Poor policies on Savings and Credit Cooperatives (Saccos) are affecting operations and growth of some cooperatives in the country.
Malawi Union of Savings and Credit Co-operations (Muscco) Chapter 1 Alternate Director, Stanley Mpaya said this on Saturday during the International Sacco Day commemorations in Chikwawa district.
Mpaya said in other countries, governments have put in place deliberate policies to support growth of Saccos which he described as key in attaining the financial inclusion goal.
“Go to Kenya there is a deliberate policy that even at the highest level of power people are Sacco members. Every minibus you see in Kenya is owned by Sacco members. Most of the big buildings you see there are owned by Saccos. Perhaps it is high time the government came up with enabling policies for Saccos flourish,” he said.
Mpaya said high default rate is another challenge facing Saccos in the country.
“This is common especially with community Saccos whose members are not salaried,” he said.
During the commemorations Mussco handed over two classrooms it has constructed and 60 desks to Saint Matthews Primary School.
Mussco also donated 30 desks to Sekeni Promary School as part of its corporate social responsibility.
Muscco Business Development Manager, Ezekiel Thindwa hailed the said the commemorations help in raising awareness on savings cooperatives.
“We see that Saccos thrive on ownership. When you are a member you are a part the ownership and I am encouraging people who are not members yet to join,” he said.
Willy Nkhoma from Succoma Sacco who was Guest of Honour described Saccos as key in economic development.