Government has pledged to support the growth and sustainability of Savings and Credit Cooperatives in the country, saying the movement is key to empowering Malawians financially and reducing poverty.

Minister of Industrialization, Business, and Trade, George Partridge, said the government will collaborate closely with SACCOs by clearing delayed remittances, reviewing outdated laws, and creating a policy environment that allows the sector to grow sustainably.

He made the remarks on Friday during the MUSCCO Annual SACCO Conference in Salima, held under the theme “Facing the Present and Future Malawi Economic Reality: Power of Collaboration and Innovation for Sustainability.”

George Partridge, said the government is committed to clearing the K6 billion delayed remittances so that SACCOs can operate effectively to assist in scaling up the country’s economy.

Partridge assured that his ministry will work closely with the Ministry of Finance and other stakeholders to address perennial challenges in the SACCO sector.

MUSCCO Board Chairperson, Alex Ntungama, said that although SACCOs have grown steadily, rural financial inclusion remains low.

“We need stronger collaboration and more partners to help us expand into rural communities. Doing business in these areas is costly but necessary, because that is where most Malawians live,” Ntungama said.

Reserve Bank of Malawi deputy governor   Kisu Simwaka, said the SACCO sector continues to grow, with assets now at K146 billion and membership approaching half a million.

“Deposits have risen from around two billion in 2012 to about 95 billion, and the loan portfolio has grown to around 90 billion kwacha. This is encouraging, but much as we have done well on those fronts, penetration rate remains low. We are talking about around 2%, while regionally the average is about 13%, and in Rwanda it is quite high, around 46%,” Simwaka said.

The conference brought together SACCO leaders, financial regulators, policymakers, and cooperatives from across the country to discuss solutions for strengthening the sector and expanding financial inclusion.

(Written By: Fegson Phabuli)