Fincoop, one of the country’s savings and credit cooperatives (Saccos), has registered a K20.1 million surplus as at December 2019 compared to K16.9 million registered in the prior year.
Fincoop Sacco president Francis Mlanga said on Saturday during the annual general meeting in Lilongwe that the Sacco is now pulling itself up after registering losses in previous years.
He attributed the losses to non-performing loans issued to agriculture-based members who lost everything due to poor weather, resulting in capital losses.
Said Mlanga: “The surplus was achieved because members have been investing more in their savings. They understand with evidence how the Sacco has improved their lives.
“The challenge, however, has been low remittance of funds, especially from the salaried members, a development which affected loan disbursement.”
Malawi Union of Savings and Credit Cooperative Unions innovations and resource mobilisation manager Daniel Imfa advised members to save regularly and borrow wisely.
He said for a Sacco to raise capital, it needs regular savings and members borrowing responsibly.
Imfa said the future for Saccos looks bright because currently total combined assets for the Sacco movement hover around K28 billion.
“The challenges have been that we have not marketed much to the rural areas. Access remains a challenge because of the lack of mobility and resources,” he said.
In the period under review, the Sacco’s membership climbed to 12 209 as at December 2019 from 8 475 during the prior period.
Net loan portfolio increased from K247 million to K272 million while total equity improved from minus K229 million to minus K155 million and share value increased from six percent to 37 percent.