Cooperative Associations changing lives

Having spent about three years without a job, Alex Nzabamwita could not even afford to become a member of any cooperative association despite his willingness. However, he was so committed that he would attend meetings of a cooperative association for taxi moto operators in Kagarama, Kicukiro.Last year, Evangelical Restoration Church came up with a support project to enable cooperatives start income generating activities, as part of a three years Global Fund support fund.Among the 12 cooperatives that were supported was Simeon Cooperative, something that saw the cooperative get a loan worth ten motorcycles and based on Nzabamwita `s commitment, members decided he should be given one.“I immediately started working since I had the permit and I have been paying the cooperative very well to the extent that I have so far serviced half of my loan,” says Nzabamwita, a resident of Gatenga Sector in Kicukiro district.His life has positively changed and he attributes this to his cooperative members who have been supportive and encouraged him to save.“If business is at its best, I am able to save between Rwf 80,000 and 100,000 after paying rent and shopping foodstuff that at least takes me for a month as well as servicing my loan,” says Nzabamwita. Flavier Semadwinga Mwanga, the Manager of the support project at Evangelical Restoration church, commends beneficiaries of the first phase for their commitment to be productive adding that more will benefit.“We supported 21 cooperatives and reports from our follow-up team indicate that they are doing very well. This has prompted us to support more cooperatives this year,” he says.Mwanga adds that they have already identified beneficiaries of the next phase that will see 240 families benefit.He notes that training cooperative members in financial management is one of the measures being taken to ensure that members benefit from their activities. Just like Nzabamwita, more people have benefited from joining cooperatives and among other initiatives, steps cooperatives take in getting access to finance especially financial institutions have been simplified.Manzi Nemeye the in charge of business at Unguka Bank tells The Sunday Times that similar support is being given.As part of the bank`s support to cooperatives, 21 motorcycles were recently given to ‘Intambwe’ cooperative of taxi-motor operators in Huye district in the Southern Province on a loan scheme.Nemeye says that in line with the support project, over 500 motorcycles have been given out in different districts.“For any cooperative to get loans in our bank, we do not ask for security. It only requires them to prove their legal status from Rwanda Cooperative Agency (RCA) as well as verifying their capacity to pay based on their activities,” Nemeye says. Gilbert Habyarimana, RCA`s Deputy Director General, says that possible measures have been put in place in supporting cooperatives to achieve their objects.“We have been closely following various cooperative activities not only in terms of capacity building to operate, but also checking on transparency in terms of financial reporting to avoid embezzlement of member`s funds,” Habyarimana notes.He explains that many cases of lack of financial accountability have been reported leading to RCA coming up with audits in suspected cooperative association.“Currently, each cooperative must make a financial report of which a copy is given to us to examine and prove their state. And by this, we want to make sure that they operate the expected way,” says Habyarimana.Recently, RCA initiated a move to crackdown ghost cooperatives and according to him, the move will continue until cooperatives comply with the legal requirements. He also calls on cooperative members to be vigilant and own these cooperatives to avoid their leaders misusing or misleading something he said might lead to their closure.“The main reason for having these cooperatives is to help members fight poverty and to make this a success, cooperatives must have work plans.” Some cooperatives have also been supported not only in terms of capacity building, but linking them to the use of ICT. This has seen RCA donating computers and other tools aimed at facilitating cooperatives in financial reporting.