Bank of Uganda has officially granted the first-ever large SACCO (Savings and Credit Cooperative Organization) license to EBO Cooperative Savings and Credit Society Limited.
This historic moment marks a significant shift in Uganda’s financial landscape as EBO SACCO based in Western Uganda becomes the first cooperative society to receive this highly sought after accreditation.
EBO SACCO which has been in operation for over 30 years has now been recognized as a major player in Uganda’s financial sector. With a strong core capital of UGX 16.5 billion, the SACCO has demonstrated remarkable financial stability and growth positioning itself as a leader in cooperative banking.
During the official handover ceremony, Deputy Governor of the Bank of Uganda Prof. Augustus Nuwagaba emphasized the importance of regulatory compliance.
He urged the SACCO’s directors to strictly adhere to financial regulations warning that failure to comply could lead to instability and risks that would undermine the cooperative sector’s credibility.
The licensing process was not without its hurdles. EBO SACCO has spent months embroiled in legal disputes with the Uganda Cooperatives and Savings & Credit Union over regulatory contradictions between Uganda’s Tier 4 Microfinance Institutions and Moneylenders Act and cooperative society laws.
The legal battles raised key questions about how SACCOs should be governed and whether they should be regulated as microfinance institutions or cooperative societies.
While this license clears the way for EBO SACCO to operate under tighter regulations and increased oversight, it also highlights ongoing debates about financial sector governance in Uganda.
Experts argue that clearer laws are needed to bridge the gaps between cooperative financial institutions and mainstream banking regulations.
The granting of this large SACCO license signals a new era for Uganda’s cooperative financial sector. As more SACCOs push for official recognition and licensing, Bank of Uganda’s decision to grant EBO SACCO this status could set a precedent for future applications.
For EBO SACCO members, the license provides increased confidence in the institution’s financial strength and operational legitimacy. It also opens the door for expanded services, including potential partnerships with commercial banks and international financial institutions.
With its new status, EBO SACCO will now be expected to uphold the highest financial standards, ensuring transparency, risk management and sustainable growth.
The regulatory landscape for SACCOs in Uganda is evolving and this milestone could pave the way for other cooperative financial institutions to seek similar accreditation.
As Uganda continues to embrace financial inclusion, the success or failure of this newly licensed SACCO model will serve as a crucial test for the future of cooperative banking in the country.
