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Lango Unity Grains Dealers SACCO aims to diversify revenue streams

(Last Updated On: 15 March 2024)

Lira I Lango Unity Grains Dealers SACCO (LUGD) is a registered entity with the Ministry of Trade, Industry and Cooperatives.

During their annual general meeting held on March 14, 2024, in Lira City, the shareholders, among other things, discussed key strides and challenges over the past years, and expectations five years ahead.

Juliet Alaba Opio is the chairperson of LUGD. She told tndNews they intend to improve membership growth by actively promoting the benefits of joining the SACCO to grain dealers in Lango sub-region.

To achieve their targets, she said they will target marketing campaigns, outreach programs, and partnerships with local agricultural organizations.

Each share is worth shs25, 000. Other charges are shs20, 000 and shs50, 000 for membership and annual subscription, respectively.

In the next five years, they will be working towards improving the financial stability of the SACCO by increasing savings, reducing debt, diversifying revenue streams; implementing sound financial management practices and investing in income-generating projects to sustainably grow the SACCO’s resources.

On product and service expansion, Alaba said they will continuously assess the needs of members and explore opportunities to expand the range of financial products and services offered by the SACCO.

“This could include savings accounts, loans for agricultural inputs or equipment, insurance products, and financial education programs.”

Embracing digital technologies to enhance the efficiency and accessibility of their SACCO services, will be key, she added, further revealing that there is a plan to invest in a user-friendly mobile banking platform, online account management systems, and digital payment solutions to cater to the evolving needs of members.

Strengthen ties with the local community by actively participating in initiatives that promote economic development, agricultural innovation, and social welfare. Collaborate with government agencies, NGOs, and other stakeholders to address common challenges and create positive change in the region,” the chairperson. 

“On sustainable growth, we will pursue a growth strategy that is both sustainable and inclusive, balancing the need for expansion with prudent risk management and member welfare and foster a culture of innovation, adaptability, and continuous improvement to stay relevant in a rapidly changing environment,” the chairperson explained.

“By focusing on these key areas and setting ambitious yet realistic goals, you can position Lango Unity Grain Dealers SACCO for long-term success and make a positive impact on the livelihoods of its members and the broader community,” she added.

The SACCO achieved a profit growth of over shs4m in 2022 and over shs2m in 2023. “The SACCO aims to maintain and even increase profitability through strategic financial management and diversification of revenue streams.”

According to the chairperson, the commitment and willingness of the Executive Committee (Excom) to lead the SACCO is a significant asset. “This dedication will continue to drive growth and success through effective decision-making, transparency, and accountability.”

Low membership subscriptions remain a big concern for Excom, she revealed, stating that addressing the challenge requires targeted marketing and outreach efforts to raise awareness about the benefits of membership.

Incentives such as reduced loan interest rates or dividends for active members could be implemented to encourage bigger participation, she forecasted.

“To overcome limited participation in SACCO activities by shareholders, initiatives such as regular meetings, workshops, and training sessions should be organized to educate shareholders about the operations, encourage engagement, and foster a sense of ownership.”

Addressing challenges such as low grain prices and a drop in grain quantity after prolonged storage, the chairperson said, requires proactive measures, including monitoring market trends, diversifying product offerings, exploring value-added services; and optimizing storage and preservation techniques.

Looking into the near future, they will invest in addressing risk management using strategies to mitigate market volatility, minimize exposure to price fluctuations, and safeguard financial health.

“By undertaking all the above plans, Lango Unity Grain Dealers SACCO can achieve sustainable growth, profitability, and positive social impact over the next five years,” Alaba told tndNews. 

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