Mudi Savings and Credit Cooperative (Sacco) Limited on Thursday declared a K113.3 million surplus for the year ending December 31 2021 during its 30th annual general meeting (AGM) in Blantyre.

The surplus represents a 38 percent rise from K82.2 million realised in the 2020 financial year.

Munthali (R) receiving the Member of The Year Award from Mpaya

Half of the surplus will be distributed among shareholders as dividends while the rest will be ploughed back into the business.

Speaking in an interview, Mudi Sacco chairperson Stanley Mpaya said the board gave management a target of K103 million surplus and was pleased that they surpassed it with over K10 million.

He said: “Yes we had challenges such as the Covid-19 pandemic, but we used it as an opportunity by introducing relief loan products and new marketing strategies other than meeting people in person.”

Mpaya said during the period, Sacco experienced membership growth from 8 299 to 13 597 and the its assets grew by 21 percent from K1.4 billion to K1.7 billion.

Looking forward, Mpaya said the Sacco will work on intensifying technologically driven services, growing the loan portfolio by 55 percent and increase the surplus of the current year by 34 percent.

He said: “We would also like to increase membership by 50 percent and the capital base by 50 percent.”

Malawi Union of Savings and Credit Cooperatives (Mussco) regional coordinator for the South Anthony Makuluni commended Mudi Sacco for achieving a surplus.

He noted that job losses due to Covid-19 affected Sacco membership as people withdrew their shares, but he was upbeat that the strategies that various Saccos have put in place will yield positive results.

Elections that were held during the annual gathering saw members of the entire board of directors retaining their positions.

The AGM also recognised outstanding members in various categories. Nation Publications Limited managing editor Ephraim Munthali was named the Member of the Year for maintaining accounts in shares, fixed deposits, ordinary savings and youth savings for his children, among other factors.

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