Uganda moves to revive Cooperative Bank with launch of National Cooperative Savings and Credit Society

September 19, 2025 in Business, Finance, Land & Agriculture, Trade & Industry by Editor

Uganda previously had a Cooperative Bank, which was dissolved by the Bank of Uganda during a spate of bank failures in the mid-1990s. NCSCSL represents the cooperative sector’s attempt to re-establish a member-driven banking platform over the coming years.

Uganda’s cooperative movement has taken the first step toward re-establishing a dedicated Cooperative Bank with the launch of the National Cooperative Savings and Credit Society Limited (NCSCSL) at the National Cooperative Conference 2025.

The initiative aims to address longstanding challenges faced by Uganda’s farmers and cooperatives, including limited access to finance, weak governance, regulatory hurdles, and low levels of digitisation and cooperative education. Uganda has more than 21,000 registered cooperatives in sectors ranging from agriculture and housing to transport and fisheries. NCSCSL is expected to provide accessible financial services while mobilizing national resources to strengthen savings and credit institutions (SACCOs).

“The launch is not just about creating a financial institution—it is about building a legacy of self-reliance, solidarity, and economic empowerment for all Ugandans,” said Jonas Tweyambe, Chairperson of the Uganda Cooperative Alliance (UCA).

NCSCSL will begin as a Tier 4 cooperative society under the Registrar of Cooperatives. This allows cooperatives to pool resources gradually, strengthen governance, and build ownership before moving through phased upgrades to Tier 3 Microfinance Deposit-taking Institution, Tier 2 Credit Institution, and ultimately a fully licensed Tier 1 National Cooperative Bank. Phase 1 aims for UGX 10 billion in capitalization, with a long-term target of UGX 200 billion.

Membership is open to all registered primary and tertiary cooperatives, with shares priced at UGX 100,000 and a minimum of 10 shares. So far, over UGX 86.5 million has been pledged, including UGX 10 million from the UCA. Governance will be overseen by a nine-member board and a 14-member interim steering committee representing major cooperatives and key government ministries.

The National Cooperative Conference 2025, themed “Driving Inclusive and Sustainable Livelihoods through Cooperatives for a Better World,” provided a platform to discuss policy, celebrate cooperative achievements, and promote inclusion of women, youth, and marginalized groups. President Yoweri Kaguta Museveni, Cabinet ministers, Members of Parliament, development partners, and cooperative leaders attended.

State Minister for Cooperatives Fredrick Gume noted that the law allows the initiative but emphasized the need for discipline, capital, and commitment from cooperators to see it through. Conference highlights included exhibitions of cooperative innovations, policy discussions on financing and digital transformation, and recognition of outstanding cooperatives.

Uganda previously had a Cooperative Bank, which was dissolved by the Bank of Uganda during a spate of bank failures in the mid-1990s. NCSCSL represents the cooperative sector’s attempt to re-establish a member-driven banking platform over the coming years.