Shares refer to the equity capital one employs in a Sacco. It gives you the right to share ownership of a Sacco. That is to say, you become a shareholder. Share capital is different from your usual deposits. in the sense that deposits can be used in conducting the usual transactions while a share capital account is only meant for generating dividends and acts as collateral against loans.
But why would someone prefer buying shares in a Sacco rather than any other company?
Because of the many benefits which are attached to being a co-owner of a Sacco.
Being a shareholder in a Sacco attracts the following benefits:
1. MEMBER AND OWNER
Unlike other financial institutions like banks where you just become a customer, but have no sense of ownership, Saccos are different. In Saccos, your share capital gives you the right to be a member and an owner. You get to the center of what is happening within the Sacco.
Your shares give you the right to know and follow up on how the management conducts the Saccos activities. You act as the boss and nothing can be done behind your back. It promotes transparency.
2. EQUAL RIGHTS AND VOICE
In a Sacco, every member has equal rights. You contribute equally to the economic affairs of the Sacco. It is because of your shares that you contribute collectively to run the long-term objective for which Sacco exists.
There are also occasional educational programs to enlighten members on how Sacco runs and its funds are managed. In other words, there is economic empowerment of members through educative forums.
3. HIGH DIVIDENDS RATES
Dividends are the accumulated bonuses that you enjoy against your share capital. You receive the bonuses at the end of every financial year depending on the performance of the Sacco. They are proceeds of benefits accrued by the Sacco out of interest.
Many companies award dividends to their members, but the ones from Sacco come with higher rates. You earn dividends depending on the number of your shares and accumulated deposits. The rates are impressive. Some Saccos have high rates of up to 20%, which translates to a lot of money depending on your shares.
4. VARIETY OF SHARES
Certain Saccos carry out different development projects to which their members can commit their money in form of shares. Investments such as real estate, government securities, or any other project approved by the members.
Investment projects attract profits that are shared among Sacco members depending on the share of capital invested per individual. The higher the share capital, the more dividends you get.
5. HIGHER INTERESTS RATES
As you have read, Saccos’ dividends attract higher interest rates. It motivates the majority of investors to buy shares from Sacco. Unlike bank savings, shares yield good returns yearly which go directly into the pocket of members. It is the best way to keep your money compared to fixed deposits with banks.
The high interests promote the economic life of members as they can channel them to different personal investment plans. With time, you may find your financial freedom.
If you want a place where you can develop yourself pretty fast then buy shares in a Sacco. Apart from the high-interest rates on dividends, you will enjoy additional benefits, like pooling resources together, financial education, and investment opportunities. You will rarely lose track with a Sacco.
As such all members of Rotarian Uganda Sacco are also shareholders and must at least have 4 shares at UGX25,000 each, totaling UGX100,000. This is a mandatory requirement for Sacco membership.
The UGX100,000 is the core portion of a member's equity in the Sacco. It is Non-Refundable (Can only be transferred to an existing member).
Shares can be bought at any time or transferred to another member. Members can borrow up to 3 times their total share capital.
Getting started is easy! Simply open an account with us for as little as 100,000 for 4 shares each at 25,000.
- Earn dividends per annum on your shares after being declared by the Annual General Meeting.
- Every member receives a Share certificate.
- Members can use their shares as Loan Collateral
HOW WE OPERATE
We are continually listening to our members on the products they would like Sacco to invest in. This has informed the development of our 10-year investment strategic plan. The Investment Committee works diligently to identify viable and well-researched investment products and recommends them to the Management committee.
The Management Committee then weighs them and makes the decision to invest or not.
- ALL Sacco investments are owned collectively by ALL Sacco members.
- The profit is shared in form of annual dividends based on the number of capital shares owned by each member.
- The 100,000 is the core portion of a member`s equity in the Sacco. It is Non-Refundable (Can only be transferred to an existing member).