WOCCU Monitors Progress to Malawi's Government Reforms
l-r: Sylvester Kadzola, MUSCCO CEO; Arthur Arnold, WOCCU president and CEO; British High Commissioner and K.Z. Makiyoni, MUSCCO Board Treasurer pose for photo
Madison, WI-WOCCU's president and CEO, Arthur
Arnold recently made a follow up visit to
government officials in Malawi in order to
monitor progress made by government and credit
unions (SACCOs) on resolving major issues of
concern addressed at a previous meeting earlier
In particular, the withholding of salary
by the government for public sector employees has
had a negative impact on SACCOs in terms of loans
and savings. Earlier this year Arnold called
these practices totally unacceptable. At that
time the amount belonging to the members of
SACCOs that was withheld by the government was
Since then the government has changed. The
government has started to release funds,
gradually reducing the amount outstanding. During
a visit with the new Minister of Trade and
Private Sector Development, Eunice
Kazembe, Arnold thanked the new government for
not engaging is such practices and for having
brought down the outstanding amount to MR$15
million. He urged the Government to release these
last funds as well, which is equal to US$150,000,
a substantial amount money in a country where the
per capita income amounts to US$137 per year.
At the meeting with Minister Kazembe, Arnold
accompanied by Sylvester Kadzola, CEO of Malawi
Union of Savings and Credit Cooperatives (MUSCCO)
and WOCCU board member, representing Africa and
MUSCCO board chairman Dickson L. N. Banda.
During the meeting Minister Kazembe pledged to
give full support to the SACCO movement, and is
committed to start using the SACCOs for future
development of the private sector in Malawi.
There are 70 SACCOs in Malawi with a membership
of 55,000. Of the 70 SACCOs, 16 are teacher-
based, 35 employer-based, and 19 community-
Together with MUSCCO representatives Arnold
met with the British High Commissioner, Norman
Ling, who is a strong supporter of SACCOs in
Malawi. The Department for International
Development (DFID), the British government donor,
reporting to the High Commissioner, is proving
funding for a SACCO project in the capital,
Arnold also conducted a workshop on "Good
Governance" for 20 SACCO leaders from all over
the country, as well as government officials.
Arnold engaged the group in a discussion of
corruption as enemy no. 1 for development, i.e.
growth, including in SACCOs. He also shared the
draft Best Practices Principles for Good
Governance that WOCCU will launch at the end of
this year in World Council's publication, Credit
World Council of Credit Unions is the global trade association and development agency for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
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