Uganda’s cooperative sector is making history. At the recent National Cooperatives Conference in Kampala, stakeholders unveiled the National Cooperative Credit and Savings Society as the first concrete move to revive the Uganda Cooperative Bank, which was liquidated in 1999.
Ivan Asiimwe, General Secretary of the Uganda Cooperative Alliance, told delegates that more than 46,000 registered cooperatives, with 18 million members and employing 16 percent of Ugandans, have agreed to unite under this new entity. Cooperatives currently contribute nearly 2.86 percent of GDP, with wide involvement in agro‑processing, education, and trade.
Although Cabinet has endorsed the revival, the cooperative movement understands that transforming into a commercial bank entails rigorous regulatory compliance. Among the major hurdles are capitalization, setting up infrastructure, and recruiting skilled personnel as required by the Bank of Uganda.
For now, the strategy is gradual. The National Cooperative Credit and Savings Society will operate initially as a Tier‑4 financial institution to allow capacity building and compliance. By the end of the current year, a review will consider transitioning to a microfinance institution, with a long‑term ambition of becoming a fully licensed commercial bank within five years.
Government officials are backing the initiative. State Minister for Cooperatives Frederick Gume Ngobi described the launch as the “culmination of a journey” that stretches over several years. Trade Minister Francis Mwebesa added that public programmes such as the Parish Development Model and Emyooga funds will be channeled through the cooperative bank when fully functional.
The proposed revival carries deep symbolic and practical importance. The original Cooperative Bank, founded in 1964, was closed in 1999 following mismanagement and insolvency. Its absence had long been felt especially by rural cooperatives and farmers, many of whom struggled to access low‑cost credit under commercial bank terms.
Still, significant challenges remain. Cooperatives must align their internal governance, financial reporting, and operations to meet stringent regulatory standards. They must also mobilize enough capital to satisfy central bank requirements, and invest in systems and personnel to maintain financial discipline and transparency.
If these efforts succeed, the revived bank could become a major vehicle for financial inclusion in Uganda, especially in rural areas. It promises to offer cooperatives, farmers, traders, educators, and small business owners access to affordable, reliable credit, savings platforms, and financial services tailored to their needs.