SUCOMA Sacco’s grew by 23% in 2023

SUCOMA Savings and Credit Cooperatives (Sacco) has reported positive financial results for the fiscal year 2023, with a notable 7.46 percent growth in profit.

This was revealed during the Sacco’s’s 29^th Annual General Meeting-AGM held in Nchalo, where it was disclosed that profit grew to K181.39 million in 2023, from K168.8 million in 2022.

The outgoing board chairperson Smart Sikelo, announced a significant rise in profits followed by 23% asset growth which surged to K3 billion from K2.4 billion despite economic challenges.

“This uptick in profitability reflects the Sacco’s resilient performance amidst a turbulent economic landscape characterized by events like Cyclone Freddy and a 44% devaluation.

“We are encouraging existing members to increase their shares through higher capital deductions per share and actively involving them in recruiting new members. These initiatives aim to improve liquidity and expedite loan disbursement processes,” Sikelo said.

Leroy Banda, head of cooperative development and projects at Malawi Union of Savings and Credit Cooperatives (MUSCCO), commended SUCOMA Sacco’s performance.

With 42 Sacco’s boasting over 230 thousand members collectively, Banda stressed the importance of financial literacy programs to empower individuals and institutions in navigating the economic landscape.

He said; “The performance is impressive considering that the economy, overall is stressed, the value of kwacha is weakened. This therefore, calls for prudence in managing the finances both at individual level and at institution level, therefore there is a need for more financial literacy programs so that people are made to understand that sacco’s are meant for their own economic growth.”

SUCOMA Sacco was established in 1995 under the amended Cooperative Societies Act. No 36 of 1998 as a financial intermediary.