United Civil Servants Savings and Credit Corporative (Sacco) has declared a K400 million dividend to be shared among its members after it posted a surplus of K1 billion in 2020.
The profit is nearly double when compared to the K547 million it posted in 2019.
During a recent Annual General Meeting in Mzuzu, United Civil Servants Sacco Chairperson Amon Zaliro Moyo attributed the development to growth of its members which reached 35,494 in 2020.
He said the membership base has grown from 23,847 and projected to grow to 40,000 by the end of 2021.
“We are growing from strength to strength. In terms of performance we are also doing well. I should be proud to say that this time around we have made history by being the first Sacco to post a K1 billion profit which is not easy. We are coming from different challenges because this time around we have Covid-19 and we were not able to mobilise more members,” Moyo said.
Chief Executive Officer of Malawi Union of Savings and Cooperatives (Musco) Fumbani Nyangulu said Saccos need to be strategic amid the pandemic.
“They have reported a very good surplus and members are getting good dividends. The main advice that we are giving them is to continue implementing risk management programs especially this time when we are facing this pandemic. We want to start looking at scenario planning and also look at what if this pandemic continues,” Nyangulu said.
Nyangulu said with the pandemic withdraw of membership and loan default rate has surged in most Saccos in the country.
However, Civil Servants Sacco which is the biggest in both assets and membership in the country said loan default rate has reduced from five percent to one percent as of December 31, 2020.
One of the delegates Elizabeth Coin from Mangochi a nurse by profession hailed the Sacco for the increase in the dividends saying they will go a long way in uplifting their lives.
United Civil Servants Sacco has an asset base of K6.1 billion from K4.5 billion in 2019.