Housing Finance Bank ( @housingfinanceU) and the Uganda Cooperative Alliance (UCA) signed a partnership to extend affordable financial solutions to cooperatives that can provide affordable homes.
The targeted cooperatives are those aiming at providing affordable homes and financial independence for all Ugandans, especially those in SACCOs.
The two entities believe that it is through such partnerships that the government will be able to address the housing crisis.
Through this, the government will ensure that the citizens have access to adequate, safe, and affordable housing, basic services, and upgrade.
UCA is an organisation that covers over 23000 registered cooperative unions and societies in Uganda.
It is a nonprofit organisation promoting and supporting government efforts in achieving the social-economic transformation of the country through cooperative development.
Cooperatives in all sectors of the economy, such as agriculture, housing, transport, and Emyooga/skills-based are represented by UCA which was established in 1961 to serve as the voice of the cooperative movement, both at national and international levels.
As part of the partnership, Housing Finance Bank committed itself to establish a scheme where it will offer its loan facilities, relevant bank products, and services like incremental housing, agent banking services, agricultural loans, etc, to the eligible cooperatives under the alliance.
Housing Finance Bank will further partner with Cooperative Insurance Company (CIC), the insurance partner of UCA, to offer insurance to the bank customers with consent from the customer under regulating guidelines.
According to Mr. Micheal Mugabi, the Managing Director at Housing Finance Bank, partnerships with credible and like-minded organisations play an essential role in ensuring that Ugandans have access to affordable financing services.
“One of our focus areas under the Sustainable Development Goal II is to drive sustainable cities and communities. For this reason, the provision of tailor-made solutions to suit our ever-changing customer needs remains in the heart of the business,” said Micheal Mugabi.
“For fifty years now, Housing Finance Bank has continued to provide possible solutions that enable home ownership for all Ugandans, and together, we shall leverage on all available platforms to ensure decent, affordable, and environment-friendly living and homeownership,” he added.
UCA General Secretary Ivan Asiimwe said the partnership will enable access to long-term capital for members. “We have partnered with the bank so that we can ease access to bank services and products for cooperatives in this country,” he said.
The housing deficit stands at 2.4 million housing units and Housing Finance Bank, a 100% government-owned commercial bank is championing the Sustainable Development Goal 11.1 agenda: to ensure that by 2030 all Ugandans have access to adequate, safe, and affordable housing, basic services; and upgrade slums.
Mugabi added that through this partnership, the bank pledges to support SACCOs by providing affordable credit to members with an emphasis on incremental housing loans targeting low-income earners, partnering with UCA to deliver financial literacy, technical assistance, and capacity building to SACCOs and Mitigating financial loss caused by different risks
furthering financial inclusion