Pride Bank has launched a groundbreaking new product designed to empower millions of Ugandans who participate in collective savings groups, such as SACCOs (Savings and Credit Co-operatives), VSLAs (Village Savings and Loan Associations), and investment clubs.
This initiative, launched today in Mbarara City, is a strategic response to the challenges of limited access to affordable credit, inadequate financial literacy, and a lack of structured support that have historically hindered the growth of these community-led financial movements.
By addressing these barriers, Pride Bank is not just introducing a banking product; it’s providing a powerful tool for inclusive economic growth.
The Power of Collective Savings
According to Joseph Fetaa, the Head of Business at Pride Bank, SACCOs are the “backbone of community financing in Uganda,” with over 10,000 registered groups mobilising billions in savings and reaching more people than commercial banks.
Feeta noted that with over 8,000 active clubs, investment clubs are rapidly growing, pooling resources for ventures in agribusiness, real estate, and entrepreneurship.
This, according to Fetaa, highlights the undeniable power of collective savings in driving financial inclusion and national progress.
However, he observed that these groups often struggle to access formal financial services that can help them scale their ambitions, reason why Pride Bank decided to step in.
He revealed that Pride Bank’s new SACCO and Investment Club Product is built on three core pillars to address these gaps:
Savings
It provides a safe, rewarding, and disciplined platform for group savings with competitive interest rates, encouraging consistent saving habits.
Credit
The product offers loans of up to 150% of the group’s savings, effectively lowering the barrier of traditional collateral and enabling groups to finance bigger projects and dreams.
Business Development Support
This pillar goes beyond basic banking by offering essential financial literacy training, mentorship, and exposure to successful entrepreneurs. This support is crucial for building the skills and knowledge needed to turn collective savings into profitable enterprises.
Transformative Journey Rooted in Community
The launch of the product in Mbarara is a symbolic homecoming for Pride Bank, which began its journey in the city in 1995.
This strategic location underscores the bank’s commitment to its grassroots origins and its mission to transform lives responsibly.
As Privato Ruhangaabaho, the Regional Manager for Western Uganda, noted, the bank’s evolution, from Pride Africa to Pride Microfinance and now to Pride Bank Limited, has always been centred on this purpose.
By helping groups save with purpose, access affordable credit, and receive crucial business development support, the product aims to build resilience and foster growth from the ground up.
It recognises that while individuals can achieve much, a community, when empowered, can achieve far more.
The initiative thus calls on the people of Mbarara and beyond to “form their clubs, register their SACCOs, and build a stronger Uganda together,” signalling a commitment to a partnership that empowers communities and drives national progress.
This is not just a banking service; it is a catalyst for a new chapter of inclusive growth for Uganda.