Way Forward for Nakyerongosa village, Uganda

FROM DYING TO IMPROVED STANDARDS OF LIVING IN NAKYERONGOSA VILLAGE, UGANDA

Kasoma Abudu, a community leader who is 73 years old and a resident of Nakyerongosa village has a lot to be thankful for. He recounts how the people in Nakyerongosa village were often ill and even at risk of dying because the only water they had to drink was dirty and unsafe. “Do you see the problem we had?” he asked. “We used to fall sick every time. We needed clean water and needed it urgently.”

In Nakyerongosa parish, the whole community was suffering because the few water points which were constructed/protected years ago were all broken down. But thanks to COMASA and VAD for their support, many changes have taken place in the village.

The Nira pumps have been installed and hand dug wells have been constructed. Nine (9) 2,000 liter capacity water jars have been constructed in households of elderly and disabled people and 3 ordinary springs have been protected. Two community masons have also been trained to ensure that water continues to flow in the future.

Having access to safe and clean water has transformed village life. Kasoma Abudu has time to earn an income and grow vegetables. My grandsons and daughter have more time to concentrate on school activities because they no longer walk long distances to fetch water.

We are very grateful to COMASA for their generous support which has helped to bring safe and clean water to the people of Nakyerongosa. They have given us health and hope for a better and brighter future.

After the various achievements acquired in the field of water and sanitation, the people in Nakyerongosa village would like to begin pooling resources together so as to be able to borrow money and establish small scale businesses. The Worldschool is assisting Nakyerongosa village to work out a way in which the micro- credit will work.

It is anticipated that the people will be able to save their money with the micro-credit association which are locally referred to as SACCOs. The SACCO will manage people’s savings, shares and funds (money) obtained from any where like a donor so that they can give credits to the people at affordable interest (usually 10 -15%). The people will borrow this money and invest into their small income generating projects. On repayment, other people will also get a chance of accessing loans.

It is my sincere hope that the people who have been supporting Nakyerongosa village while working on water and sanitation activities will likewise provide us with more support. I call upon you to assist Nakyerongosa as we strive to increase household incomes.

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This is with reference to the following in your message

quote-

It is anticipated that the people will be able to save their money with the micro-credit association which are locally referred to as SACCOs. The SACCO will manage people’s savings, shares and funds (money) obtained from any where like a donor so that they can give credits to the people at affordable interest (usually 10 -15%). The people will borrow this money and invest into their small income generating projects. On repayment, other people will also get a chance of accessing loans.

- end of quote

My personal opinion is as under:

- The interest rates of 10-15% are too high. The borrowers will not be able to service such loans. You must work in a regime of interest-free loans for the population below self-sustenance levels. If at all interest on loans is to be charged from the people, it must be at very low rates like 2-3%.

- The people must be themselves encouraged to contribute from their own earnings, so that dependence on funds from external sources is either totally eliminated or minimized. These individual contributions can reflect in the account of each member, and such contributions can also earn interest as decided by the fund manager. The fund manager can be a local bank. Loans can be given out from the collected funds, and the whole process can be managed by a committee whose members could be from among the village population who are contributors of the funds. In case any member wants to resign from the scheme, the entire contribution of this member, along with the interest, can be immediately returned to this member.

Vijai

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Hello Vijai,

Thank you very much for your input. We are in the process of beginning the micro-credit association, and it will be operated by the community. There are many SACCOs in Uganda and each is operating in its own way.

We therefore appreciate all the ideas that we can get to come up with something that is sustainable and affordable to all. I will pass on your ideas to my colleagues.

Regards,

Kaggwa

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Hello Asuman,

I am pasting below my recent post at Kabondo. You could follow further posts on the thread at Kabondo through this link:

http://www.nabuur.com/en/village/kabondo/project/task/key-success-factor...

Vijai
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posted by me - Fri, 2009/11/06 (Kabondo on nabuur)

This is a model that does not need funding from outside. The steps could be broadly as under:

AA
A group is to be formed. Membership of the group could be through a share certificate. Each share could be priced as mutually agreed by the group. The group could nominate a 5-6 member committee from among themselves to manage all affairs of the group. Members on this committee could be selected through ballot from among the members annually.

BB
The amount collected as share money could be deposited in a bank. This money would earn interest in the bank. Corresponding interest is to be reflected in the accounts of each member separately and the members' accounts are to be maintained by the committee.

CC
As more members join, the deposits in the bank would increase through the remittances of shares allotted to the new members.

DD
From the funds that collect over a period, the committee can decide to start providing loans to the members. The maximum amount of loan could be decided by the committee depending on the funds situation. Repayment of the loan could be in installments, and rate of interest on loan repayment could be kept low so that members can benefit.

EE
In case a member wishes to resign, the total deposits by this member including interest, minus the loan due, could be paid back to the member and his share certificate could be cancelled by the committee.

FF
When things are working fine over a period, in case a larger loan is required, the group can negotiate with the bank for interest rates, and repayment terms etc.

GG
Modifications in the scheme for the benefit of the members could be done as the scheme progresses. The basic philosophy must be to benefit the members in all cases.

HH
Keep the scheme simple, and basic, and easy to understand by all. Do not complicate through intricate mechanisms which members find difficult to understand or implement.

Vijai

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Dear Vijai,

Thank you very much for the info. It is very helpful and will enable us to make a way forward.

Regards,

Kaggwa

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Isn't it amazing how basic necessities in any community makes life so much better? Hats off to those who were involved in building a waterway that provides clean water and plenty of it. These are the types of organizations that people are willing to support financially. Continued success to you in all future endeavors. casino en ligne

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Thanks for the best wishes. It's indeed amazing how something that seems to be very little brings hope to many people in the community. I will continue to communicate to nabuur neighbours about success stories in Nakyerongosa.

Thanks and kind regards,

Kaggwa

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