E1.8BN SAVED WITH COOPERATIVES – MDLALOSE

MATSAPHA – Creation of wealth comes in different forms, savings and credit cooperation is one option.

Figures show that many people in the country have joined cooperatives in a bid to save.
This was proved by statistics released by the Swaziland Association of Savings and Credit Cooperatives (SASCCO).
According to the 2017/18 financial statements, approximately 61 000 members saved about E1.8 billion.

significant

SASCCO President Cambridge Mdlalose explained that this was a significant growth because in 2015, the members saved E980 million (actual E980 615 537).
However, the membership stood at 43 000 during that financial period.
“We believe that the way we approach our business makes us to be attractive to those who are not yet members.”

Adding, Mdlalose said the growth meant that people were no longer afraid to save with cooperatives as they had observed that their monies were in safe hands.  Mdlalose mentioned that the Savings and Credid Cooperatives (SACCO) movement was dominated by females as there were about 25 000 in 2016 compared to the 21 000 males.
In the current financial year, out of the 61 000 members, 33 000 are females. Speaking during a press briefing on the next SACCO Indaba, held at Hlalawati SACCO Boardroom, yesterday, Mdlalose said shares almost tripled from E34 million in 2015 to E102 million in 2017.

performing

“This growth is very significant. This tells you that we are performing well. And it tallies with the growth of the membership.”
On the loan portfolio, Mdlalose said in 2015, approximately E781 million was loaned out.
The figured doubled to E2 billion within two years.

“Looking at the figures of loans against our mandate of saving, we should not be loaning out such huge amounts. However, it must be noted that a cooperative that does not loan out the savings, does not grow.”
It was for this reason that the issue of liquidity would be discussed during the indaba to be held from Tuesday to Wednesday at Esibayeni Lodge in Matsapha.
Mdlalose said cooperatives should come up with strategies on how they could stay afloat in order for members to have access to funds at all times.

The president pointed out that the movement was on the right track regarding loans recovery.
“On delinquency, in 2015, it stood at E20 million. This is money loaned to members – and they are failing to repay it.

Now when looking at 2017, we are standing at E14 million, which is a drop of E6 million. This means that we are improving in collecting or recovering the debts from the members.”  
He noted that retrenchments were one factor, which also contributed to delinquency.

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