Ministry tips cooperatives on growth, productivity

Ministry of Trade and Industry Principal Secretary for Micro, Small and Medium Enterprises and Cooperatives Francis Enock Zhuwao says lack of effective leadership and limited skills are among factors hindering the growth of cooperatives.

He said this on Tuesday when he and officials from Community Savings and Investiment Promotion (Comsip) Cooperative Union Limited toured Chileka and Lunzu in Blantyre to appreciate how Comsip cooperatives were performing.

The visit was part of the ministry’s nationwide tour to build the capacity of cooperatives for value addition of agricultural products.

Zhuwao said though steady progress can be noticed among many cooperatives across the country, a number of them lack skills to grow and achieve large-scale production.

“There is need for additional training in leadership of most cooperatives in terms of financial accountability for them to conduct their transactions properly and transparently,” he said.

Zhuwao said cooperatives are a powerful tool for fighting poverty and spurring economic growth, according to the Malawi 2063 pillar of enhancing agriculture productivity and commercialisation.

Comsip capacity building officer Anne Nyirenda said most cooperatives stem from the Social Cash Transfer Programme, as such, they lack financial muscle to increase their capital for bigger businesses.

She urged community members to join cooperatives saying, unlike other village savings groups, they can access grants and loans through microfinance institutions.

Esther Willy, a member of Granny Marry cooperative from Mvundula Village, Traditional Authority Kunthembwe, hailed her cooperative for transforming her life.

She said she bought pigs and goats and was able to provide her children with school needs.

Currently there are 920 registered cooperatives in Malawi and 252 are under Comsip.