PDM SACCOs: A Missed Opportunity for Collective Bargaining in Uganda

 

A dilapidated cooperative society store in Dokolo district. It was built by the UPC government in the 1960s as a collection center for cotton growers. Its sorry state now mirrors the state of agriculture in Dokolo and Uganda.

Agriculture accounts for nearly 24% of Uganda’s GDP but employs the majority of Ugandans. So the reference that ‘agriculture is backbone of Uganda’s economy’ is more than correct. However, the sector’s full potential remains untapped due to a lack of collective organization and reliance on exploitative systems.

To genuinely transform rural livelihoods and household incomes, collectivism must take center stage. Organizing farmers into cooperatives not only enhances productivity but also strengthens their bargaining power in the marketplace. Unfortunately, the Parish Development Model (PDM), despite its potential as a good ‘collectivism’ tool, is being misapplied.

Under the PDM, funds are distributed through Savings and Credit Cooperative Organizations (SACCOs), which are inherently cooperatives. However, their purpose has been reduced to mere disbursement of money, neglecting their capacity for collective bargaining, joint marketing, and resource management. Once the funds are depleted, these SACCOs will be left to collapse, instead of being nurtured into permanent, robust platforms for economic empowerment.

True collectivism involves using cooperatives as tools for shared success. Farmers working together can negotiate better prices, access larger markets, and collectively manage resources like transportation and storage. This model ensures that profits remain in the hands of those who produce, rather than being siphoned off by exploitative middlemen.

The PDM’s success will depends on shifting focus from individual production to collective strength. A well-structured cooperative system can drive sustainable growth in agriculture by facilitating shared knowledge, innovation, and equitable access to markets.

For Uganda’s agricultural sector to thrive, policymakers must embrace a collectivist approach, ensuring that cooperatives serve as pillars of both production and fair trade, not just as conduits for disbursing loans.

By empowering farmers through organized collectivism, Uganda can achieve long-term economic transformation, ensuring agriculture lives up to its title as the backbone of the economy.

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