The Malawi Union of Savings and Credit Cooperatives (Muscco) wants to become self sustaining by weaning itself off donor dependence by, among other things, re-capitalising itself using shareholder funds.
Meanwhile, Muscco’s Annual General Meeting held in Lilongwe last week saw Lilongwe urban’s Umodzi Sacco chairperson Denis Kalekeni being re-elected at as president of Muscco while Sucoma Sacco was awarded as the best performing cooperative.
Musco chief executive officer, Silvestor Kadzola said in an interview in Lilongwe that during the AGM, it was also agreed that the union should be recapitalized using dividends that were meant for member cooperatives.
“We have relied on traditional donors who substantially support our activities,” said Kadzola.
He said although Muscco’s balance sheet was now at K1.2 billion from just under K1 billion last year, its capitalisation is just at K279 million and that the target is to increase it to K500 million by 2017.
He said, however, that most of the Saccos, who are now being regulated by the Reserve Bank of Malawi, are becoming profitable and that this should help in making the Saccos and Muscco self sustaining.
Kadzola said Muscco is also working at wooing more members to ensure growth of the Saccos whose current collective membership stands at 100,000.
The number of Saccos is also expected to increase to 51 from the current 49 as two new cooperatives are expected to be certified by Muscco this year, according to Kadzola.
However, Kadzola said most of the Saccos are still grappling with delayed remittances of deductions of members’ loan repayments and monthly fees, especially from public institutions.
“Although some public institutions have started fulfilling their obligations, the issue of delayed remittances of deductions is still affecting the Saccos and this disrupts their cash flow and profitability,” he said.