Malawi Union of Savings and Credit Cooperatives (Muscco) has said the liquidated Dowa-based Tipindule Community Savings and Credit Cooperative (Sacco) was a relatively small farmers’ group whose limited membership constrained its ability to mobilise savings.
Muscco chief executive officer Fumbani Nyangulu said this on Monday in reaction to the Registrar of Financial Institution’s revocation of the Sacco’s licence for being financially unsound and failing to meet statutory capital and liquidity requirement.
“It is important to note that this was a voluntary liquidation. It was a relatively small cooperative comprised of farmers,” he said.
Nyangulu said small membership bases limit the pool of savings available for lending, making it difficult for Saccos to grow and remain financially sound.
He said: “What we are recommending is that cooperatives should mobilise to bring in more members and grow their resource pool.
“In the event that they cannot independently grow their membership, we would also encourage mergers to improve sustainability.”
The registrar last week placed the cooperative under compulsory liquidation, giving members and creditors 60 days to submit claims, to be settled according to statutory priority and subject to assets realized during the process.
Centre for Social Concern economic governance officer Agnes Nyirongo said the impact of the closure extends beyond regulatory compliance as Saccos often provide the only accessible source of savings and affordable credit for low‑income households.
