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| Business |
| Sunbird Sacco profits 21.6 percent down |
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by
Taonga Sabola, 24 May 2005
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14:35:39
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A decrease in the base lending rates by the Reserve Bank of Malawi (RBM) in June 2004 from 35 percent to 25 percent has forced profits in Sunbird Sacco to drop from K3,19 million in 2003 to K2,5million in 2004.
Sunbird Savings and Credit Cooperatives (Sacco) manager Henock Chakhaza said on Saturday the drop in lending rate forced them to drop their interest rates from 35 percent to 27 percent.
He, however, said although the year 2004 was tough for business the Sacco managed to perform favourably on revenue compared to their budget.
“Last year we managed to register a growth of 10 percent in income, which is a bit better as compared to this year when the growth was small,” said Chakhaza.
He said the sacco is looking for other avenues of boosting its finances apart from loans because, he said, they could end up making more loses if government decreases the lending rate even further.
Chakhaza mentioned unstable economic environment restructuring, termination of services, withdrawal of members who have a lot of shares and savings and the HIV/Aids pandemic as some of the threats the Sacco was facing.
“Last year alone we registered a drop in membership from 1058 to 899 due to restructuring and the sale of Lingadzi inn,” said Chakhaza.
The Sacco’s chairman Nedson Chikuta called on members to work diligently to ensure that Sacco remains transparent and accountable. |
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