Financial co-op members pose in a meeting to organize their central organization, dubbed the UFCC, this month in Uganda. Photo courtesy of KFCC

Uganda strives to follow suit of South Korea

The Korean Federation of Community Credit Cooperatives (KFCC) announced on Aug. 30 that the outfit had decided to set up a central organization in Uganda.

Toward that end, the KFCC held a meeting last week and came up with detailed plans to found the Uganda Federation of MG Community Credit Cooperatives (UFCC).

The UFCC strives to support the management of its branches, education of its members, and integrated info-tech systems, as well as offering governance consulting.

In addition, the prospective entity is set to build a fund to financially back grassroots co-op members and provide opportunities for monetary investment.

Chairman Samuel Mavumirizi was elected to take its inaugural leadership for the next four years.

He gained a majority vote thanks to his contribution to the establishment of the UFCC over the past few years.

The KFCC tapped into Uganda in October 2018 to start with merely 30 members. Thereafter, the customer base has ballooned to reach up to 9,000 by now.

In recognition of the success, the Ugandan government has provided the status of perpetual legal entities to its branches.

“All the systems are now in place to further expand the UFCC. We hope that our model will create win-win solutions across the globe,” KFCC Chairman Park Cha-hoon said.

In South Korea, the KFCC is the primary apex organization for Korea’s cooperative banking sector.

Representing up to 1,300 financial cooperatives across the nation, the Seoul-based outfit boasts a customer base of more than 20 million. Its asset recently topped 250 trillion won ($200 billion).

On top of Uganda, the KFCC has made a foray into other countries, including Fiji, Laos, and Myanmar.