Transcript Slide 1

National Association Of Co-operative Financial Institutions
Of South Africa
2014 Indaba
Theme: Strengthening the Institutional base of the CFI Sector
Topic: UNDERSTANDING THE CFI MODEL
14-16 October 2014
East London, S.A
BY : George Ombado , I-CUDE
Chief Executive Officer, ACCOSCA
OUTLINE
A. Features of Co-operative Financial model?
B. Co-operative Financial Institutional Types
C. Stakeholders Analysis in Financial System
WHAT ARE CFIs?
• A co-operative is “an autonomous association of
persons united voluntarily to meet their common
economic, social, and cultural needs and aspirations
through a jointly-owned and democraticallycontrolled.
• Many different types of co-operatives exist, which
specialize in different business sectors.
WHAT ARE CFIs contd………..
• The different cooperatives include; agricultural co-operatives, housing cooperatives, worker co-operatives and consumer co-operatives.
• CFIs (Co – operative Financial Institutions)are typically co-operatives that
offer credit and savings facilities, and in some cases advanced services such
as credit cards, investment and insurance services
• CFIs include co-operative banks, financial services co-operatives (FSCs) and
savings and credit cooperatives (SACCOs) or credit unions.
HOW DOES THE CFI MODEL WORK
contd……
 Equality among members and democratic control are central to the
operations and governance; and
 Building primary (service level), secondary (support level) and tertiary (
advocacy, Regulatory and policy level) co-operatives are structural systems
that are vital to the development of stable, well-functioning operations and
services.
 Their essential elements of ownership and control, and their main purpose
which is to benefit their members rather than to maximize profit is what
has promoted resilience among the members
A Co-operative Organisation?
According to the International Co-operative
Alliance(ICA): a co-operative is an autonomous
association of persons united voluntarily to meet
their common economic, social, and cultural
aspirations, through a jointly owned and
democratically controlled enterprise
The Banking Sector Comparison
Africa
Europe
South East Asia
Population
1 Billion
800 Million
600 Million
*How Many Banks
3,200
10,000
19,200
*% of population Banked
20%
80% +
40% +
*Bank Branch Network
11,000
29,400
40,050
*No. of ATM’s
32,600
250,000
350,000
*2010 estimated figures.
Source World Bank
FACTS - Financial Inclusion Study
Comparing Access across some African countries.
60
RSA '09
4
45
Namibia '07
Botswana '09
22
41
21
Nigeria '08
19
Malawi '08
Zambia '09
14
Rwanda '08
14
Tanzania '09
12
Mozambique '09
12
Banked
9
18
2
24
7
19
8
33
53
55
63
26
52
27
56
1 10
Formal Other
26
52
14
7
4
10
78
Informal
Financially excluded
Source: FinScope Study
Poor Leadership
Lack of Adequate
Capital
Lack of Co-operative
Education
Challenges affecting Cooperative Model in Africa
to support Global
Economy
HIGH OPERATING COSTS:
Low Technology uptake
Lack of Cooperative Data
Government inconsistency
supervision
on
United: THE ROLE OF NATIONAL
CO-OPERATIVE APEXES
Board of Directors
Management
The National Co-operative Apex has the responsibility
of monitoring and coordinating the affairs of all
Cooperative unions in a country and represents
them internationally.
THE ROLE OF NATIONAL COOPERATIVE APEXES
Every National Co-operative Apex desires to be a
leading provider of quality and diversified,
supervisory, financial and technical services to all
types of savings and credit co-operative unions in
accordance with cooperative principles
KEY RESPONSIBILITIES
• Assist in the organization and promotion of
Co-operative principles
• Mobilize funds for granting of loans to affiliate
member co-operative Associations
• Co-ordinate the activities of financing
cooperatives in the country for the purposes of
streamlining the lending &borrowing program among
the affiliates
Banana Skins Survey 2012
1)Overinde
indebtedness
2) Political
interference
3) client focus
Making use of
secure electronic
technology to
make and receive
payments
Investing in existing
income generating
activities within
communities in the
most rural parts of
Africa
Co-operative Strategic Focus
 Global thinking on CFI evolution
 Delivering Value and meeting members needs would lead to
Membership-Growth & Retention
 Expand product and Service lines
 Reduce cost of finance and financial facility
 Governance-Structures/policy direction
 Human Resources
 Social Investment
WAY FORWARD
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Develop a Regulatory Frame work for CU
Publicity/Sensitization
Capacity Building
Deposit Insurance
Cooperative Shares Exchange
Use of Technology in cooperative activities
SPECIAL RECOMMENDATIONS
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•
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A Comprehensive Customer needs analysis to design Products
Explore the possibility of Business Incubation
Training needs assessment to enable continuous education
Entreprenuership Training of Trainers for Co-operative
Leadership
• Co-operative Involved in Structures
CONCLUSION
Co-operative sector continue to provide the security
and safety for the poor in society and those better off
but are at perpetual risk of becoming poor due to lose
of job, business failure or other form of misfortunes.
PARTING GOSPEL
National/Central government need
Co-operative National Apex ,who also
needs government and members.
The benefits are mutual
THANK YOU