Gudie Leisure Farm Hosts a Transformative Savings and Loans Associations Conference

On Monday, 5th August 2024, Gudie Leisure Farm welcomed over 300 cottage managers from 33 districts across Uganda for the highly anticipated Savings and Loans Associations Conference. This full-day event, which kicked off at 8:00 AM, was an inspiring convergence of industry leaders, entrepreneurs, policymakers, and ambitious youth Agripreneurs, all eager to network, explore innovative strategies, and discuss the latest trends in the cottage industry.

Opening Remarks by Dr. Gudula Naiga Basaza, Managing Director and Founder of Gudie Leisure Farm

The conference began with a powerful keynote address from Dr. Gudula Naiga Basaza, the visionary founder of Gudie Leisure Farm. Dr. Basaza warmly welcomed all attendees and provided a comprehensive overview of the farm’s operations. With a footprint in 33 districts across Uganda, Gudie Leisure Farm has established itself in 873 parishes, making significant strides in the agricultural sector.

Dr. Basaza highlighted the incredible impact Gudie Leisure Farm has made by incubating 388,513 Youth Agripreneur Champions. These young leaders have embraced continuous virtual learning, driving production by the masses, and contributing to the establishment of five major industries—Feed Mill, Animal Husbandry, Franchise Bistro, Nutraceuticals, and Services—each within their respective parishes. The value chain linkage of these champions spans from the parish level to the district, regional, and national levels, ultimately reaching 226,254 Youth Agriclub Agripreneurs.

Dr. Basaza proudly shared that Gudie Leisure Farm has an umbrella fund allowing youth to access up to three times their deposits at a friendly interest rate of just 6% per year. She also extended her gratitude to the Mastercard Foundation for facilitating District Advisory Council meetings, which have provided a platform for youth to showcase their achievements to district leaders.

Dr. Basaza announced that within Gudie Leisure Farm’s network, youth have received a total of 3.8 billion shillings from the Parish Development Model Fund, 9.7 billion shillings from the Youth Livelihood Program, and 11 billion shillings from the Emyooga Fund in the current quarter. These funds have empowered the youth to grow their businesses, with 56% of them acquiring land and six parishes purchasing vehicles for their enterprises. In light of these successes, Dr. Basaza revealed that the farm is currently fundraising to ensure each Parish Enterprise Learning Association (PELA) has a feed mill.

Dr. Basaza also addressed the importance of Parish Saving and Loan Associations (PSLAs), which the youth have formed within their PELAs. These associations foster a saving culture, pooling resources to serve underserved, hard-to-reach youth, and providing them with easy access to finances with minimal discrimination against agriculture. However, she acknowledged the challenges PSLAs face, such as limited capital, short-term saving habits, high-interest rates, high default rates, and informality.

Remarks by Mr. Adrian Bukenya, Country Director, Uganda, Mastercard Foundation

Following Dr. Basaza’s address, Mr. Adrian Bukenya, Country Director for Uganda at the Mastercard Foundation, took the stage. He acknowledged Gudie Leisure Farm as one of the foundation’s first partners under the Young Africa Works Strategy. Mr. Bukenya expressed his admiration for the farm’s ambitious goal of getting 1 million youth into work by 2030 and emphasized the importance of aligning their impact measurement and monitoring and evaluation strategies with the foundation.

Mr. Bukenya also highlighted the need to track the secondary impact of funds coming from the Parish Development Model Fund. He urged the conference participants to challenge the Bank of Uganda to focus on enabling non-collateralized lending, stressing the importance of measuring the behavior of PELAs and saving groups.

He encouraged Gudie Leisure Farm to share its story of interacting with the Mastercard Foundation, highlighting both the successes and areas for improvement.

Insights from Carolyne Ariokot, FSDU Intervention Manager MSME Finance and Coordinator, Young Africa Works Community of Practice on Inclusive Finance

Carolyne Ariokot provided an insightful presentation on financial inclusion in Uganda. She noted that the country has seen growth in financial inclusion, with 81% of adults having access to financial services in 2023, up from 77% in 2018. However, she emphasized the need for the participating youth to build a credit and transactional history, advising them to use the knowledge gained from Gudie Leisure Farm to start small ventures.

Ms. Ariokot cautioned against get-rich-quick schemes and urged the youth to work hard, quoting Muhammad Ali: “The fight is won or lost far away from witnesses—behind the lines, in the gym, and out there on the road, long before I dance under those lights.” She also elaborated on the Young Africa Works Strategy, which aims to see 30 million young people across Africa access dignified and fulfilling work by 2030, with 3 million of those in Uganda.

To support the youth in their financial endeavors, Ms. Ariokot shared a list of financial service providers offering low-cost capital across various regions in Uganda.

Empowerment from Life Coach Helen (LCH): Transforming Self-Doubt into Self-Mastery

Life Coach Helen (LCH) inspired the youth to embrace available saving schemes, encouraging them to diversify their savings to cover health, land acquisition, home improvement, and other essential needs. She emphasized the convenience of digital saving through SACCOs, making it possible to save from anywhere.

Life Coach Helen offered to work with the youths by helping them to achieve their goals through her website Life Coach Helen.

Best Practices Shared by Danstan Kisuule, CEO & Founding Chairman of Y-SAVE

Mr. Danstan Kisuule provided a deep dive into the principles and best practices for building strong and sustainable savings and credit groups. He defined SACCOs as business organizations owned and operated by members for their mutual benefit, emphasizing that SACCOs must provide visible and tangible economic and social benefits to outweigh the costs involved in cooperation.

Mr. Kisuule highlighted the importance of unity and shared the origins of Y-SAVE (Young Savers Association for Ventures And Entrepreneurship), a 24-year-old organization. He outlined the advantages of being a member of a savings group, including the structure and support it provides, the spreading of investment risks, and the opportunity to pool diverse ideas and expertise.

He also warned of common pitfalls associated with savings groups, such as leadership challenges, delayed contributions, and differing investment objectives among members. Despite these challenges, Mr. Kisuule concluded by sharing the numerous benefits of being part of a savings group, including higher savings interest rates, lower loan interest rates, and quicker loan acquisition.

Financial Markets Overview by Mr. Mwima Andrew, Financial Markets Consultant, Representing the Capital Markets Authority

Mr. Mwima Andrew provided a comprehensive overview of Uganda’s financial markets, distinguishing between money markets and capital markets. He explained that capital markets are platforms where various financial and investment instruments are bought and sold, helping institutions raise finance through debt or equity.

Mr. Mwima also discussed the benefits of investing in shares, bonds, and collective investment schemes. He emphasized the importance of diversifying investments and conducting thorough research before investing in any venture.

Insights from Bank of Uganda Representatives on Investing in Treasury Securities

Representatives from the Bank of Uganda concluded the conference with a presentation on investing in government securities, including Treasury Bills and Treasury Bonds. They explained the operational modalities of investing in these instruments and highlighted the benefits, such as diversification, assured regular income, and the ability to use these investments as collateral for loans.

The youth participants were also informed about the Agriculture Credit Facility and Small Business Recovery Fund, which can be accessed through commercial banks. The Bank of Uganda created these facilities to ensure price stability in the agricultural sector in a socially transformational way.

Conclusion

The Savings and Loans Associations Conference at Gudie Leisure Farm was a resounding success, offering valuable insights, networking opportunities, and practical advice for the youth Agripreneurs in attendance. As Gudie Leisure Farm continues its mission to empower Uganda’s youth through agriculture, this conference served as a pivotal moment in strengthening financial inclusion, promoting sustainable savings practices, and fostering entrepreneurship across the country.