The cooperative approach to business management has deep historical roots and has transcended tribal, racial, and national boundaries. Throughout the course of economic and social evolution, cooperatives have emerged in response to the needs and aspirations of various communities.
Uganda, like many other regions around the world, has witnessed the formation and growth of cooperatives as a means of fostering economic development and empowering communities. Despite their widespread adoption, a critical inquiry remains unresolved: how effectively is the cooperative movement in Uganda functioning?
This article is the first of the intended series of articles to delve into the history and present state of the cooperative movement in Uganda, shedding light on its evolution over time and exploring its current performance. Through a comprehensive evaluation, we shall aim to understand the extent of the cooperative movement’s success in fulfilling its intended goals and objectives.
Historical Roots of the Cooperative Movement in Uganda
The roots of cooperatives in Uganda can be traced back to as early as 1900 when it was among the British Colonies advocating for their establishment. Inspired by the principles set forth by the Rochdale cooperative pioneers in 1844, pseudo cooperatives emerged in the following years. The formalization of cooperatives came with the Cooperative Ordinance of 1946 and the Cooperative Societies Act of 1962, which recognized and regulated these organizations. During the immediate post-colonial period, cooperatives thrived, especially in the agricultural sector, as the government granted them a monopoly in marketing. Their performance was commendable, but their golden era was cut short in the 1970s due to political interference and insecurity.
Challenges and Resilience of the Cooperative Movement
The interference from external political forces led to a decline in members’ involvement in cooperative management. Consequently, primary cooperatives and unions began to accumulate debts, hindering their ability to provide effective services to their members. Despite these challenges, the cooperative movement persevered, resulting in a complex network of cooperatives comprising active, semi-active, dormant, and extinct entities. In total, there are over 10,000 primary cooperatives and 40 cooperative unions operating under the umbrella of the Uganda Cooperative Alliance, the apex cooperative organization in the country.
The Role of Government and Supporting Agencies
The Government of Uganda plays a vital role in the cooperative sector by overseeing registrations. However, to enhance efficiency and accountability, it has decentralized its supervisory, monitoring, and control functions to local governments. Additionally, several agencies, such as the Uganda Cooperative Alliance (UCA), Uganda Cooperative Savings and Credit Union Limited (UCSCU), and Non-Governmental Organizations (NGOs), have also taken up responsibilities in supporting and promoting cooperatives.
UCA stands out as a crucial advocate for the cooperative movement, actively representing its interests in various forums. Thanks to substantial funding from different donors, UCA has become a pillar in enhancing the productivity, marketing, training, and innovativeness of cooperatives. One noteworthy initiative is the introduction of ‘Area Cooperative Enterprises,’ which demonstrates the impact of UCA’s efforts in driving cooperative progress. Moreover, UCA’s dedication to social protection and poverty alleviation programs has earned it recognition as the incubator of cooperation in Uganda.
Similarly, UCSCU has played a commendable role in strengthening SACCOs, which have become vital channels for government funds to reach grassroots communities through initiatives like the “Prosperity for All” program. With these collaborative efforts, there should be a renewed sense of optimism for the future of cooperatives in Uganda, as they strive to regain their position as essential contributors to the country’s economic and social development.
Revitalizing Cooperative Education and Training
Uganda Cooperative Alliance (UCA) and Uganda Cooperative Savings and Credit Union (UCSCU) have played crucial roles in providing cooperative education through seminars and workshops for cooperators and staff. However, since the transfer of Uganda Cooperative College – Kigumba to the Ministry of Education, there has been a noticeable decline in cooperators’ training. The 14 cooperative wings of the college, located across the country, have largely become non-functional. To address this issue, reclaiming the cooperative college and reactivating its wings could breathe new life into cooperative education and training, bolstering the cooperative movement in Uganda.
Cooperatives for Development and Empowerment
The significance of cooperatives for development in Uganda cannot be overstated. Historically, they have been instrumental in uplifting the living standards of the less privileged. Despite their current lukewarm performance, cooperatives still offer valuable employment opportunities, especially to women and the youth. By establishing income-generating activities and providing jobs, cooperatives have actively contributed to poverty reduction in the country. Additionally, they have played a vital role in social protection by educating their members about HIV/AIDS, further enhancing their positive impact on communities.
Future Prospects and Initiatives for Rural Development
Looking towards the future, the establishment of specialized innovative cooperative enterprises, such as rural electrification, rural water, and indigenous community service farms, holds great potential for rural development. These initiatives can significantly improve living conditions and infrastructure in remote areas, fostering economic growth and sustainability. By revitalizing cooperative education and expanding cooperative enterprises, Uganda can leverage the power of collective efforts to drive inclusive development and progress throughout the nation.
Conclusion
The cooperative movement in Uganda has a rich history and has played a significant role in the economic and social development of the country. Despite facing challenges and setbacks, cooperatives have persevered, and various supporting agencies have stepped in to foster their growth and development. Through a comprehensive evaluation of the cooperative movement’s performance, we shall be able to gain insights into its successes and failures. To ensure the cooperative spirit endures in Uganda, there is a need for continued support from the government, supporting agencies, and stakeholders. By revitalizing cooperative education, addressing challenges, and exploring new avenues for development, Uganda can harness the potential of cooperatives to drive sustainable and equitable growth for all its citizens.
Great insights reflected!