Malawi Union of Savings and Credit Co-operations (Muscco) Chapter 1 Alternate Director, Stanley Mpaya, said that Poor policies on Savings and Credit Cooperatives (Saccos) are negatively affecting operations and growth of some cooperatives in the country.

 Mpaya said in other countries, governments have put in place deliberate policies to support growth of Saccos which he described as key in attaining the financial inclusion goal. “Go to Kenya; there is a deliberate policy that even at the highest level of power people are Sacco members. Every minibus you see in Kenya is owned by Sacco members. Most of the big buildings you see there are owned by Saccos. Perhaps it is high time the government came up with enabling policies for Saccos flourish,” he said.

Speaking during the International Sacco Day commemorations in Chikwawa district, Mpaya stated that high default rate is another problem that Saccos in Malawi face. This year Saccos saw a dip in profits while some posted improved profits.