Unlike other developed countries and areas, the rural wards and villages of Karagwe do not have convinient access to large banks and cannot benefit from their services. In response to this, KADERES began supporting Savings and Credit Cooperative Societies (SACCOS) over 7 years ago. Now, in 2009 KADERES is supporting 11 SACCOS in the district of Karagwe.
The 11 SACCOS are located in the following villages: Kituntu, Igurwa, Kimuli, Kyerwa, Kaisho, Kikakanya, Nyabiyonza, Chakanya, Nyaishozi, Kiosa and Nyakatuntu.
We have recently received applications for 9 SACCOS-Murongo, Karaseco, Ndama, Nyakagoyagoye, NKK, Kihanga, Nyakahanga, Kitwe and Bweranyange-requesting our facilitation and support.
With assistance from HIVOS, the SACCOS we are supporting have made it possible for peasants, farmers and others to have cash savings. Before, these individuals had their savings in objects (animals, land, etc.). When trading and selling these objects for money to buy basic needs, the people were getting a "throw away" price resulting in a huge loss. Now, through SACCOS based in rural villages and wards, social economic programs have been promoted so the people are able to receive loans from the SACCOS to start small businesses, send their children to school, harvest their crops, etc. There is no better way to support the rural community in a sustainable way than through providing the opportunity to save money and attain affordable loans which will carry over into all parts of their lives.
With the intention of connecting the SACCOS leaders together, KADERES has facilitated the formation of the Karagwe SACCOS Network Limited. The leaders meet quarterly to discuss the performance of the SACCOS, share new information and experiences to learn from each other and create new strategies to face the obstacles their are finding.
The main objectives of this program are:
- To coordinate and advise on members developmental activities
- To receive management reports from members and act upon them accordingly
- To develop communication/information systems
- To build capacity of members committees, secretaries and members through educational programs
- To make contact with various donors on resource mobilization
- To become a financial institution which is owned by its members
A new project KADERES has formed as of July 2009 (but is still in trial stages) is the Warehouse Receipt System. This program is specifically designed to enable the peasants of Karagwe to receive fair price for their organic agriculture, which is primarily beans, maize and coffee. Although KADERES is still planning the details of the system, this is how the program will function:
The peasants participating must be SACCOS members who, after harvesting, will transport their crops to a warehouse that is managed by KADERES Peasants Development Ltd (a company under KADERES aiming to facilitate SACCOS members to operate the Warehouse Receipt System at affordable costs). After bringing his/her crops, the peasant will be given a voucher indicating the quantity and quality of the crop he/she has brought and the value of the commodity. The peasant can choose to either take the voucher to the SACCOS and receive up to 75% of the total value OR use at the SACCOS as collateral to attain a loan. Once the commodities have been sold, the peasant will be paid the remaining balance, minus the operating costs.
With this system, the peasants will receive a far higher price and exclude the "middle-man" they encounter when selling at the local markets.
Following the implementation of the Warehouse Receipt System, KADERES has created a future plan aiming at 2011 where through the funding of the KADERES Seed Capital Grant, SACCOS, its members and other stakeholders will form a Community Bank of Karagwe. This bank with strengthen the provision of financial services in Karagwe District.
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