Uganda Cooperative Savings and Credit Union (UCSCU) an apex of all SACCOs’ in Uganda is implementing the Rural Financial Services program (RFSP) of the Government of Uganda (GoU) the fourth pillar of the Prosperity for All Programme (PFA), with support from the International Fund for Agricultural Development (IFAD)

In 2006 the Government initiated a new Rural Financial Services Strategy with the ultimate objective of ensuring that financial services reach the population in every sub-county in order to encourage savings mobilization and use of these savings deposits as a source of investment capital to rural enterprises in form of loans. Government adopted the Savings and Credit Cooperatives (SACCOs) as vehicles through which rural communities would access financial services. Adopting the SACCO model was based on the fact that they (SACCOs) operate on attested institutional and business model of being democratic/community driven, autonomous, self financing, and savings driven, mobilizing the much needed internal resources.

Government consequently designated UCSCU which is the apex organization for SACCOs In Uganda, to guide their formation in those sub counties where none exist, strengthen those existing – (one per sub county), and ensure that SACCOs adopt and comply with sound business practices and are periodically audited. This designated role is consistent with UCSCU core activities which include providing advocacy, training and education of SACCO members, board and employees. 

UCSCU in collaboration with Rural Financial Services Programme – Coordination Unit of the government of Uganda, is now facilitating productive activities in SACCOs and that the resulting income will in turn increase the capacity of the rural poor to save, acquire assets, and move out of poverty.

According to the RFSP way forward document 2008 – 2011, the Programme has the following components:

Component 1: SACCO Establishment, Strengthening and Outreach which includes supporting the establishment of new SACCOs, strengthening existing ones and supporting strong SACCOs to increase Outreach.

Component 2: Strengthening Apex institutions, Regional Networks and Financial Linkages which includes: (i) UCSCU strengthening and support, (ii) support to Regional/Zonal SACCO networks and Lead Institutions, and (iii) Promotion of linkage banking services.

Component 3: Strengthening Regulation and Supervision which includes (i) support to the independent SACCO Regulatory Agency, (ii) regulatory compliance, (iii) performance monitoring.

Component 4: Programme Administration, Monitoring and Evaluation.