• December 2, 2022 5:38 pm

Mzinda sacco President warns against borrowing for consumption

May 31, 2022

By Judgment Katika – Contributor

Mzinda Savings and Credit Cooperative (Sacco) President Mphatso Nkuonera, has warned membership not to borrow for consumption amid economic challenges the world is going through.

He made this appeal as the Sacco is set for its 25th Mzinda Savings Annual General Meeting (AGM) slated for 4 June 2022 in Lilongwe.

“Our goal is to empower our members economically, we don’t want them to have no hope of growth in life. The sacco has transformed many lives in that regard,” he said.

The sacco president added that this year’s AGM is very important as it will be held at a time when serious economic decisions ought to be made following the global economic waves caused by various issues.

He said it’s a double event as the sacco celebrates 25 years of service despite going through thick and thin over the years.

“The AGM is key towards deciding our direction in the operations of the institution, especially at the time when the Central Bank has put upward adjustments on interest rates in banking transactions, that has not spared our sacco, so we will need to agree way forward.

“Added to that, following the local currency devaluation, as a sacco we are also supposed to take very serious decisions that should be made by the general membership,” he explained.

He added that, the cooperative’s membership has all reasons to smile as it has impacted positively on many souls.

“For the pas twenty five years, members have saved and borrowed money for various personal development projects like buying bycycles, motorcycle, motor vehicles, erecting houses, educating their wardens and growing their financial muscles

Delayed remittances from member organizations, which leads to low liquidity, this is not rated well with our members.

Nkuonera, said the institution has survived for the past 25 years despite challenges

“Retrenchment some member organizations due to covid 19 or other internal factors lay off some staff, this impacts us negatively, the members have loans which it becomes hard to settle, and that eventually reduces our asset base in one way or the other,” he explained.

He said this year’s AGM will be held at Bridgeview Hotel, at the heart of Lilongwe City.

Mzinda Sacco was formed in 1996, with a core objective of encouraging a saving and lending culture among it’s members,which eventually has seen it’s membership growing in numbers and glowing financially.

The AGM theme is being conducted under the theme ‘Economic Challenges As a Stepping stone to Financial Growth.’

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