Although SACCOs face many challenges, there are solutions to be found for each, which if followed, will see the SACCOs achieving financial success. This is part three and the final part of the “Challenges faced by Saccos” series.
As in any financial institution, records are important. They provide transparency, accountability, and visibility. Every SACCO has to inspire trust within and without. Their members have to be assured of their money’s safety, stability, and growth. Similarly, all the stakeholders involved in the development of a SACCO have to access clear records of how the SACCO has been running. Having detailed information makes report-generation easy. SACCOs should ensure every detail has been recorded, to ensure growth.
Forgery and Fraud
Financial fraud is the number one problem in all financial institutions. This not only creates loss of revenue in SACCOs, but also often has an impact on its image and reputation, which can lead to distrust among members.
To discourage this, fraud and forgery must be treated with the severity which they deserve. Employees of the Sacco must be required to fill a code of conduct, with top officials being required to reveal their origin of income at the end of the year. Supervisory boards must carry out their supervision responsibilities appropriately. The Management Board must likewise be required to declare their wealth every year.
Though SACCOs face many challenges, their positive impact on African societies speak to the need to develop and grow them, which will in turn lead to a positive savings culture, and development within our societies.