Fincoop Sacco recapitalisation drive on course

Fincoop Savings and Credit Cooperative (Sacco) has said recapitalisation, which is key to the recovery of the financial institution, is on course.

The financial cooperative, which was recently hit by bad debts, among other business shocks, has also assured its members that it continues to work closely with its foreign and domestic partners to map out a recovery plan.

Fincoop acting general manager Mcmillan Nankhonya said yesterday that currently, the institution’s recovery efforts are “showing some progress” since June last year.

“As management, we are working hard to make sure the Sacco recovers, but as members who are shareholders, they must take a bold step to recapitalise and see the Sacco on its feet again,” he said.

Reflecting on its past, Nankhonya said their Sacco model was to attract prospective members with lending facilities and encouraged the members to save.

He said since the institution was created in 2014, it attracted more membership, especially from the tobacco-growing districts.

“The tobacco market did not help to realise Fincoop’s dreams of collecting money lent to farmers. This was because the leaf price was poor and, at times, the quality of tobacco was not good and consequently left Fincoop borrowers with less money than planned,” said Nankhonya.

Fincoop Sacco is a member-owned, democratically-controlled financial cooperative society, serving micro, small and medium entrepreneurs and salaried employees throughout Malawi.

In 2011, Fincoop, which provides financial services to low and medium income earning people, was placed under statutory management by the Registrar of Cooperatives due to its poor financial performance as a result of non-performing agriculture loans.

Nankhonya said over the past two to three years, Fincoop efforts have been on loan loss recovery to achieve stability.