By Joyce Menyere
Lilongwe, February 5, Mana: The Minister of Trade, Sosten Gwengwe expressed his satisfaction with the progress made by the Malawi Police Savings and Credit Cooperative (SACCO) in its implementation of the financial inclusion and security at large and household level, where Malawi police SACCO is handing out loans to small and medium-sized enterprises and farmers.
Speaking during the event on Tuesday, Gwengwe said having toured different Sacco’s in Malawi people are hardworking and have ideas but have a challenge when it comes to financial access. He encouraged the Malawi police SACCO to continue the good work that they are doing as it is reaching many hardworking and creative people in the country.
“the financial cooperatives that we are working with is Reserve Bank of Malawi to simplify the regulatory regime that are for small SACCO’s which should be hand holding rather than applying bracket regulations for big banks to let the SACCO’s grow”, Gwengwe said.
Ian Mwalungira who is an officer with the Malawi police and a member of SACCO, said that they are happy that as an institution they have grown from 65 to 14,900 members as of 31st December 2024 and total asset book has increased from K300 thousand in 2014 to K7.2 billion.
“K 6 billion has been advanced as loans to the members, who have also been able to mobilize K4.7 billion in shares and savings that are used for onward lending. Our headquarters is here in area 30 and we have now opened a branch in Mzuzu and its satellite in Karonga, another branch in Blantyre and a satellite in Luchenza, and a branch in Zomba and we intend to have a satellite in Mangochi”, he said.
He added that they are yet to reach more members with the use of technology using the member portal and plan to move to mobile banking.
“The Government has a vision of the 2063 agenda of the financial inclusion aspect and access to financial services, where they are trying to create vibrant financial institutions for self-reliance initiatives as offering loans for members, and the ATM strategy where people like those supplying meat in the tourism industry borrow from the SACCO and buy goats”, Mwalungira said.
The Minister of Trade will continue to work with the Reserve Bank of Malawi to simplify the regulation of small SACCO institutions.
