Government has facilitated for the creation of a Public Service Savings and Credit Cooperative (PS -SACCO) to encourage a culture of saving among public service employees drawing from the inspiration of an informal scheme popularly known as “ Ichilimba.”
The scheme corporate governance structure which is headed by Secretary to the Cabinet Rowland Msiska in the interim, will see public sector workers buy shares from the SACCO.
Public Service Micro Finance Company Chief Executive Officer Mubanga Mwiko says his company has been mandated to run the scheme in the interim up to the time the first Annual Delegates Meeting will be held.
“The shares in the SACCO remain beneficial even after retirement from Government/ Public Service and or in case of a demise of a shareholder, children can take over, “ he said.
The Chief Executive Officer was speaking when he made a presentation to the diplomatic staff at the Zambian Mission in New Delhi, India.
Mr. Mwiko is confident that the SACCO in Zambia will succeed because of due diligence which has been carried out before the implementation.
He says a similar scheme has worked very well in Countries such as Kenya where the SACCO has grown to an extent of investing heavily in real estate.
And Zambia’s High Commissioner to India Judith Kapijimpanga noted that Government deserves praise for the several initiatives that encourage public service employees to develop a culture of saving and also prepare for retirement.
She also said the motto by PS-SACCO “Creating our Future Now” was well suited with the intention by government to facilitate the creation of the SACCO.
Mrs. Kapijimpanga has since urged the diplomatic staff to take advantage of the innovation.
Membership of the SACCO is voluntary adding that members should buy a minimum of one thousand five hundred shares valued at three Kwacha.
The scheme will give public service employees access to cheaper loans from the scheme without any collateral.
Members by virtue of owning shares in the SACCO will also be entitled to a thirteen cheque at the end of the year arising from dividends declared.
This is contained in a statement made available to ZANIS by First Secretary Press and Tourism Bangwe Naviley.