KFCC officials in Tiribogo celebrate after the outfit gains the status of a perpetual legal entity there. Photo courtesy of KFCC

Uganda names its cooperative banking system after KFCC

The Korean Federation of Community Credit Cooperatives (KFCC) announced on July 22 that it had gained the status of a perpetual legal entity in Uganda’s cities like Tiribogo and Kololo.

This means that the KFCC has become an official financial outfit of the country, which has acknowledged the viability of the KFCC’s business model.

In addition, the Ugandan government opted to call its cooperative banking “MG Community Credit Cooperative Society,” showing its willingness to benchmark the Korean model.

MG is included in the Korean-language title of the KFCC.

The KFCC has cooperated with Korean government agencies and the Korean embassy in Uganda to share the sustainable growth model in the African country.

And the efforts seemingly bear fruits despite the virus pandemic, which caused greater financial distresses in underdeveloped economies over the past two years.

In the case of the Tiribogo village, where most residents use the KFCC services, it chalked up 8.6 million won ($6,500) in profits last year to distribute 10 percent as dividends.

From the perspective of advanced economies, the amount might not be big. But things might be different in Uganda where more than 40 percent of its 44 million people live on less than $1.9 a day.

The KFCC first tapped into Uganda in late 2018 to start with some 30 members. The figure now stands at 8,600 _ it has become a representative grassroots financial institution, according to the KFCC.

“We are cooperating with a few countries. Among them, Uganda is the first place to go ahead with digital transformation,” KFCC Chairman Park Cha-hoon said.

“Beginning this August, our members in Uganda will be able to enjoy financial services through their mobile phones.”