Annual Reports

Chairman's Report - SACCOL AGM 2010

CHAIRPERSON’S REPORT
SACCOL AGM 2010- OSNER HOTEL, EASTERN CAPE

1. INTRODUCTION

Ladies and Gentlemen:

First of all I would like to take this opportunity to welcome everyone who has come to be part of the SACCOL 13th annual General Meeting in the Eastern Cape. For those people who are attending SACCOL AGM for the first time this year. May I also say thank you to them, and hope that the experience they will get from this meeting will be value adding to themselves as individuals and to their organizations. I would like to thank you for becoming part of SACCOL’s “People helping people” family and we look forward to a long and sustainable relationship with you.

May I also take this opportunity to express our sincere appreciation to all the people that made presentations in the last two days and also those that are still to present. On that note, I would also want to express our sincere gratitude to Mr. Mbulelo Jolingana the Senior Manager for Enterprise Development at the Department of Economic Development and Environmental Affairs. I have been told of the passion that Mr. Jolingana has for co-operatives and we want to assure him that SACCOL is willing to journey with the department in making sure that we co-operate people out of poverty in the Eastern Cape.

A few years ago SACCOs in the Eastern Cape were supported by the Swedish Co-operative Centre (SCC). That project saw a phenomenal growth of co-operatives in the Province. The departure of SCC has left a void in the province and as such the SACCOs are now challenged by sustainability issues. It is our hope that the hosting of our AGM in the province can create linkages with your department to assist the local co-operatives.

2. ENVIRONMENTAL OVERVIEW

Ladies and Gentlemen:

As South Africans, we are happy to say that we are out of the recession, however the recession left some of our SACCOs with indelible marks. The effect of the economic downturn will still be affecting us a few years to come. Our consolation is only on the knowledge that in the financial sector worldwide, SACCOs and Credit Unions were not as highly affected as most of the other types of financial institutions were. This can only affirm that savings and credit co-operatives are really a “SAFE AND SOUND ENVIROMENT”

During the year under review we saw interest rates changing 5 times from prime rate of 13% in April 2009 to the present 9.5%. This goes further to demonstrate the volatility of our financial sector and this demands that as SACCO leaders we need to be aware of the economic conditions under which we are trading and take remedial actions where necessary.

3. MICRO ECONOMIC ISSUES AFFECTING OUR MOVEMENT

South Africa still ranks high in the world poverty scale at number 23 with 50% of the population living below the poverty line. This is where Savings and Credit co-operatives should be making the difference. Our unemployment rate is still very high at 25, 3% with a life expectancy of 49 years. These statistics show the kind of challenges the country has and pose a challenge to us as co-operatives to intervene by making a difference in people’s lives. It is for that reason that we invite all institutions that are involved in the provision of financial services to poor communities to join hands with us in a fight for financial inclusion and poverty.

4.0 LEGISLATIVE ENVIRONMENT.

We really appreciate the kind of legislative environment that the government has created through the Co-operative Act, the Co-operative Banks Act and other related legislations like the National Credit Act. This new legal and operating environment has provided better affordable opportunities for all of us to take the movement into a higher level. South Africa has been the first mover into the creation of a financial co-operatives specific legislation and as such let us work together to ensure that we became the first country to provide financial freedom to our communities.

In January 2010, the Supervisors of Co-operative banks published the operating rules. We are very grateful for the fact that they were designed to encourage financial inclusion and are very much at the same level as world class supervisory tools like the PEARLS.

5. CO-OPERATIVE BANK DEVELOPMENT AGENCY

As a movement we are very proud to see the Co-operative Banks Development Agency taking strides to fulfill its mandate. A few years ago this was a dream but today SACCOL can confirm that CBDA is alive. With them we have had several workshops on the process of applications for prospective co-operative banks; we also had training workshops on PEARLS, setting up of interest rates and loan management. Our Appreciation goes to the Managing Director Ms Sharda Naidoo and her staff members for not loosing the sight on the fact that “together we can do more” and also all the Supervisors and their colleagues for their assistance through the application process. On that note we want to take this opportunity to welcome Mr. Robert Mbeza the Director for Capacity Building for the CBDA and the his assistant Ms Nomadela Sauli. As a SACCOL we look forward to benefiting from the wealth of experience that you bring to the sector.

5. SACCOL BOARD MEETINGS

Ladies and Gentlemen:

It is the duty of the Board to continuously hold Board meetings. Our challenge this year was financial constraints. Despite that, we managed to hold 2 contact board meeting and five teleconferences. This was to ensure that we still deliberate on SACCOL issues and rise above the financial constraints. May I take this opportunity to thank my fellow board members for an outstanding work done throughout the term. May I also report that when we started the year the board had two vacancies as a result of the retirement of Siyabulela Hodi and one other member that was relieved of his duties as a result of non attendance. The Board co-opted Ms Veronica Padi to serve in the Board for the rest of the year as the constitution allows. Those two positions become vacant again this year.

6. BOARD VACANT POSITIONS

This year we will have a total of 5 vacant positions in the board. Three Board Members; Patson Ngwevela, Corinthian Gcozo and Elias Mathebula are retiring, and there is the additional two positions that were left by Mr. Siyabulela Hodi and Sthembile Mnyakama. On behalf of the Board and our membership I would like to express my sincere gratitude to the retiring board members who have worked tirelessly to ensure the success of the association.

7. SACCOL PERFOMANCE

The SACCOL once again made a loss of (R 231 090) which is less than R 495 377 obtained last financial year. The revenue base for SACCOL is now very low which has also impacted on the service delivery. I have received numerous complaints from member SACCO about the issue of SACCOL services and I would like to engage membership on ideas that will ensure that this very important mother body does not perish. Whilst good service delivery is non negotiable, SACCOs are reminded to pay their fees and dues because SACCOL depends on the fees and dues to finance its activities.

The Total assets are at R 2 million which is 2.7% more than last year. However this is not a strong financial position in view of the fact that the liabilities are equally high.

8.0 GROWTH OF THE MOVEMENT.

Despite these trying economic conditions we have seen an impressive growth in the movement. Total membership grew by 43% to 26 164. This is almost in line with our goal in the strategic plan of reaching 30,000 members by 2011. Notable in the statistics is the growth of SACCOs in the KwaZulu Natal Province. This province at the end of March had a membership base of 4 483 members spread between 17 SACCOs.
The total assets for the movement are now R 130,098,152 with outstanding loans of R 89,925,457 and savings of R 117, 088,670.

A process has already been started to engage the Financial Services Co-operatives to be part of SACCOL. A proposal is being made to have them pay fees and dues based on the membership. An amount of R 20 per member per year is being suggested by the board. Your input is requested

9. STRATEGIC REVIEW.

This past year, our strategic direction was driven by SACCOL strategic plan and resolutions taken at the last AGM in KwaZulu Natal. As a result of that, key issues during the year were:-

(a) Registration of SACCOs that qualify to be Co-operative Banks

This is a process that has been driven through the assistance of the CBDA. I am told that CBDA is now doing assessments. As a movement we look forward to the launching of the first Co-operative Bank in South Africa.

(b) Registration by SACCOs under the Co-operative Act of 2005

I want to request all SACCO to ensure that they are all registered under the Co-operative Act of 2005. This is an important exercise because the old registration numbers are no longer applicable. We congratulate those SACCOs that have undergone the process.

(c) Repositioning of SACCOL as a result of the dispensation of the Co-operative Banks Act of 2007

It was our hope that in this AGM we were going to be launching SACCOL under a new strategic position. However this process includes the registration of CFF as a Secondary Co-operative Bank and also the reconstituting of the movement’s role and functions to take advantage of the opportunities being availed by the new legislative environment. Documentation to apply for a banking license as a Secondary co-operative has already been submitted. We are still fine tuning the constitution and the business plan after which due diligence will be done by reserve bank. We look forward to be the first Secondary Co-operative Bank in South Africa.

(d) Procurement of banking technology.

It is apparent that the fundamental constraint impacting on the future growth strategy of our movement is the lack of a standard, cost effective banking system that has a capability to allow members to have access to their funds anytime they want. Members may want to use the co-operative model for their banking activities; however the lack of access to their funds is a limiting factor. We have started a process to look at different banking systems and we are confident that we will have your support to ensure that this dream is achieved. The success of this project depends a lot on members’ buy-in and support.

10. SACCA CONGRESS 2008.

Ladies and Gentlemen,

It was very sad to see the end of SACCA congress in Africa as a result of the withdrawal of assistance by WOCCU. ACCOSACA has given us the opportunity again. This first SACCA congress to be organized by ACCOSCA will take place in Swaziland from 4 to 8 October 2010. Swaziland is our neighbor and traveling to Swaziland is affordable. SACCOs are encouraged to attend this conference. SACCOL has organized accommodation at R 500 per night including bed and breakfast.

11 CONCLUSION

The majority of our SACCOs are struggling and operating from a very low membership base and very little assets. This makes them unsustainable. We need to work together to build the movement. Government support through the Co-operative Banks Development Agency is really appreciated however our success and sustainability depends on ourselves and taking advantage of available opportunities. We need to work together toward building a strong movement.

I thank you

Patson M Ngwevela
SACCOL Chairperson

General Managers Report - March 2010

1.0 INTRODUCTION.

The year 2009/2010 was a very challenging year for both SACCOL and most of our SACCOs as a result of very difficult economic conditions. This challenging economic period resulted in very difficult trading conditions for SACCOL. The organisation depends on fees and dues to pay for its operations since donor funding is no longer available. Service delivery depends on SACCOs paying fees and dues so if SACCOs are not paying it makes it difficult for the SACCOL to deliver.

During the year, the SACCOL operated with very limited staff members as a result of positions that were not replaced last financial year. Despite these trying conditions SACCOL was able to continue to work towards the fulfilment of its mandate paying particular attention to the following key areas:

  • Representation of SACCOs locally and internationally
  • Development and Training of SACCO
  • Supervision of SACCOs

2.0 HIGHLIGHTS FOR THE YEAR.

  • SACCOL was granted a service provider status by the CBDA. This means that SACCOL can be assigned by the Agency to perform specific duties.
  • Nine SACCOs started the process of registration with the Co-operative Banks Development Agency to become co-operative banks. This process includes filing application forms, re-aligning their statutes, and drawing up of business plans.
  • Through an appointment as a service provider, SACCOL conducted two workshops with the co-operative banks applicants. The first workshop was on ratio analysis and setting up of interest rates and the second was on Loan and Risk management.
  • The SACCOL and the CBDA also conducted Benchmarking workshops in Gauteng, Eastern Cape and Cape Town for the small SACCOs to determine amongst other things what level of development they are at.
  • SACCOL together with ACCOSCA held a SACCO leadership conference in Johannesburg.

3.0 ENVIRONMENTAL OVERVIEW.

3.1 Economy.

During this period, for a better part of the year, the country was still experiencing a negative impact of the economic downturn up to the second quarter of 2009. The South African Government through relevant policies worked hard to stabilise the economy and South Africa started to pull out of recession. However for most of the year, real household consumption expenditure weakened thus declining real disposable income and increasing household debt. This manifested in high delinquencies in the micro finance sector including financial services co-operatives. Towards the end of the financial year SACCOs started to experience a recovery. For the first time in many years, some of our strong SACCOs had a negative growth and performance, a few because of delinquency and others because of the loss of a lot of members through retrenchments.

3.2 Social.

Unemployment in South Africa remains very high; at 34.2 percent.
Poverty: South Africa ranks number 31 on the global poverty scale with 50 percent of its population living below the poverty line.
Literacy: There is a notable decline in the percentage of people aged 20 years and above with no formal education.

3.3 Legislation

There was no significant change in legislation that affects financial services co-operatives. Rules for the operationalization of the co-operative Banks Act were published in January 2010.

3.2 Amendment of the Co-operatives Act 2005

The comments towards the amendment of the Co-operative Act of 2005 were made and sent to DTI.

4.0 SACCOL ORGANISATIONAL REPORT.

AFFILIATION

4.1 Woccu

The World Council of Credit Unions held its AGM in Las Vegas in July 2010. There was no representation from SACCOL at the meeting because of financial constraints. During the past year WOCCU recorded a total affiliation of 49 330 members from 97 different countries. Total individual membership is now 184 million.

4.2 SANNASCO

This is a Southern Africa body where SACCOL also affiliates. There were no activities organised by the Southern Africa National Association of Savings and Credit Co-operatives during the past year. The last meeting was in Lesotho in 2008.

4.3 ACCOSCA

ACCOSCA -The African Confederation of Co-operative Savings & Credit Associations is a Pan-African Confederation of National Associations of Savings and Credit Co-operative Associations. ACCOSCA was registered in 1968 and aims at empowering SACCOs in Africa. The Secretariat is based in Nairobi, Kenya.

In March 2010 ACCOSCA and SACCOL hosted a SACCO Leaders’ Forum which was attended by SACCOs from different countries in Africa. The event was held at the Birchwood Hotel and conferencing in Johannesburg. This was a well attended conference and was graced by the presence of Government officials from DTI and the National Treasurer. Mr Jeffery Ndumo from the DTI officiated on the opening ceremony and Ms Sharda Naidoo the Managing Director of the Co-operative Banks Development Agency officiated at the closing ceremony.

4.4 SACCA Congress

ACCOSCA together with the Swaziland Association of Savings and Credit Co-operatives will host the 11th SACCA congress in Swaziland from 4-8th October 2010. SACCO board members are invited to attend this very important interaction and education forum. The Registration fee is $ 200 and SACCOL has arranged accommodation at R 500 per person per night per person which is for bread and breakfast.

4.5 National Co-operative Association( NCASA)

SACCOL is still affiliated to this body. NCASA held its AGM in Rustenburg on 26 February 2010. SACCOL was represented by the chairperson and a few board members.

5.0 REPRESENTATION

SACCOL continues to represent SACCOs in a variety of forums which include national and provincial governments departments, statutory bodies, development organisations, donors, business as well as NGOs and CBOs. During the year SACCOL participated in discussions in the Eastern Cape about its co-operative strategy.

5.1 National Development and Labour Council(NEDLAC)

The Chairperson and the General Manager sit in the NEDLAC on behalf of co-operatives. The NEDLAC is working on a program to get involved in the promotion of Savings in the country.

5.2 South African Microfinance Apex Fund (SAMAF)

SACCOL has continued to engage SAMAF about activities it has with SACCOL affiliates. The few SACCOs that are involved with SAMAF are having difficulties in meeting their financial obligations. That has made SAMAF to request SACCOL to assist in some of these issues. This has been not easy for the SACCOL because in the majority of cases, when SACCOs get involved with SAMAF, SACCOL is never informed.

5.3 DTI Co-operative Unit.

SACCOL also participated in the discussions being carried on by DTI on the amendment of the Co-operative Act of 2005.

6.0 SUPPORT PROGRAMS.

During the year under review, SACCOL only had the Umsobomvu project to run. This project was challenged by the fact that Umsobomvu Youth Fund was incorporated into the National Youth Development Fund and as a result of that only one disbursement was given and no funds were received. The originally approved grant funding was 4 million; SACCOL only received R 1 million which was used in the development of SACCOs in KZN. The province now has a total of 17 SACCOs. The NYDA have made promises that they will continue funding the project as soon as they themselves receive funding from government.

With regards to funding of more projects, SACCOL did approach a number of provincial government departments to get funding and to assist them in developing SACCOs within these provinces. No positive response has been received as yet.

7.0 CORPORATE PROFILE

SACCOL raises its profile and SACCOs profile through a number of activities. These include.

7.1 Website www.saccol.org.za is still one of our primary contact points for the general public. The SACCOL website was upgraded during the year. The Website is still under development. SACCOs will also be invited to post information on the web-site for their own publicity. Members are requested to visit the website so that they can give advice on what else to include.

7.2 Masithethe List serve .This media was not used much during the year. We urge SACCOs to take advantage of an opportunity to reach out to a broader community of SACCOs connected to this electronic media

7.3 Masithethe Newsletter. As a result of lack of funds, the newsletter was not produced during the year.

7.4 Annual calendar for 2010 were produced for only a few SACCOS. Some SACCOs decided to do this activity for themselves.

8.0 STAFFING

For the whole year SACCOL operated with four staff members. The General Manager, the Financial Manager, the Accountant and one Development Officer. The Training and Development Manager resigned in October 2009 for greener pastures. SACCOL was not able to replace resigned staff members because of financial constraints. This impacted negatively on our ability to cover all SACCO needs.

SACCOL Organisational Chart

SACCOL Organisational Chart

11.0 SACCO DEVELOPMENT

11.1 SACCO growth
As a result of the Co-operative Banks Act, SACCOL received a lot of inquiries about formation of new SACCOs. A lot of groups purchased the starter pack packs to form study groups. Out of these we registered the following SACCOs.

Gauteng Province

Bambelela Savings and Credit Co-operative – Orange Farm common bond is People living in orange farm and surrounding areas

HG SACCO - all employees and staff of Hospitality and General provident Fund and employees of participating groups.

KwaZulu Natal

Umnothowethu SACCO - All employees of the Department of the Economic Development and Tourism in KZN
Inkazimulo SACCO -People residing and working at Inkandla
Isisekelo Sethu SACCO- People living at Godide,Ngonono
Umkhumbi kaNoah SACCO- People living within Mbabane
Sekulungile SACCO- People living in Verddriet and surroundings
Sonqcobangaye SACCO-People residing in Flint, and Dosert
Kufeziwe SACCO- People living Umzimnyama District
Senzokwethu SACCO- people living in Emmause ares
Sonqoba SACCO-
Amandlethu SACCO- People living in Cornfield
Umzamowethu SACCO-People living in Mhubheni
Ndukenhle SACCO- Kwanbonambi area
Groenvlei SACCO-Shabalala tribal authorities
Sibambene SACCO-Mbatha and Mabaso tribal authorities
Masakhane SACCO- Kubheka areas

NorthWest: Mmogo Re Kakgona – People working and residing in Bojanala municipality in Rustenburg

A breakdown of our membership looks as follows

  Mar-10 Mar-09
  Urban Peri Rural Total Urban Peri Rural Total
Full members 11 5 9 25 11 5 9 24
Provisional members 5 3 25 33 4 3 13 12
Paying members 16 7 34 58 15 14 7 43

 

11.2 Membership and provincial membership

Membership and loans also grew during the year. The growth is summarised below as follows:-

    2006 2007 2008 2009 2010
Members   12,608 13,332 13858 14741 26,164
Western Cape   2,665 2,817 2828 3308 6163
NorthWest   1,028 1,077 1147 1330 1468
Gauteng   2,422 2,630 2613 2902 3658
Eastern Cape   1,441 1,638 1869   1347
KwaZulu   856 400 272 3272 4483
Northern Cape   181 181 181 181 201
Mpumalanga   482 1,233 1768 2558 2841
Limpopo   519 488 608 610 658
National   3,014 2,868 2672 3084 5346
Loans   34,536,722 48,197,025 58,045,658 66,606,249 89,925,457
Western Cape   4,370,395 4,283,459 4,113,469 5,636,121 4,154,060
NorthWest   3,830,409 4,051,339 4,586,561 5,758,309 5,553,927
Gauteng   16,984,812 21,936,803 28,364,205 32,503,874 47,243,497
Eastern Cape   1,646,328 1,906,851 2,063,872 2,734,658 2,236,079
KwaZulu   1,312,208 872,724 1,240,146 1,240,146 2,625,446
Northern Cape   3,830,277 11,148,557 12,588,793 12,588,793 21,509,509
Mpumalanga   4,509 14,815 1,161,839 12,157 11946
Limpopo   140,723 272,771 384,518 344,794 364,073
National   2,417,061 3,709,706 3,578,255 5,787,397 6,226,928

 

In this financial year, we had an improvement in the growth of SACCOs. The SACCO members grew by 44% from 14 741 to 26 164. Most of the new SACCOs were from the KZN Province. Loans also grew by 35% from R 66.6 million to 89.9 million.

12.0 SERVICES

SACCOL services to SACCO have not changed. SACCOL provides to its members a range of technical, training and capacity building services as well as practical tools to run and operate SACCOs. The SACCOL Development officers and Training Officer primarily carry out this work.

12.1 Board of Director Training

The SACCOL made an itinerary to train SACCOs during the year on on SACCOL modules. This was also to assist in the compliance with requirements of the Bank Seta. SACCOs did not respond as expected. We now need SACCOs to advise us on which method will suit them because training is crucial.

12.2 National and International Training workshops

SACCOL again this year did not attend any international workshop because of financial constraints.

13.0 VALUE ADDED SERVICES

13.1 Cubis

Cubis is still the primary software our SACCOs are using. There are now only 6 SACCOs using the software because most of them are not able to pay the licence fee. In the past years SACCOL used to pay for them and try and recover the money from them.

13.2 Credit Life Scheme

SACCOs decided to stop paying premiums for credit life. Some took those decisions when SACCOL was not succeeding in meeting claim demands. SACCOL is looking at outsourcing credit life from insurance organisations externally.

As at the end of May 2008 the fund looks as follows

14.0 PROGRESS ON RESOLUTIONS MADE IN LAST AGM.

Action Progress
Open the SACCOL head-office in Johannesburg by 2010 SACCOL has successfully opened an office in Braamfontein in Johannesburg. The offices are at the Braamfontain Center in Jorissen Street
  AGM resolved that SACCOs must now deal directly with Fern. Out of the 8 SACCOs that were using Cubis, only 4 SACCOs managed to register with FERN. (Alrode, Sibanye, Ditsobotla and Nehawu SACCO. ‘Masihlume’, Tsiya and Mayibuye are using it but they are not paying for the license and Boikago stopped.
Communicate the decision of the AGM to CUBIS With Best insurance, SACCOs are now working directly with The Best Insurance. A few have moved over to Old Mutual
  Audited financial statements were corrected and they will be signed together with the 2010 financial statements.
And Funeral Best.  
Make corrections in the Audited Statements for Final Approval  
Finalise the co-op banking movement document based on discussion at the AGM (see Special Resolution on this) Registration documents for the CFF as a secondary co-operative with the CBDA. A business plan and constitution was drawn and sent.
Prepare and Submit comments on the Amendments to the Co-op Act of 2005 Comments for the amendment of the Act were sent to the DTI
Consult with key players – the trade union movement, the CDBA, co-operative financial institutions outside SACCOL and other relevant organisations to discuss co-op bank movement strategy. We have had a few consultation meetings with the CBDA who have approved SACCOL as a service provider.
Establish Task Team(s) to work on constitution, registration and launch of the new national co-operative banking organisation. FSCs. SACCOL office proposes fees based on membership only at R 20 per member. The FSC can easily charge that to members as yearly fees. Further proposal that in the first year they don’t pay.
Establish Task Team comprised of co-op bank candidates established to work of formation of a secondary co-operative bank, as a division of a national co-op banking organisation. This will include work on ICT support. A task team to work on the constitution never met. SACCOL staff worked on the constitution
  Meetings were made to listen to vendors who wanted to develop a banking platform for SACCOL. The board resolved that SACCOL must work with Iproplex and Direct transact. Both will be presenting in the next AGM
Finalise Business planning process for the national co-op banking organisation, for a secondary co-op bank, based on movement building strategy. Business Plan (s) to be completed by Dec 2009. A business plan was sent to CBDA for CFF to be registered as a secondary co-operative bank. A response was received and SACCOL office is attending to the concerns.
Ensure all SACCOs organised according to the Co-operatives Act of 2005.  
Ensure all SACCOs meeting the criteria has registered with Co-operatives Banks Act All SACCOs that have applied for being co-operative banks have registered under the co-operative act of 2005
  All SACCOs that have applied to be co-operative banks are now being assessed by the CBDA
Consult with co-op financial institutions outside SACCOL in the provinces – discuss movement-building strategy and receives updates on the processes towards the launch. FSC have expressed interest in joining SACCOL. We need to decide on the fees and dues and make visitations to them
Consult with key players, informing them of the processes towards the launch of the national organisation;  
  This activity will be done once the national organisation has been restructured and repositioned.
Implement of the business plan(s), engaging funding sources;  
 
Ensure on-going communication with members on the process towards the launch

SACCOL to decide on possible fees and dues for A fee structure based on the membership is proposed for FSC and similar organisations. The fee for each primary sacco member will be R 20 per year. The SACCO can charge that as a year subscription for the member and then pass it on to SACCOL as its fees and dues for the year.
  This process has not commenced
  The launch will happen once the institution has been registered
Prepare and finalise funding programme for an Institute  
Launch the Institute by 2010  
Facilitate the formation of consumer co-op for all SACCO members as part of UYF Enterprise Loan Programme Questionnaires were sent to SACCOs and the response was not good. This process was stalled.
Work towards the launch of the co-op by 2010  
  The launch will happen as soon as CFF get registered as a secondary co-operative and a new positioning of SACCOL has been established
Prepare the concept and business plan for the Investment Trust There was no progress on this
 
Launch the Trust by 2009

 

14.0 CONCLUSION

SACCOs need to understand that SACCOL gets its strength from their strength. If SACCOs are week SACCOL can not be strong. As we move towards the procurement of banking technology, its viability will depend a lot on significant growth of the membership and continuous use of the technology. This year we saw a significant growth in the membership but that need to translate to financial activity and sustainability of the movement. The co-operative Banks Act promotes financial inclusion and SACCOs should also work tirelessly to achieve financial independence and inclusion.