MANDATE

The department is responsible for policy formulation, planning and coordination of cooperatives development.
FUNCTIONS
The main functions of this department are to: 
i)    Initiate and formulate policies, legislation and strategies for cooperatives development;
ii)    Supervise and monitor cooperatives to ensure they operate within the established cooperative laws and set objectives for the benefit of members;
iii)    Register and deregister cooperative societies;
iv)    Promote formation of Co-operative societies;
v)    Provide and administer the technical services required for the formation, organisation, registration and operation for the cooperative societies;
vi)    Facilitate the establishment of marketing infrastructure (Warehouse Receipt System, Rural Information System) to improve marketing of goods by cooperatives;
vii)    Support commodity exchange and other distribution mechanisms;
viii)    Manage the Cooperative Management Information System (CMIS);
ix)    Building capacity for the Cooperative members;
x)    Develop and promote standards for sound cooperative business management; and
xi)    Coordinate, promote and support establishment of linkages and partnerships with other Ministries, Departments and Agencies (MDAs) and private sector to enhance values and benefits from the sector;

ACHIEVEMENTS 2007/2008
1.    The department through regional consultations drafted a National Cooperative development policy to be completed in FY 2008/09.
2.    Through registration the Ministry captured 10,687 cooperatives in the database system.
3.    The department supervised cooperative societies in the areas of Kyenjojo, Luwero, Nakaseke, Mpigi,Mubende, Busia, Kampala districts; attended 30 Annual General Meetings; Resolved cooperative disputes in Kabale, Mbarara, Kamwenge and Mpigi.
4.    A number of cooperatives and traders were sensitized on WRS in Kasese, Mayuge, Iganga, Kotido districts and this will continue to the rest of the districts.
ACHIEVEMENTS 2008/2009
1.    The Ministry through regional consultations drafted a National Cooperative development policy that is before cabinet for approval
2.    By the end of 2008, 3528 SACCOs had been mobilized, formed and registered to provide rural financial services to the communities
3.    A total of 3881 SACCOs have been mobilized, developed and registered. Suffice to note that these have mobilized savings and share capital to a tune of over 100 billion Uganda Shillings. By the end of February 2009, there were 5,878 registered producer cooperatives compared to 5085 at the end of 2008 registering an increase of 16%.
4.    As at the end of February 2009, there were 103 secondary societies (ACEs, Unions) involved in value addition and collective marketing compared to 65 secondary societies at the close of 2008.This has led to stabilization and increase of prices in commodities such as dairy, coffee, bananas, maize, honey to mention a few
DEPARTMENT PLANS FOR 2008/2009
1.    The department is to concentrate on amending the cooperative Societies Act (CAP 112), Cooperative Societies Regulations (1992) and the various model bye-laws;
2.    Sensitizing staff of the department and district officials on the new cooperative database system and testing; collecting, entering and analyzing data.
3.    Attend 35 Annual General Meetings and train 6 members of staff in handling cooperative matters;
4.    Develop operational guidelines for officials of cooperatives
5.    Organize the international day of cooperatives.
6.    Also planned is the inspection and supervision of SACCOS, Unions, ACEs
7.    Train Committee Officials in cooperative governance legislative compliance, entrepreneurship, record keeping, marketing, supervision, inventory credit;
8.    Train Supervisory and management Committees of SACCOS; organizing exhibitions, publicity and promotion activities.
MAJOR CONSTRAINTS
The department has managed the above achievements in the face of many constraints. Some of the major constraints are:
     1.Linkage with Local Government:
      Most of the work is in the field and yet most districts do not adequately provide staffing for the department, and in some there is no provision for any staff. Thus, there is weak linkage between the centre and local authorities.
  2.Policy and Legislation:
      There is fast growth of cooperatives especially the SACCOs but the current law is biased towards agriculture. The cooperative development policy, which is being developed through a consultative process will lead to the revision of the law.
   3.Budget:
      The department has a very low budget, yet most of the activities including training and sensitization require field travel.

Strategic Policy Issues and the Way Forward
   1. Ensure that there is a Cooperative Development Policy in place. The policy will help to focus the development and growth of the movement in well-defined and coordinated manner.
2. Review the Cooperative Legislation to ensure that there are adequate provisions for proper regulation and supervision of Financial Services Cooperatives and other Specialized societies. Also unnecessary restrictions that impede efficiency and competitiveness will be removed without, of course, compromising cooperative principles and values.
  3. Restructure the Cooperative Movement to make it efficient in the delivery of services to its members. This process will review the current organisational structure of the movement to ensure it is not expensive to maintain and also allows direct linkages with the service providers. The structure will be flexible to allow participation in all sectors of the economy.
  4. To develop a cooperative movement that generates finances internally that will eventually ensure that cooperatives are self-sufficient. The capitalization of the movement has in the past not been emphasized which made it vulnerable and dependant on borrowed or donor money for business.
 5. Ensure that Financial Services-Cooperatives reach most parts of the country, are well supervised and regulated.
   6. Improve the marketing infrastructure of the cooperatives and encourage value added. This will be done through the implementation of Warehouse Receipt System and Commodity Exchange with linkages to Area Marketing Co-operative Enterprises, Cooperative Unions and primary societies.
  7. To ensure that Cooperative are well positioned to participate actively in Poverty Eradication Programmes like PEAP, PMA, NAADS, Rural Micro-finance Outreach Plan, and Employment Creation.

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