Malawi Civil Servants' Cooperative Hits K12B Profit, Eyes National Bank Expansion
As UCSSACCO continues to expand, its success story offers a compelling narrative of grassroots financial empowerment.
MZUZU, MALAWI — The United Civil Servants Savings and Credit Cooperative Society (UCSSACCO) reported a stunning K12 billion profit in 2024, positioning itself as a potential catalyst for national economic transformation, writes Tionge Hara.
The cooperative, which has grown its membership from 63,000 to 82,000 in just one year, attracted high-level attention from government officials, including Trade and Industry Minister Sosten Gwengwe, who visited the organization's headquarters to recognize its achievements.
UCSSACCO's Chief Executive Officer Francis Waliwa highlighted the organization's remarkable growth, revealing that total assets have surged from K21 billion to K48 billion.
The cooperative's loan portfolio expanded to K36 billion, underscoring its increasing financial strength.
"We have grown our assets to K48 billion from K21 billion. Loans have also grown to 36 billion. And we have made a profit of K12 billion," Waliwa told reporters.
Minister Gwengwe praised the cooperative's performance, noting that UCSSACCO has been rated the "fastest growing circle in the entire continent of Africa."
He challenged the organization to collaborate with other savings and credit cooperatives to establish a development cooperative bank.
"If the households are financially secure, the government can concentrate on doing productive developments that add to GDP growth in a country," Gwengwe said.
"It's essentially a game of numbers."
The minister outlined an ambitious vision to increase cooperative membership from the current 2% to potentially 20% of Malawians.
He emphasized that tax exemptions on cooperative surpluses are one mechanism to support these financial institutions.
Waliwa echoed the minister's sentiment, drawing inspiration from Kenya's cooperative banking model.
He pointed out that seven years ago, their total assets were less than K1 billion, demonstrating the potential for exponential growth.
"We want to change the lives of these people," Waliwa said.
"We are sure that when we reach out to everyone, we are going to touch their hearts so that they come and join the Sacco."
The cooperative's board chairperson, Jessie Eneya, revealed an interesting detail: President Lazarus Chakwera has been a member of UCSSACCO for two years, signaling high-level confidence in the organization.
UCSSACCO's strategic vision centers on wealth creation and financial inclusion.
The cooperative serves civil servants, parastatal employees, and private organization members, offering an alternative pathway to financial security.
The organization distributed K2 billion in dividends to its members in the previous year, providing additional financial relief, particularly during periods of delayed salary payments.
Government plans include approving a comprehensive cooperative development policy that would support financial cooperatives like UCSSACCO, as well as cooperatives in agriculture and mining sectors.
Gwengwe articulated a broader economic strategy: "We believe that if Malawians patronize these Saccos, bank with Saccos, then they'll be able to have more members, more subscriptions, more business because they'll be lending each other."
The potential establishment of a cooperative development bank represents a significant milestone.
Modeled after successful examples in countries like Kenya, this institution could provide Sacco members access to high-street banking services and facilitate larger, capital-intensive investments.
As UCSSACCO continues to expand, its success story offers a compelling narrative of grassroots financial empowerment.
By focusing on membership growth, strategic investments, and member benefits, the cooperative is transforming individual financial landscapes while contributing to national economic development.
With plans to increase membership and potentially establish a cooperative bank, UCSSACCO stands at the forefront of Malawi's economic innovation, demonstrating that community-driven financial institutions can be powerful engines of social and economic progress.