Mudi Sacco Limited on Saturday reported a K46.6 million surplus for the year ended December 31 2018, which is a 28 percent increase from the previous year’s K34.5 million.
Speaking during the Sacco’s 28th Annual General Meeting (AGM) in Blantyre, board chairperson Stanley Mpaya said despite a challenging economic environment, Mudi Sacco achieved a surplus.
“One of the challenges we faced included members not communicating when they change jobs, leading to delinquency,” he said.
An audit report presented by Peter Kamange of KCC Finance Associates showed that delinquency reduced to three percent in the year under review from five percent in 2017.
Guest of honour at the AGM, Malawi Union of Savings and Credit Cooperatives (Muscco) board secretary Masauko Khembo agreed with Mpaya that delinquency has a negative impact on savings and credit cooperatives (Saccos) performance.
“Let us remember to repay our loans. Dividends are derived from the interest on the loans. Delinquency kills Saccos,” he said.
This year, Mudi Sacco members will share K23.3 million as dividend in line with Sacco regulations, which means the other half will be ploughed back into the business.
During the AGM, members confirmed Charles Msusa of Blantyre Water Board (BWB), who was co-opted in the board as a board member while Mphatso Pheleni-Msyali of Nation Publications Limited (NPL) went in unopposed as a board member.
Mpaya retained his seat and will be deputised by Matilda Mtambo of Blantyre Agricultural Development Division.
Mudi Sacco is the second largest Sacco by membership and the third largest by assets in Chapter One that covers the Southern Region.
Nationwide, it is among the top 10 Saccos nationwide by both assets and membership.