The Humble Beginnings
Busiu Saving Credit and Cooperative Organisation (SACCO), in the heart of Mbale District, Eastern Uganda, began as a small Village Savings and Loan Association (VSLA) in 2001 with 30 farmers united by a common goal—to save and access credit during tough times. By 2003, this modest group had blossomed and registered with the Uganda Microfinance Regulatory Authority, boasting 250 members eager for financial solutions. Members paid an annual membership fee of 5,000 UGX and bought shares worth 10,000 UGX (USD 2.7), unlocking access to a variety of loans. The loans were provided at a 3% interest per month. They were mainly for business and agricultural, boda-boda (motorcycle), school fees, home improvements, and emergency loans, each tailored to meet the diverse needs of the community.
Crossing Challenges and Seeking Growth
When the SACCO’s membership soared to 700 in a year, so did the demand for financial services. However, the organization faced hurdles—limited funds and delayed loan repayments hampered liquidity, leading to frustration among members and a decline in trust. These challenges highlighted the need for strategic support to sustain growth and improve service delivery. The SACCO struggled to serve all members promptly, risking deteriorating relationships and financial instability.
The turning point arrived in March 2022 when Busiu SACCO learned about the HortiMAP project through a market survey that was being carried out by TechnoServe and the opportunity to access a horticulture credit facility through Pearl Capital Partners (PCP). Excited by the prospect, the SACCO promptly submitted a proposal, fulfilling requirements such as share capital, membership data, registration, and audited financial statements. Their efforts paid off—they secured a loan of UGX 200 million (54,794) from PCP, as a Horticulture Credit Line (HCL), – a specialised facility for onward lending to smallholder farmers engaged in horticulture. Capacity building sessions with Agriterra in 2023 equipped them with new skills, including the use of a Key Performance Indicators dashboard—a tool that made tracking loan utilisation and serving clients more efficient.
Impactful Transformation and Rapid Growth
With the loan received from PCP, Busiu SACCO increased loan disbursements to farmers from 189 to 277 beneficiaries across multiple groups. The success stories are evident: savings soared from UGX 457 million (USD 125,205) to UGX 600 million (USD 164,383) in less than two years. Membership increased from 3,292 to 4,003, and the loan portfolio doubled from UGX 417 million (USD 114,246) to UGX 840 million (USD 230,136). The agricultural loan portfolio notably grew from UGX 25.9 million (USD 7,095) to UGX 80 million (USD 21,917). This growth has fostered stronger relationships with clients, enabling the SACCO to meet their needs more promptly and effectively. Staff numbers increased from 6 to 10, reflecting the organization’s expanding capacity.
Vision for the Future
Looking ahead, Busiu SACCO plans to open branches in Namisindwa and Butaleja districts within three years and construct modern offices in five years. They aim to add value by purchasing equipment that will help farmers access markets and introduce a new agro-input loan product—partnering with input suppliers to provide farmers with quality inputs on credit. These initiatives will help reduce mismanagement of funds, improve yields, and foster sustainable growth. To support these ambitions, the SACCO will employ more staff with agricultural expertise and deliver capacity-building training on new farming technologies.
A Community Empowered
Shisa Modester, the SACCO manager, expressed her gratitude,“HortiMAP has enlightened us and given us the support to serve our community better. We encourage others to reach out to Busiu SACCO for financial solutions.” With strategic support, capacity building, and community trust, Busiu SACCO is confidently paving the way for economic growth and resilience among farmers in Eastern Uganda.