The United Civil Servants Savings and Credit Cooperative (UCSS) has officially merged with Tikwere Sacco bringing the total assets to K1 billion and the loan portfolio to K550 million.
As of May 2016, Tikwere Sacco ceased operations and its three braches started operating under UCSS following a directive from the Reserve Bank of Malawi (RBM).
The merged Sacco now has a membership base of 10, 000 teachers in nine branches in Mzimba, Mzuzu, Nkhata Bay, Ekwendeni, Kasungu, Nkhotakota, Karonga, Chitipa and Chirumba.
Speaking in Karonga on Thursday, UCSS president, Fletcher Mhango, said the leadership of Tikwere Sacco approached UCSS for takeover following RBM’s snub to grant them a licence due to underperformance.
Mhango said last year UCSS managed a surplus of a K 92 million apart from declaring a K 40 million dividend.
Asked on whether UCSS will sustain the gains with such a huge membership base that is spread between the Northern and the Central regions, Mhango said mobilisation of enough resources remains key to the future of the sacco.
“A good institutional capital remains key to the future of the sacco so that members can borrow at slightly competitive rates but lower than that of banks. I am sure with a membership base like we have at the moment and probably with additional membership we should be able to mobilise more resources,” said Mhango.
Muscco Chief Executive Officer, Sylvester Kadzola, hailed the membership base of the merged sacco.
He said Muscco is at the moment emphasising on good membership base for old and newly formed saccos.
“With a good membership base, it becomes easy to provide services that can make a difference on the members.
Kadzola disclosed that some saccos are currently struggling because of their share sizes and cannot give out meaningful loans to their members.
“These days, members are interested to borrow money to build houses, buy cars or even open up farms. You cannot do that with a small loan – you need millions and for a sacco to meet such loans, they need a membership base such as that of UCSS,” said Kadzola.
Following a decision by RBM to deny licences for three saccos in the northern region, the number of saccos in the region has shrunk to four.
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