Dwangwa Sugar Company Savings and Credit Cooperative (Dwasco Sacco) has posted K83 million after-tax surplus in the year-ended December 2019, a 9.2 percent increase from the previous year’s K76 million.
In an interview on the sidelines of the Sacco’s annual general meeting in Dwangwa, Nkhotakota on Saturday, outgoing president Justin Dzinkambani attributed the jump in surplus to members’ commitment to pay back loans.
He said the Sacco, which has 5 000 members, showed resilience amid the challenging business operating environment characterised by high lending rates and political impasse.
“Our enhanced business strategy and good customer relations supported by entry into new markets helped our deposits growth and built customer confidence,” said Dzinkambani.
He said the gains registered in 2019 surpassed targets in terms of membership, deposits and transactions.
“We want to ride on this gain and do much better in 2020. We have also opened to other members unlike in the past where we only served people in the sugar estate,” said Dzinkambani.
He said due to improved performance, the Sacco has opened additional branches in Salima and Nkhata Bay to enhance business growth.
On his part, Malawi Union of Savings and Credit Cooperatives president Francis Mlanga said the growth demonstrates that Saccos can play a crucial role in growing the individual and the national economy.
He said: “I am encouraging all Sacco members to pay back the loan in time once they get it. This will help us get another loan without problems and even help others who want to access loans.
“We know that we are in the period of the coronavirus pandemic, but let us manage the little income we have for our own benefit.”
Mlanga urged members not to quit Dwasco Sacco despite the hardships brought about by the Covid-19 pandemic, saying it was the backbone of their financial help.