Story by Memory Chamisa
THE Government has reiterated its commitment to strengthening the regulation and governance of Savings and Credit Cooperative Organisations (SACCOs) to protect members’ deposits.
Various stakeholders within SACCOs met in Harare this Monday to deliberate on the development of guiding principles to be tabled before Cabinet for a Bill that aligns with their needs and priorities.
SACCOs in Zimbabwe are member-owned financial cooperatives that pool savings to provide loans and financial services, primarily for small and medium enterprises (SMEs) and community groups. Stakeholders say there is need for a dedicated legal framework that caters specifically for the sector.
“This engagement was long overdue and we are looking forward to the consultations that are going to be held across the country. Hopefully, once the Bill is tabled before Cabinet, it will be approved,” said Executive Officer of SMEAZ Savings and Credit Cooperative Society, Mr Farai Mutambanengwe.
Board Treasurer of the National Association of Cooperative Savings and Credit Associations of Zimbabwe, Ms Farai Mtawa
welcomed the development, noting SACCOs’ contribution to financial inclusion and poverty reduction.
“This is a welcome development as we note the contribution of SACCOs to financial inclusion and poverty reduction. Emphasis must be placed on the need for stricter regulation to combat mismanagement, limited capital bases, and weak financial practices,” she said.
She added that sustainability and sound financial management remain key priorities for the sector.
“SACCOs have been committed to serving members, but the focus must be on sustainability and sound financial practices. We need to look at how Kenya’s SACCO Bill was enacted and draw lessons from it,” she added.
Once approved by Cabinet, the SACCOs Bill is expected to promote savings, provide affordable loans, and enhance financial transparency and accountability within the sector.
Speaking at the engagement, Senator Monica Mutsvangwa, Minister of Women Affairs, Community, Small and Medium Enterprises Development, said the proposed Bill will be aligned with regional and international standards.
“The SACCO Bill principles shall align with regional and international standards. Regional benchmarking from our peers in Kenya, Uganda and Malawi shows that when SACCOs are given their own legal identity and risk-based oversight, the sector transforms positively,” she said.
She noted that technology presents new opportunities for growth, but also highlighted existing challenges.
“With the advent of technology, there are many opportunities for SACCOs, yet most still rely on manual processes. This reduces efficiency, transparency and competitiveness, especially when compared to banks and mobile money platforms,” she said.
Senator Mutsvangwa also pointed out that limited geographic coverage continues to hinder inclusivity.
“Geographical limitations hinder inclusivity. SACCOs often operate only in specific regions, leaving members in remote areas underserved. Limited networks restrict growth and prevent cooperatives from expanding their reach nationwide,” she highlighted.
The Monday engagement is expected to be rolled out to other provinces, with findings from the consultations to be consolidated and presented to Cabinet for consideration.
