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Sep 23 2022

Minister of Trade and Industries Mark Katsonga says Savings and Credit Cooperatives (SACCOs) are a foundation for development in Malawi.

Speaking after touring Mudi Sacco in Blantyre and Thyolo Teachers in Thyolo, he said the cooperative model helps people save and borrow from a pool of common resources.
Said Katsonga ‘People  save their money with Sacco and they go back to borrow the same money  to do  a variety of projects. Thats why am saying the Sacco Savings model is a foundation of serious development in Malawi’
The minister said he was impressed with the level of organization in the Saccos and the Cultivation of the a Saving culture. He said lack of a saving culture is one of the factors that have plunged people into poverty.   ‘Saving culture is a problem in Malawi. People believe in getting their money and spending it, this to a certain extent, contributes to our lack of development because development comes with money which individuals save’ said Katsonga.
Mudi Sacco board chairperson   Stanley Mpaya said the minister’s visit raised the Sacco’s profile and accorded them a chance to raise Challenges that the cooperatives face in the operations.
Thyolo Teachers’ Sacco board chair Fortunate Chanza said his organization is steadily growing. Both Saccos cited delayed remittances as one of the challenges impeding their  operations. ‘Remittances are like fuel for cooperatives. Without remittances, we cannot operate,’said Chanza.
Malawi Union of Savings and Credit Cooperatives chief executive officer Fumbani Nyangulu said the minister’s visit provided an opportunity to showcase the potential thatSaccos have in providing services to Malawians.
Malawi has 41Saccos that are registered with the Reserve Bank of Malawi.



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