PTC, Sunbird Saccos post surpluses

Two savings and credit cooperatives (Saccos) over the weekend reported surpluses amid the prevailing tough economic environment. The Malawi Union of Savings and Credit Cooperatives (Muscco) officials said this signals financial prudence.

PTC group Sacco on Saturday at its 18th annual general meeting (AGM) in Blantyre reported a surplus (profit) of K6.1 million, down from K6.2 million the year before, among others, affected by failure to recover loans from dismissed employees and fraud.

The PTC group board declared a dividend of K4.3 million.

On the same day, Sunbird Tourism Sacco also reported a reduced surplus of K9.1 million  from K14.4 million affected by the “difficult macro economic climate” and retrenchments at Sunbird Tourism Limited.

The board declared a dividend of K5.4 million down from K7 million the year before and the members agreed to share the dividend.

Outgoing chairperson of PTC group Sacco Jallon Mweya said the group’s membership went up to 1 635 from 1 606 which he described as not enough compared to the potential that it has.

“Our search for membership within the group has been planned for this year. We hope to approach one or more companies in the Press Group.

“The board has plans to train the general membership on Sacco policies with the view of increasing awareness of Sacco policies and guidance so that the gap is reduced,” Mweya told the AGM.

He said the members’ deposits went up by 44 percent to K1 million from K700 000 the year before but the deposit growth was not encouraging.

On his part, Sunbird Sacco outgoing chairperson Elvis Bauleni said the group’s total incomes rose by 18 percent to K34.8 million from K29.4 million the previous year .

“Our business was adversely affected by the difficult macro-economic climate characterised by severe foreign currency shortage and erratic fuel supply as well as rising prices for most goods. This left our members with little disposable income,” he reported.

He said due to retrenchments, the Sacco lost 113 members with K12.8 million in shares withdrawn.

Bauleni said in total, the Sacco lost K13.2 million in shares and savings.

Muscco’s head of financial services and business development Fumbani Nyangulu said generally, most of the Saccos are performing well due to financial discipline employed by these groups.

“Our role is to ensure that Saccos are operating effectively and efficiently. It’s good to note that most of the Saccos are reporting surpluses,” said Nyangulu at Sunbird Sacco AGM.