Produce and Marketing Cooperatives Are Better Vehicles For Poverty Alleviation

This publication was authored by: Musa Mugoya

Abstract / Summary

Over the years, the number of SACCOs that have proliferated both in rural and urban parts of the country has been impressive mainly as a result of the self-desire by the masses to save for personal development. The same can be attributed to the promotion of SACCOs by the current regime as a strategy for achieving socio-economic development especially in the rural areas which are ridden with poverty. However, cognizant of the fact that Uganda’s economy is largely agrarian and of a subsistence nature, low productivity is inevitable. Consequently, the population hasn’t been able to ably save and reduce the levels of poverty. The policy paper attributes the aforementioned predicament of a number of rural farmers, ceteris paribus to the stagnation and collapse of the vehicles; produce and marketing cooperatives that offered the necessary agricultural support. Cooperatives offered a certainty of markets to farmers, thus encouraging productivity but most importantly offered a higher bargaining stance for their members among other things. This paper will argue for the importance and the role of both produce and marketing cooperatives and SACCOs in advancing socio economic development especially in rural areas. It further juxtaposes both strategies’ pros and cons and whether it is feasible for the government to advance one of the two or both of them concurrently.