Ministry urges SACCOS to improve leadership, management structures

Ministry urges SACCOS to improve leadership, management structures

Fri Oct 24, 2014

Good leadership and management structures are vital for the development of Cooperative Societies and youth SACCOS groups if they are to qualify for loans.

 

 

 

Speaking to press earlier this week during his tour of the Fair Deal Auto (Pvt) Limited in Dar es Salaam, Deputy Minister for Agriculture, Food Security and Cooperatives Godfrey Zambi said for companies and financial institutions to gain trust in a SACCOS, management and leadership must be concrete and well organised.

 

 

 

Fair Deal Auto (Pvt) Limited offers loans to Cooperative Societies and youth SACCOS groups in form of tricycles (Bajaj) and Motorcycles (Pikipiki) and in his comment   Zambi said the tricycles and motorcycles are production tools. 

 

 

 

“They provide employment for the youth and that way support government efforts to reduce unemployment,” he said.

 

 

 

He also announced that the government is working on reforming cooperative societies to ensure they are much more effective and efficient.

 

 

 

“For a long time these Cooperative Societies have been governed by selfish and corrupt leaders…after the 2003 Act no 6, we have tightened punishment including two years imprisonment or paying 5million fine or both penalties,” he said.

 

 

 

“There was also a very big problem of political interference associated with these cooperative societies,” admitted the deputy minister.

 

 

 

“We have now removed politicians from cooperative societies because they were also contributing to their poor performance,” he said.

 

 

 

Sales manager for Fair Deal Auto (Pvt) Limited Khalid Saifullah and Isarel Gadeil said the company has already loaned motorcycles and Bajaj to 30 SACCOS and more than 10 cooperative societies.

 

 

 

“Our aim is to cover the whole country so that more people and the youth in particular can benefit,” he said.

SOURCE: IPPMEDIA

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