Baitambogwe SACCO is a Savings and Credits Co-operative Micro Financial Institution (MFI), which means that its members are at the same time clients and shareholders. This structure allows Baitambogwe SACCO to be closed monitored by those who benefits from its products and services, providing the Baitambogwe community the proper assistance in order to fulfil their needs regarding adequate financia
l services. A SACCO (Savings and Credit Cooperative) is a member owned financial institution, which means that every new member is required to buy at least one share. In a SACCO every member is at the same time a client and a shareholder. Therefore, the loans provided by Baitambogwe SACCO are funded by its own member, via shares purchases, savings and interest paid on loans. In order to be able to access Baitambogwe SACCO services and be benefited by all products, every new member is required to buy at least one UGX 20,000/= (US$ 7.50) share, therefore the new member is also a shareholder. Every time a new share purchase requirement emerges, a new share is issued. Except when a member is leaving Baitaimbogwe SACCO and transfer its shares to a new entry member, there are no secondary shares transactions between members, non-members and Baitambogwe SACCO. Every year SACCO hosts the Annual General Meeting (AGM), which all members are called and decisions on major issues and SACCO plans for the future are taken. The AGM takes its decisions regarding all the needed and urging aspects. The decisions taken by the AGM are the ones to be followed, as AGM, composed by all SACCO members, is the highest authority in Baitambogwe SACCO. By the end of the Fiscal Year every member receives a dividend corresponding to its share (in percentage). The dividends are paid after all the investments are done – all investments are first approved by the Board and the members of Baitambogwe SACCO. Baitambogwe SACCO currently (as March 2013) counts 888 fully paid up members, and it operates within Baitambogwe sub-county, which includes 7 parishes (Iguluibi, Wabululngu, Busuyi, Musoli, Wandago, Katonte and Lugolole) and is one one of the poorest areas in Uganda. Within its area of operation Baitambogwe SACCO has a great potential of expansion. The actual number of potential clients among the 7 parishes is 20,000. That means a repressed demand for loans of almost 19,000 people. Therefore, the expansion of Baitambogwe SACCO client base depends on its own staff sales effort. Established with the purpose of improving the income, productivity, and livelihoods of those living in Baitambogwe sub-county, the SACCO has an established reputation as a trustworthy provider of financial services and serves mainly farmers: some are subsistence farmers, others focus on sugar cane outgrowing and others on food production. Amongst our clients there are also a number of people involved in business activities such as, for example, petty traders, agro processing, transport and eating houses, fishing, mining, and they are primarily located within, or close to, the main trading centre. Baitambogwe SACCO currently makes money through interests on loan products, as well as fees on savings and loans, memberships and stationery products. The SACCO also plans to obtain a tractor which will be hired by members, and non-members, working in the agricultural industry. The provision of such a service will add another income stream to the SACCO’s operations, as well as increase the productivity of members working in the agricultural industry, and consequently improve their capacity to repay loans and increase savings.
