money is being used for building my house," says a happy Tiza.

 

He also says that farmers who have got loans from the society have realized many benefits. "They have realized increase in their output because they can now buy more land and better seeds from which they get better yields," Lirri says.

 

In addition, the members are advised and trained in credit management and control. Clearly, the coming of the society into the picture has improved many lives of people living in Moyo. The society in future hopes to become a Micro Finance Deposit-taking institution by 2010.