Minister of Trade and Industry Sosten Gwengwe has expressed worry over low participation in Savings and Credit Cooperatives (Sacco).
Gwengwe made the remarks after visiting United Civil Servants Sacco (UCS Sacco) headquarters in Mzuzu where he appreciated products offered by the cooperative.
He said the cooperative’s membership has grown by 30 percent from 63,000 last year to 82,000, which is in line with Malawi’s ambition to have one million Sacco members by 2030.
“Government’s primary objective is wealth creating through Malawi 2063 and we believe that contributing Saccos should be recognised,” Gwengwe said
UCS Sacco Chief Executive Officer Francis Waliwa said the focus was to transform the socio-economic lives of
Malawians who are able to create wealth.
Waliwa said the Sacco’s asset base has grown to about K48 billion from K28 billion last year.
“We made a profit of about K12 billion last year from about K7 billion in 2023 and this means we are growing. If we grow and other Saccos also grow, then it is possible to establish a cooperative bank and help to grow the country’s economy,” Waliwa said.
UCS Sacco hosted the minister and leaders from other Saccos to discuss possible ways of boosting their sector.
Malawi Union of Savings and Credit Cooperatives Chief Executive Officer Fumbani Nyangulu said Malawians should embrace a saving culture if they are to grow economically.
“Saccos can help to enhance financial inclusion. Sometimes it is difficult to access finances to invest in serious business and Saccos are there to assist. That is why we encourage people to join Saccos,” Nyangulu said.
The Ministry of Trade has set a goal to increase Sacco members in local companies to 20 percent by 2030.
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