Zomba Teachers’ Savings and Credit Cooperative (Sacco) has finally merged with their counterparts from Thyolo effective October 1 this year.
The signing of the memorandum of understanding (MoU) of the merger was held last week in Zomba and the new cooperative will be called Thyolo Teacher’s Sacco until a neutral name is identified.
The signing of the MoU also means that the board of directors of Zomba Teachers Sacco has stopped to exist and all members have been incorporated into the new Sacco.
Former president of Zomba Teachers’ Sacco, Elias Kachepa, said they had to merge with their counterparts following poor performance.
“Since I assumed office two years ago, the cooperative has not paid a dividend. This made us fail to obtain an operating licence from Reserve Bank of Malawi [RBM], which is mandated to regulate Saccos in the country.
This also meant that other financial lending institutions could not give us loans and it was difficult to run the Sacco,” he said.
In his remarks, Thyolo Teacher’s Sacco president Amos Munkhonya said they had to rescue their colleagues having transacted business together at one point.
“The business of today is about sustainability. We have merged with Zomba because ours is a performing sacco and we will manage well. We will consolidate all the liabilities and work as one family,” he said.