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Sucoma Sacco surplus jumps 22 % in 2015

Sucoma Sacco posted a 22 percent jump in net surplus in 2015 compared to 2014.

Speaking during the organisation’s annual general meeting in Chikhwawa on Sunday, the Sacco’s outgoing chairperson Aida Khaiya said the surplus surged from K80 million to K98 million.

She described the year 2015 as tough as it was characterized by high inflation, high interest rates and a nose-diving kwacha.

“As a result the financial performance of companies was negatively affected including the parent company. In response to the economic challenges, companies undertook various business reengineering efforts to align their businesses with the prevailing market conditions and these affected even the sacco performance mainly due to increased nonperforming loans as a result of skipped payment,” said Khaiya.

She observed that despite the tough operating environment, the Sacco managed to grow its loan portfolio by 37 percent or K148 million.

“Total assets grew by K179 million, representing 32 percent growth. This was 13 percent below the 45 percent growth realized in 2014 and was generally attributed to the tough economic environment,” she said.

The Sacco has since agreed to share K49 million as dividends.

Looking ahead to 2016, Khaiya said the year remains unpredictable.

“The long term economic outlook though looks bright considering the infrastructural investments that the government is implementing at the moment. Most of these will have their results being realized in the next two years or more,” said Khaiya.

The Sacco has set itself a target of achieving an asset growth of 30 percent to hit K1 billion.

Guest of honour at the AGM, Assistant Human Resources Manager for Sucoma Zizipizgani Kaira hailed the sacco for promoting a savings culture in the Lower Shire.

He urged the Sacco members to borrow wisely and invest their money in avenues that could bring them more returns.

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