Savings and Credit Access ORUDE SUSALECO Model Approach Presented by Catherine Amado

About the organization ORUDE is a local NGO supporting rural women & youth access savings & credit. This is done through capacity building and formation of rural women banks using an approach of the Sub County Savings and Lending Cooperatives (SUSALECO).

About the organization SUSALECO model is an approach that merges 250 women from ten savings and lending groups comprised of 25 members each into a SUSALECO (Rural banks)  ORUDE works in seven sub counties in Jinja and Bugiri districts

Explanation on the strategy ORUDE’s strategy mainly focuses on rural women and youth. This approach gives women the opportunity to exercise their ability to save and support each other on economic and social related issues.

Explanation on the strategy This is done through building the capacity of group members in savings and credit, selection of appropriate income generating activities in order to help them increase their levels of savings and shares.

Where has the strategy been applied? This strategy has so far been applied in seven sub counties within two districts of Jinja and Bugiri. These include; Mafubira,Budondo, Butagaya, Busedhe, and Bugembe municipal council in Jinja In Bugiri district, the sub counties include: Kapayanga, and Nankoma.

What has worked well? The model places major emphasis on internal generation of funds through savings and purchase of shares. The shares and savings are loanable to members as opposed to other SACCOs SUSALECO models with its sub-structures (VSLGs and FABAs) are an epicenter for peer learning within the community

What has worked well? The Model inculcates the culture of savings among the members there promoting a sense of ownership Provision of start-up kits consisting of items such as renting an office, furniture, safe, counters boosts the confidence of members.

What has worked well? The process of accessing a loan from SUSALECO is not bureaucratic compared to MFIs. It is relatively cheap in terms of loan application fees compared to MFIs The model provides an opportunity for ploughing back wealth created in the community.

MAFUBIRA RURAL SAVINGS AND CREDIT COOPERATIVE (MARUSACCO ) Case Study At the time of launch MARUSACCO had UGX 3,600,000M on their account. To date, the SACCO has a total of UGX 29, 251,500M, in shares and savings MARUSACCO has helped many people mainly women to easily access credit to improve on their agriculture and carry out other income generating activities.

MAFUBIRA RURAL SAVINGS AND CREDIT COOPERATIVE (MARUSACCO) Case Study So far, the bank has disbursed loan worth UGX 35,355,000=. At the time of launch MARUSACCO had UGX 3,600,000M on their account. To date, the SACCO has a total of UGX 29, 251,500M, in shares and savings

MAFUBIRA RURAL SAVINGS AND CREDIT COOPERATIVE (MARUSACCO) Case Study A case in point is, Mudoola Aisha who acquired a loan of 100,000 one hundred thousand shilling which she added into her charcoal business She purchased 14 bags of charcoal at UGX 7,000 each She sold each bag at UGX 25,000 in total raised UGX 350,000

MAFUBIRA RURAL SAVINGS AND CREDIT COOPERATIVE (MARUSACCO) Case Study  After deducting her initial capital of 100,000, labour and transport costs of UGX 70,000 shillings making a profit of UGX 180,000.  She paid back her loan and re-invested into her business  Today, Mudoola has requested for a loan UGX 1,500,000 since her business has grown.

What has NOT worked well? The funds generated in the SUSALECO does not meet the credit demand of the members. The merging of VSLGs into one entity or a SUSALECO assumes that such groups are homogeneous.

What has NOT worked well? The model is expensive in terms of investments made in form of the start-up kits. A good number of SUSALECO members are illiterate and yet they are expected to play active roles in management

What has NOT worked well? The model puts much emphasis on purchasing shares as opposed to savings. Dependence on internally generated funds implies that the SUSALECO is exposed to external shocks affecting the community and members.