Transcript SACCOs AS PARTNERS TO COMMUNITY HEALTH FUND

SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
Neemak Kasunga, Dunduliza
CHF Best Practice Workshop, Golden Tulip Hotel, DSM
31.1-2.2.2007
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
Introduction
SACCOs defined
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Micro financial co operatives [Savings and Credit Co operative Society]
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Formed by group of people on voluntary basis
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Members share the common bond that leads to specific economic, financial and social
objectives
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Registered under the Co-operative Act # 20, of 2003
Types
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Employees based
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Community based
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Combination of the two
Objective
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Provision of micro finance services to low income segment of the society that lead to
contribution of economic and social growth and reduction of poverty.
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
Principles of Co operatives
Seven principles as per ICA
 Voluntary and open membership
 Democratic member control
 Economic participation of members
 Autonomy and independence
 Education, training and information
 Cooperation among co operatives
 Concern for community
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
SACCOs as MFIs
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Provide part of key strategies in reaching MDGs and in building
global financial systems that meet needs of the poorest
Services respond to particular mission and social context of MFIs
Allows poor people access to lump sums of money that can be
invested in income generating activities or cope up with crisis
Solution to reaching the regarded unprofitable population
Provide financial services to the excluded group
Plays the role of financial intermediation
Operates within a framework of the formal financial industry and
maintain financial industry standards
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
SACCOs Win – Win Mission
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Self sufficient organizations that are to provide financial services on
permanent basis
Member/client based institutions, owning/supervising/controlling
themselves
Raise incomes, increase assets, reduce vulnerability, social
empowerment
Contribution towards broader social and economic development
[access to education, health services, better nutrition, improved
dwellings]
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
SACCOs and poverty alleviation
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Only sustainable SACCO can accomplish the task
Applies micro finance best practices to maintain sustainability
Members deposits are well protected
Development of suitable savings and credit services
Members improvement in living conditions
Members access to preventive health care
Members access to savings products
Members access to loans products
Members access to non financial services
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
New Model SACCOs Dunduliza Experiences
Dunduliza federated network of SACCOs
 Started July 2004
 34 SACCOs in 4 regions (DSM-3 plus 4 branches, Mara-10, Mwanza-9 and
Ruvuma-12)
 Number of SACCOs is 1% of the national figure
 7 urban and 27 rural SACCOs
 50 000 plus members as at 30th November 06
 Membership is 12% of the national network
 34% are female members (urban 50% and rural 19%)
 Total savings Tshs. 2.6 billion
 Number of loans 3 670 worth Tshs. 1.8 billion
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
Best performing SACCO
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An average of active 2000 members
A FOSA with good structure
At least three qualified staff (manager, credit officer and a teller)
Proper financial and accounting systems
Compliance to laws, rules, regulations and internal control and supervision
Ideal savings products
Demand driven loans products
Recommendable quality of services
Provision of non financial services
Products under development
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Loan insurance
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Housing loans
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Mobile services
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
Joining the network
 Newly formed SACCOs with potentials
 Existing SACCOs with clean accounts and financial reports
 Amalgamated small SACCOs
Steps
 Contacts with the board
 AGM approval
 MOU signing
 Application of micro finance best practices
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SACCOs AS PARTNERS TO COMMUNITY
HEALTH FUND
SACCOs and CHF
 Members of SACCOs could be members of CHF
 CHF could be members of SACCOs
 Clinics, health centers and hospitals could members of SACCO
 Members monthly/yearly subscription through SACCOs
 SACCO intermediation roles (among members/CFH/SACCO/Health Centers)
CONCLUSION
 SACCOs have both economic and social missions
 Members of both CHF and SACCOs are the center point
 No single intervention can defeat poverty
 Without access to financial services no miracle to poverty alleviation.
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