Africa-Press – Eswatini. The Minister of Commerce, Industry and Trade Manqoba Khumalo has said there is a dire need for a proper balance between regulation and supervision and the management of Savings and Credit Cooperatives (SACCOs).
SACCOs are regulated under the Financial Services Regulatory Authority (FSRA) an Act that is promulgated under the ministry of finance with one of its objective being that of securing SACCO members’ deposits against mismanagement. Some SACCOs find it difficult to meet the requirements of regulation due to costs and fees associated with it.
The minister was speaking during the 5th SACCO Indaba held at Esibayeni Lodge, where the SACCO Movement come together to discuss matters of mutual interest. The event brings together leaders and management from SACCOs and other stakeholders in the country.
Collaboration
This event precedes the hosting of the annual continental Savings and Credit Cooperative (SACCA) Congress in August this year. “I further note that such an event is preceding the SACCA Congress organised by Africa Confederation of Cooperative Associations (ACCOSCA), which shall be hosted by the country through Eswatini Association of Savings and Credit Cooperatives (ESASCCO) in August 2022,” he added.
The SACCA Congress event, which will attract leaders of the SACCO movement in the African continent and beyond, will provide a great moment for collaboration and learning among delegates for the benefit of the country as a whole.
Furthermore, the event is expected to contribute to the economy through tourism as in addition to the utilisation of the local hospitality industry, participants may be interested in spending their money in the country’s souvenirs such as handicraft.
The SACCO Indaba provides a platform for SACCO stakeholders to discuss ways to improve the savings and credit cooperative movement in the country.
“It is pleasing to observe that the SACCO Indaba provides a platform for the local SACCO leaders and the movement to share ideas and discuss issues of importance that ultimately help build the momentum required for the industry to move forward,” Khumalo added.
The SACCO movement like any other industry has also been hard hit by the COVID-19 pandemic which continues to destabilise the world economy as some members had to either withdraw their membership or downscale their monthly contributions as a result of job losses.
“We are all aware that the country, just like the rest of the world has been challenged by the COVID-19 pandemic. Such has seriously interrupted the economy and there is seriously a need for recovery,” the minister observed.
The theme for the SACCO Indaba 2022, “SACCOs embracing innovative solutions for resilience,” is encouraging the SACCO members to come up with new ideas to ensure their businesses are least affected by the various challenges and pandemics that manifest themselves not only in the country but the whole world. “I believe that this is needed by the economy.
Encouraging
Government has noted that indeed SACCOs are making a great contribution to the economy. So, it is encouraging to note the effort that seeks to restore business in SACCOs,” he added.
The minister further challenged SACCOs to look for solutions that shall be applicable during these difficult economic times.
The SACCO Indaba further seeks to empower SACCOs for financial stability through savings mobilisation, financing of members’ provident and productive needs. This is because the event also covers the issue of capacity building for SACCO Directors, Management, and Staff. “Board and management relations are very important in giving the right direction and leadership in the SACCO movement.
The common purpose of seeing SACCOs succeed should rule in all that is done in the SACCO movement to ensure that members at grassroots level benefit from their SACCO business and the livelihoods of the members are improved,” Khumalo said.
The minister commended the partnership between the Eswatini Cooperative Movement and DGRV, a German Co-operative and Raiffeisen Confederation, which is providing technical support to the cooperative movement. Among other assistance, DGRV has helped in the launch and implementation of the Core Cooperative Management System (MAMBU) and the establishment of the National Cooperatives Federation of Eswatini (NCFE).
The minister further challenged SACCOs to implement all the decisions taken during the Indaba for the improvement of the SACCO business in pursuit of the cooperative principles. He then pledged government’s support in encouraging efforts directed towards helping the resuscitation of the economy.
Present during the event were ESASCCO President and the Board of Directors, DGRV Regional Director, Central Bank of Eswatini, FSRA, Eswatini Multi-Purpose Cooperative Union and Eswatini National Youth Cooperative Association.
For More News And Analysis About Eswatini Follow Africa-Press
