EBO SACCO has become the first cooperative to be officially licensed by Bank of Uganda. While receiving the license, Rosette Kashaija, Chairperson of EBO SACCO, expressed her excitement, emphasizing that this milestone marks the beginning of new opportunities for the cooperative’s growth and expansion.
During the handover ceremony, the Deputy Governor took the opportunity to remind SACCO directors of the importance of adhering to stringent risk management regulations. “You have now declared that you are ready to operate at a higher level. With this comes responsibility, particularly in managing risks effectively to ensure financial stability and sustainability,” he stated.
The SACCO CEO, Joseph Mugume acknowledged that obtaining the license was crucial, as operating a microfinance business in Uganda without proper regulatory approval is not permitted. “Without this license, we would face significant operational challenges. That is why we made the decision to apply, and we are pleased to have successfully obtained it,” he said.
As the first SACCO to secure such a license, EBO SACCO recognizes the challenges that come with compliance, including meeting new capital requirements and loan loss provisions. However, the leadership views this achievement as a major milestone in the cooperative’s development.
The regulation of SACCOs by Bank of Uganda follows amendments to the Microfinance Deposit-Taking Institutions Act of 2022. Under these new regulations, the central bank will oversee at least 42 large SACCOs with savings exceeding UGX 1.5 billion, ensuring greater financial security and stability in the sector.
The Association of Microfinance Institutions of Uganda (AMFIU), where EBO SACCO is a member, extends its heartfelt congratulations on this significant achievement. We commend EBO SACCO for its dedication to financial inclusion and compliance with regulatory requirements. We are confident that this milestone will inspire other SACCOs to pursue similar growth and development.