Malawi Union of Savings and Credit Cooperatives (MUSCCO) is a member-based organisation of Savings and Credit Cooperatives (SACCOs) operating throughout Malawi.
MUSCCO was established 15th September, 1980 with a mandate to promote service and support SACCOs in Malawi. At the same time that MUSCCO was formed there were 26 SACCOs with savings amounting to MK360,000 and a loan portfolio of MK354,000. Both MUSCCO and SACCOs have experienced steady growth since 1980.
The Chief Executive Officer (CEO) who is appointed by the board of Directors in accordance with MUSCCO bylaws manages MUSCCO. The CEO attends to as ex-afficio, all General Meetings, all meetings of Board of Directors and the Executive Committee and such other meetings as may be directed to attend. A team of professional staff who manage the departments and sections supports the CEO.
KEY SERVICES OF MUSCCO
The following is a brief description of the key services that MUSCCO provides to its membership SACCOs;
MUSCCO operates a Central Finance Facility (CFF) whose requirements dictate that SACCOs invest 10% of their share capital and 15% of their deposits in the CFF. The purpose of the CFF is to provide the affiliate SACCOs with liquidity management system and a source of short financing. It also affords the affiliated SACCOs main banking facilities where they invest and borrow at a competitive rate. The facility is also designed to mop up liquidity (in both shares and deposits) from the SACCOs and to pay a competitive rate of return. MUSCCO uses the revenue from CFF as its primary source of operating income.
MUSSCO provides specialised technical assistance to affiliated SAACCOs and public relations through the Business Development Unit. Core technical services provided are;
-Business planning and budgeting
-Policy formulation and promotion
-Research and analysis courses design
-SACCO education programs design and training materials
MANAGEMENT INFORMATION SYSTEMS
MUSCCO also provides its affiliates with technical support on;
-Accounting procedures and systems
-Computer systems management information systems
-Database development and operation
-Data entry and transmittal
-Internet and network systems
MUSCCO develops and institutionalises a broad range of training and technical services. This includes facilitating advancing knowledge and use of technology among member SACCOs. It also includes training and actual facilitation of installing new technology among member SACCOs.
AUDIT AND INSPECTION
MUSCCO has been mandated by the Registrar of Cooperatives in the Ministry of Industry and Trade to conduct annual audits in all SACCOs and conduct inspection on a regular basis. MUSCCO ensures that SACCOs are safe and sound and comply with all statutes as laid down in the Cooperative Act as well as in the MUSCCO and SACCO By-laws