The African Confederation of Cooperative Savings and Credit Associations (Accosca) has rated savings and credit cooperatives (Saccos) in Malawi among the stable ones in Africa.
Accosca executive director George Ombado said last week in a presentation during the Southern Regional Bloc Forum in Blantyre.
He said other countries in this category are Ghana, Kenya, The Gambia, Seychelles and Tanzania.
Said Ombado: “Like in Malawi, you have Muscco [Malawi Union of Savings and Credit Cooperatives] that is stable. Muscco has influence, they hold meetings and they galvanise them.
“In some countries, they have weak Saccos or no nothing at all. Even when Sacco has a meeting, government is unable to attend.”
Minister of Trade and Industry Sosten Gwengwe attributed the success to tailor made regulations for cooperatives according to their capacity.
Reserve Bank of Malawi capital markets and microfinance supervision director Khumbo Mtalika said Malawi is one of the countries in the Southern African Development Community (Sadc) undertaking prudential supervision which helps the Saccos to comply with the regulations.
While Malawi has achieved the stable status, Muscco chief executive officer Fumbani Nyangulu said Saccos in the country are not growing in comparative terms.
“Not many people have harnessed this notion of savings. Not many have joined Saccos in the Southern Regional Bloc compared to the Western and Eastern regions,” he said.
Out of a population of about 20 million, about 300 000 are Sacco shareholders. However, Muscco is working towards increasing the number of Sacco members to one million by the year 2030.
