Museveni’s promise to revive Acholi SACCOs: Can “protecting the gains” deliver real economic transformation?

Gulu City | When President Yoweri Museveni returned to Gulu’s Kaunda Grounds for his 2026 campaign rally last month, his message to thousands of supporters centred on one theme: “Protecting the Gains.”

Behind the slogan lies an economic question that has defined his presidency for decades: how to turn government wealth-creation programs into real community transformation.

This time, Museveni promised renewed support for institutional SACCOs across Acholi, alongside additional funding for the Parish Development Model (PDM) and a new loan facility for unemployed graduates.

Museveni announced that his government will allocate revolving loan funds to strengthen SACCOs in cultural and religious institutions and at Gulu University, to promote production and fight poverty in northern Uganda.

“We are going to support institutions; cultural, religious and universities to create wealth and promote agricultural production. Nobody should misuse or steal PDM funds; these are meant to change lives,” Museveni said.

He further pledged shs15 million in additional PDM funds for each parish to help local leaders start borrowing, arguing that the initiative would empower administrators previously restricted from accessing existing PDM resources.

The President also promised to create a University SACCO Fund targeting graduates who have remained unemployed for over two years, giving them access to affordable loans to start enterprises.

The plan, he said, fits into the broader NRM vision of transforming Uganda into an upper-middle-income economy by 2031.

The reality: Dormant SACCOs and missed opportunities

Beneath the pledges lie longstanding structural issues and across the Acholi sub-region, many SACCOs have collapsed or become inactive due to poor management, political interference and lack of follow-through on government commitments.

Martin Okumu, Deputy Prime Minister in charge of finance and investment at Ker Kwaro Acholi said the President’s latest promise comes after years of similar unfulfilled pledges.

“Our SACCO has been struggling due to a lack of capital. We once received a pledge of shs1 billion from the President, but it was never fulfilled,” Okumu said.

“We appreciate the government’s monthly support of Shs60 million to cultural institutions but it is not enough to fund our development programs,” he added.

Okumu further adds that strengthening institutional SACCOs could be a turning point if implemented transparently.

“Our Chiefs are some of the poorest community leaders. Empowering them with a revolving fund could help support local production across the 57 chiefdoms of Acholi,” he said.

According to Okumu, the President’s initiative can revive the Acholi institutions, but there is a need for consistency and to reveal that the Acholi are ready to work, but they only need delivery, not just promises.

Youth unemployment: The broken link in the chain

Northern Uganda continues to face some of the highest youth unemployment rates in the country-despite multiple government interventions from Bonna Bagaggawale to Emyooga and now the Parish Development Model.

For young graduates like Eunice Akello, 27, who completed her diploma in Special Needs Education at Gulu University, the lack of job opportunities has pushed many into informal trade.

“Many graduates are jobless; some end up on the streets or in early marriages. If these university SACCOs come with low interest rates-maybe 5 percent-it will help us start proper businesses,” Akello said.

Akello started her entrepreneurial journey with only Shs 10,000, selling roasted groundnuts, and six years later, she now runs a small second-hand clothing business and owns rental rooms in Gulu City.

According to Akello, her story reflects what many graduates in northern Uganda have had to do-turning necessity into innovation; however, she warns that financial discipline and mindset change are crucial if SACCO programs are to succeed.

“Some youths take loans and spend the money on leisure. We need training in financial management, not just money,” she said.

In Gulu district, local leaders are cautiously optimistic about the President’s pledges, and Alfred Ocen, the District Commercial Officer and PDM focal point person, says progress has been steady but far from perfect.

“Each of our 47 parishes has so far received around shs307 million, reaching 95 per cent of the targeted beneficiaries. If the President adds shs15 million for local leaders; it will fill an important gap,” Ocen said.

However, he noted that implementation must follow clear guidelines from the Ministry of Finance and Microfinance Support Centre for easy monitoring and impact.

Since its launch in the 2021-2022 financial year, the PDM has received shs5.86 trillion, including shs2.4 trillion disbursed in the 2024-2025 financial year, and despite these large figures, limited monitoring, corruption and bureaucratic inefficiency continue to hamper its impact.

Policy analysts: Accountability is the missing piece

Economic analysts argue that while Museveni’s promises align with national development goals, implementation remains the Achilles’ heel of government programs.

Walter Atiko, a senior economist, says the proposed institutional SACCOs could reduce dependency if the government ensures transparency.

“The design is sound, but the challenge has always been accountability. We have seen projects like PDM and Emyooga lose momentum because of poor monitoring and political capture; hence, without institutional discipline, the President’s vision will struggle to materialise,” Atiko explained.

He, however, suggests that institutional SACCOs, if operated independently of political influence, could become “credible microfinance anchors” for sustainable community transformation.

Atiko further noted that true economic transformation will depend not on the amount of money pledged but on the governance mechanism behind it including oversight, capacity-building and local empowerment.

As Uganda approaches another election year, the question remains whether “Protecting the Gains” will translate from campaign rhetoric into a credible economic recovery plan or remain yet another chapter in the long story of unfulfilled potential in northern Uganda.

Museveni’s 2026 manifesto emphasises peace, wealth creation, job creation and regional integration; yet the Acholi sub-region still ranks among Uganda’s poorest, despite decades of government investment.