Helping cooperatives achieve their ambitious business plan through self-financing Internal Capitalization workshop
Agriterra’s Internal Capitalization workshop is beginning to improve the share capital positions of two Cooperatives (Panyimur Dei and Sebei Multipurpose SACCO) in Uganda. During the Cooperative Assessment of Panyimur Dei in December 2019, and Sebei SACCO in July 2020, the two cooperatives were undercapitalized to finance the set ambitious business plan presented to Agriterra and SNV in the CSA. The stakeholders were interviewed, and they expressed lack of trust and confidence in their cooperatives.
The lack of capital identified during the assessment was hindering investments capacity of the two Cooperatives. Agriterra organized Internal Capitalization trainings to support the two cooperatives to achieve their vision of being self-financing cooperatives.
Panyimur’s balance sheet position in 2019 showed a total equity of Euro 16,650. Three months after the Internal Capitalization trainings, Panyimur Dei Cooperative had mobilized additional Euro 15,000 in share capital alone, which has increased the investment capacity of the cooperative into Climate Smart (CSA) business opportunities.
Likewise, Sebei SACCO showed a total equity of Euro 77,008 in the balance sheet during the assessment in July 2020. Three months after internal capitalization workshop by Agriterra, Sebei SACCO has mobilized additional capital through the sale of shares of Euro 31,586. The improvements in equity positions of the two cooperatives have already attracted external finance from other banks who are interested in investing in the cooperatives. There are already positive outcomes resulting from the Internal Capitalization workshop by the cooperatives management as they can now order for services to address members needs.