A diversification programme that Malawi Union of Savings and Credit Cooperatives (Muscco) is implementing has eroded profits for the year 2015 but the group is optimistic that the performance of the saccos will improve once the investments start giving returns.
Muscco’s new president, Fletcher Mhango, said the group diverted most of its resources to investment projects that were developed in the year.
Mhango was speaking during Muscco’s 35th Annual General Meeting held in Lilongwe on Friday. The meeting was held under the theme Building Beyond Challenges.
“We have partnered with CIC Insurance from Kenya and also allocated more of our resources to our forex business. These investments made our performance slightly lower because we have not yet started reaping from the investments,” he explained.
He is however optimistic that things will improve once the investments start giving returns.
“I’m sure that when these investments start bearing fruits and we hit breakeven point, then the profits will start to pick,” he said.
Muscco outgoing president, Dennis Kalekeni, commended the group for passing a resolution to establish a stabilisation fund which will help to revive savings and credit cooperatives that are hit with financial challenges.
“This is the issue that has taken so long to be passed. This fund is set aside to bail out any ailing saccos which are failing to operate due to lack of resources and such funds shall be put into full use,” he said.
During the meeting, members also elected new board members. Leonard Chakwawa was elected the vice president of the board, Henry Chowawa as secretary while Muleso Wakwana treasurer. Mabvuto Chioza was elected board member.
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