Savings and Credit Cooperatives (Saccos) in Malawi must provide full transaction and other services, World Council of Credit Union (Woccu) president and chief executive officer, Dr. Brian Branch has said.
Speaking while commending Mudi Sacco for partnering retailers and service providers on Wednesday in Blantyre, Branch said there is a need to expand the services being provided.
“With the provision of more services, Saccos can benefit retailers, members and the Sacco itself. Members can actually own houses and other property through Sacco membership. Of course, there is competition out there, but what is key is to provide better and more services,” said Branch.
Malawi Union of Savings and Credit Cooperatives (Muscco) financial services and business development head Fumbani Nyangulu said one of the biggest setbacks in the growth and liquidity of credit unions in the country is poor remittances by members, especially government departments.
“Current government departments owe credit unions up to K230 million [about $575 000]. We have, however, engaged the Reserve Bank of Malawi governor and the Vice-President and they have promised to push for the payment of the remittances,” said Nyangulu.
Mudi Sacco general manager Triza Tsiga Magreta said they are on a crusade to woe more members by end of this year.
“We have a strategic plan which includes an outreach and inclusion programme. The strategic plan includes system growth and diversification through a campaign to increase our membership and capital base. We are also sensitising members on deposit programme and reward the highest savers at the end of the year. We are also planning to be computerised by August this year and currently, we are only remaining with the purchase of the software,” said Magreta
She said Mudi Sacco is also building and maintaining its image by, among others, improving its working environment.
Branch was on the tour of the country’s credit unions. Among others, he attended a symposium in Lilongwe and visited Mudi Sacco.
Mudi is an employee-based credit union which started in 1990 as a Malawi Bureau of Standard Sacco with few employees. Currently, Mudi has more than 50 companies. The Sacco has branches in Blantyre, Lilongwe, Zomba and Chikhwawa.