MAFECO calls for swift cooperatives policy review

LILONGWE-(MaraviPost)-The newly established Malawi Federation of Cooperatives (Mafeco) Limited is calling for the quick review of the country’s Cooperatives Development Policy in a bid to incorporate current economic attributes including financial institutions among others.Inclusion of special financial institutions such as commercial banks is recipe for the growth of cooperatives in Malawi which is still at an infant stage.

The majority of the country’s cooperatives are agro-based though some are also in the mining, industrial, forestry, financial and dairy sectors. It is therefore likely that Malawi will in the near future have cooperatives in the other sectors including housing, transport, health and tourism.

Promotion of cooperatives in African countries particularly in Kenya where it’s the main source of employment has proven to be the driver of the economy.

This is the reason the United Nations General Assembly (UNGA) in 1994 set aside first Saturday of July each year to commemorate the International Day of Cooperatives (IDC).

The IDC was set particularly as a principle occasion for creating a world-wide awareness on the important role cooperatives play in the social, economic and cultural development globally.

With this year’s IDC theme titled, “cooperatives: The power to act on sustainable future”, provides a new agenda for UN and reflects on UN’s conviction that cooperatives are highly relevant and important in the realization of the present Sustainable Development Goals (SDG’s).

In an exclusive interview with The Maravi Post after the country hosted its first ever IDC in the capital Lilongwe, Charles Kayesa, Mafeco’s Business Development Manager emphasized the need for Malawi to have a revised policy on cooperatives with the inclusion of lending financial institutions.

Kayesa said although the current policy recognizes cooperatives as a private enterprise, it is out of touch with the present economic situation prevailing in the country.

He hinted that the financial institution will provide an opportunity for cooperative to access loans easily for their growth.

“Mafeco’s vision is to facilitate and coordinate establishment, development and growth of sustainable and democratic cooperatives in competitive environment. Therefore, the IDC strengthens and extends partnerships between the international cooperative movement and other supporting organization including governments.

“This is the reason now we are calling the Malawi government to quickly review the current Cooperative Development Policy to suit economic indicators. We want the policy to incorporate emerging issues such as special lending institutions which will be mandated to help our members to access loans for their business growth. The policy should also have clause on training provisions for cooperatives which is lacking in most of our members,” suggested Kayesa.

In responding to the calls, Cliff Chiunda, Principal Secretary (PS) in the Ministry of Industry, Trade and Tourism assured cooperatives in the country that government will do the needful job of reviewing the policy to suit the current economic situation.

Chiunda encouraged the general public to patronize the Buy Malawi Product Campaign which  he said is a journey to revamp the country’s economic growth of using locally made products.

Registered in June, 2015 under the Cooperative Societies Act of the laws of Malawi, Mafeco is a non-governmental cooperative federation representing the cooperatives movement in Malawi.

Mafeco was established to present, fulfill and to further the interest of its members (cooperatives) with emphasis on lobbying, advocacy, networking and collaboration at local, regional and international levels.

Currently the grouping draws its membership from the secondary cooperatives (cooperatives unions) and that it has eight registered cooperatives unions and 850 primary cooperatives in the country.