PolyMed Savings and Credit Cooperative (Sacco) has posted a K40 million surplus in the year ended December 31 2018, a 41 percent drop from the previous year’s K68.7 million.
Speaking during the 22nd Annual General Meeting in Blantyre on Tuesday, the Sacco’s chairperson Albu Mkomadzinja attributed the drop to a harsh business environment characterised by reduced interest rates, a weak economy and retrenchments.
“Retirement of our long-serving members has also affected Sacco’s performance. We opened 2018 with 2 894 members and during the year, 241 new members joined and 239 members withdrew their membership,” he said.
Malawi Union of Savings and Credit Cooperatives (Muscco) business development manager Ezekiel Thindwa said in 2018, many Saccos performed well despite others not performing to the expected standards.
“Overall, membership is growing and profits are good. For struggling Saccos, it is due to lack of membership growth and non-performing loans,” he said.
On his part, Polymed Sacco general manager Mary Masona said though members took loans, the interests were low.
“The Reserve Bank of Malawi’s lowering of interest rates affected Saccos in terms of profits made,” she said.
Steven Sadya, a member of the Sacco who works at the College of Medicine, said through PolyMed Sacco, which he joined in 1997, he bought land and built two houses.
He said he is satisfied with the loans he gets from the Sacco.