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, headed by Secretary to the Cabinet Rowland Msiska in the interim, would see public sector workers buy shares from the SACCO.
“Government has mandated our company to run the scheme in the interim up to the time the first Annual Delegates Meeting will be held,” Public Service Micro Finance Company Chief Executive Officer Mubanga Mwiko said.
Mr. Mwiko said the shares in the SACCO would remain beneficial even after retirement from Government/ Public Service and or in case of a demise of a shareholder, as children could take over.
The Chief Executive Officer was speaking when he made a presentation to the diplomatic staff at the Zambian Mission in New Delhi, India.
“Membership of the SACCO is voluntary and members should buy a minimum of 1500 shares valued at K3,” he said.
Mr. Mwiko said the scheme would give public service employees access to cheaper loans from the scheme without any collateral.
“Members by virture of owning shares in the SACCO will also be entitled to a 13th cheque at the end of the year arising from dividends declared,” he said.
Mr. Mwiko was confident that the SACCO in Zambia would succeed because of due diligence which had been carried out before the implementation.
“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,” he said.
And Zambia’s High Commissioner to India Judith Kapijimpanga said Government deserved praise for the several initiatives that encouraged public service employees to develop a culture of saving and also prepare for retirement.
“The motto by PS-SACCO “Creating our Future Now” is well suited with the intention by government to facilitate the creation of the SACCO,” she said.
Mrs. Kapijimpanga had since urged the diplomatic staff to take advantage of the innovation.
This is contained in a statement made available by First Secretary Press and Tourism at the Zambian Mission in New Delhi, India, Bangwe Naviley.