By Aggrey Baba
After 25 years of absence, the return of the Cooperative Bank has emerged as a significant milestone in Uganda’s push for inclusive development, with stakeholders in the cooperative movement describing it as a game-changer in improving financial access for Ugandans.
Speaking at a press conference on Wednesday, ahead of this year’s International Day of Cooperatives, Uganda Cooperative Alliance (UCA) Board Chair, Mr. Johnas Tweyambe, said the bank’s revival represents a turning point in restoring financial dignity and economic empowerment for rural communities and small-scale enterprises that had been long neglected by mainstream commercial banks.
The Cooperative Bank, which is now in the early stages of operationalization, is expected to extend affordable credit and other financial services tailored specifically for cooperatives, savings groups, and underserved people across the country.
Mr. Tweyambe called for immediate capitalization of the bank to ensure its stability, competitiveness, and ability to fulfil its mandate.
“Cooperatives are not just a legacy of the past, they are the future of Uganda’s development,” Tweyambe said, detailing that the Cooperative Bank must be adequately funded and positioned to support inclusive financing, especially in rural areas.”
His remarks come at a time when government is championing several community-based development programmes such as the PDM, Emyooga, and the Women Entrepreneurship Fund, all of which rely heavily on savings and cooperative structures.
Tweyambe proposed that these divided government funding initiatives should be consolidated into a single fund and channelled through the Cooperative Bank to eliminate duplication and enhance efficiency.
The announcement comes ahead of the 103rd International Day of Cooperatives, to be marked on Saturday July 5, 2025, in Fort Portal City under the global theme “Cooperatives: Driving Inclusive and Sustainable Solutions for a Better World.”
Tweyambe praised the president of Uganda, Yoweri Museveni and the the government for their unwavering support of the cooperative agenda, saying their endorsement had led to renewed growth of cooperatives in both numbers and economic impact.
He singled out government’s decision to caveat and protect UCA’s assets from illegal sale as a strong sign of commitment to safeguarding the movement’s legacy.
However, the UCA Chairperson also painted a sobering picture of the challenges still facing cooperatives in Uganda. Top among them is chronic underfunding of the sector and weak implementation structures at local government level.
District commercial officers, who are supposed to support and monitor cooperatives on the ground, are said to be under-facilitated, poorly trained, and overwhelmed by other responsibilities.
Tweyambe appealed to government to streamline their roles and provide capacity building, including transforming Kigumba and Tororo cooperative colleges into degree-awarding institutions. He also pushed for the creation of a policy that mandates cooperative education and training among all cooperative leaders and development officers.
Further, Tweyambe criticized fraud and asset theft by some cooperative leaders and managers, describing it as a cancer within the movement, and urged government to take serious action to prosecute such cases and protect members’ wealth from internal exploitation.
UCA also renewed its call for a review and harmonization of laws governing cooperatives, especially Savings and Credit Cooperative Organizations (SACCOs), to remove overlaps and plug legal gaps that have enabled fraud and regulatory confusion.
Despite the hurdles, Mr. Tweyambe expressed optimism about the direction the cooperative movement is taking. He cited the growing participation of youth and professionals, especially through Emyooga and other government programmes, as proof that cooperatives are shedding the old stereotype of being only for peasants and the poor.
The Cooperative Day celebrations in Fort Portal are expected to attract stakeholders from across the country, and serve as a rallying point for renewed momentum in cooperative development. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
