Reserve Bank of Malawi (RBM) and World Bank have embarked on a project to put all the country’s Savings and Credit Cooperatives (Saccos) under one portal to bring flexibility in the cooperatives’ transactions.
RBM spokesperson Mbane Ngwira confirmed about the project on Tuesday, but asked for more time to provide details on the matter.
But Fodya Sacco president Christopher Numero said the development will help Sacco members enjoy more benefits, including transacting on automated teller machines (ATMs).
Fodya Sacco is touted as the largest cooperative comprising tobacco farmers in the country.
“As Saccos, our main threat is mobile money service providers but with the Reserve Bank of Malawi and World Bank embarking on a project that will bring all Sacco’s under one portal, then we must be excited.
“This project, which started in August and will take one year to be completed, is expected to bring flexibility in our transactions,” he said.
Malawi Union of Savings and Credit Cooperatives (Muscco) Chapter Two treasurer Henry Chowawa said Saccos are suffering because of the increase in the number of unregulated banks known as banki mkhonde which have flexible rules and regulations.
“With the Reserve Bank of Malawi closely monitoring Saccos and putting on conditions, running Saccos has been expensive to the extent that some have folded.
“There were supposed to be 26 Sacco’s but now only 18 are in existence because some Sacco’s failed to meet the RBM regulations and they just merged,” he said. n