NATIONAL ASSEMBLY OF ZAMBIA
PARLIAMENT BUILDINGS
SPEECH DELIVERED BY THE CLERK OF THE NATIONAL ASSEMBLY AT THE VIRTUAL LAUNCH OF THE NATIONAL ASSEMBLY OF ZAMBIA SAVINGS AND CREDIT COOPERATIVE SOCIETY LIMITED (NAZ-SACCO) ON WEDNESDAY, 4TH AUGUST, 2021
REPRESENTATIVES OF THE NATIONAL ASSOCIATION FOR SAVINGS AND CREDIT UNIONS (NASCU);
BOARD MEMBERS OF OTHER SAVINGS AND CREDIT CO-OPERATIVES (SACCOS) PRESENT;
THE INTERIM BOARD CHAIRPERSON OF THE NATIONAL ASSEMBLY OF ZAMBIA SAVINGS AND CREDIT CO-OPERATIVE SOCIETY LIMITED (NAZ-SACCO), MR MICHAEL MUKUKA;
THE ACTING GENERAL MANAGER OF THE NAZ-SACCO, MR SAGE SAMWIKA;
THE INTERIM BOARD OF DIRECTORS OF THE NAZ-SACCO;
STAFF OF THE NATIONAL ASSEMBLY OF ZAMBIA;
LADIES AND GENTLEMEN;
Good morning.
On behalf of the Hon Mr Speaker and indeed on my own behalf, allow me to express my sincere gratitude for your attendance at today’s virtual launch of the National Assembly of Zambia Savings and Credit Cooperative Society Limited (NAZ-SACCO).
As some of you could be aware, the National Assembly has for some time now considered establishing a Savings and Credit Co-operative (SACCO) in order to, among others, develop and encourage a saving culture among staff.
This is because a SACCO provides relatively cheap credit to enable members embark on investments that would help them improve their economic and social wellbeing as well as provide a means of sustaining themselves when they are no longer in employment.
Distinguished guests, ladies and gentlemen,
One distinguishing factor about a savings and credit co-operative is that it is a member owned, member driven and member controlled financial Institution.
SACCO provides services to its members which are similar to the services provided by commercial banks and micro-financial institutions.
These include deposit taking, that is, allowing members to maintain savings accounts, and providing loans and other financial services.
Other advantages of savings and credit co-operatives, which staff of the National Assembly can benefit from, include the following:
(i) development of a saving culture amongst members;
(ii) earning dividends on shares that members hold. As you would be aware, members are not just customers but also shareholders. In this regard, they get a return on their investment;
(iii) having a say on how money is used. As shareholders Members participate in deciding how best to use the money for their benefit;
(iv) interest rates on both loans and savings are low and generally better than those offered by commercial banks and other financial institutions;
(v) provision of easier and quicker loan approval processes;
(vi) ultimately, members are liberated from dependence on money lenders and unfriendly banking terms; and
(vii) provision of training for members in financial literacy and possible areas of investment.
Distinguished guests, ladies and gentlemen,
I am cognisant of the fact that despite many advantages associated with the need to establish SACCOS, in many countries, including Zambia, the option has not been fully exploited.
Consequently, a lot of countries have not benefitted from the potential of SACCOS to mitigate some of the immediate socio-economic needs.
Given the many advantages associated with SACCOS, the National Assembly of Zambia, in 2019, embarked on the process of establishing a SACCO in the Institution.
Accordingly, management tasked the board of trustees of the National Assembly Staff Pension Scheme to look into the modalities and commence the process of establishing the SACCO.
Distinguished guests, ladies and gentlemen,
I am pleased to inform you today that the National Assembly of Zambia Savings and Credit Co-operative Society Limited was duly registered under the Co-operative Societies Act No. 20 of 1998 on 14thFebruary, 2021, with an initial membership of thirty (30).
As you may be aware, that membership to the SACCO is open to all permanent and pensionable employees of the National Assembly. To this effect, may I take this opportunity to urge all eligible members of staff to join the NAZ-SACCO.
Let me also take this opportunity to commend the Board of Trustees of the National Assembly of Zambia Staff Pension Scheme for working tirelessly to ensure that the NAZ-SACCO becomes a reality.
I have no doubt in my mind that NAZ-SACCO, once fully operational, will mitigate some of the many challenges that staff of the National Assembly face, especially in view of the high interest rates charged on loans by most financial institutions.
Further, it is my expectation that SACCO will foster a saving culture and a more prudent use of funds amongst National Assembly staff.
I wish to implore the interim board of NAZ-SACCO to network with other SACCOS that have been in existence for a while in order to learn about the opportunities and challenges they have encountered in their operations, especially in the area of investment.
Further, I urge the interim board to hit the ground running and ensure it puts in place a robust array of policy documents to govern the operations of the NAZ-SACCO. These should include:
Ø shares policy;
Ø savings policy;
Ø investment policy; and
Ø loan policy.
As I conclude, I wish to reiterate my call to all eligible members of staff of the National Assembly to take advantage of this initiative and register as members of the NAZ-SACCO.
This will not only help you broaden your financial capacity but also increase your savings portfolio.
Distinguished guests, ladies and gentlemen,
It is now my singular honour and privilege to officially declare the National Assembly of Zambia Savings and Credit Co-operative Society Limited (NAZ-SACCO) officially launched.
I thank you.
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