The National Cooperative Credit Union Association (NaCCUA-SL) on Saturday 20 April 2024 held its 10th Annual General Meeting at the Freetown City Council Auditorium on Lightfoot Boston Street in Freetown on the theme ‘Promoting Inclusive Growth for a Sustainable Credit Union Movement in Sierra Leone.’
In his statement, the Ambassador of Ireland to Sierra Leone, Mr. Fitzpatrick said the Irish League of Credit Unions and the Irish Government are supporting CUs in Sierra Leone, that out of the 5.5 million population in Ireland, 3. 5 million or 70 percent are members of CUs which underscores that CUs are very important in the country.
He continued that 60 years ago, Ireland learnt about CUs from Canada that they want to replicate in Sierra Leone disclosing that there are between 6-7 million Credit Union members worldwide and reiterated that they want to help CUs in Sierra Leone grow.
According to the Irish Ambassador, there is need for access to credit facilities as between 30-35 percent interest charged by MFIs and banks is high affirming the need for promoting inclusive growth for a sustainable credit union Movement in Sierra Leone and that has to go with effective regulations.
The General Manager of the Irish League of Credit Unions Foundation (ILCUF) Limited in Sierra Leone, Mr. Solomon Mwongyere disclosed that NaCCUA-SL staff has increased from 1-3, that with support from the Irish AID and ILCUF they are building the capacity and providing technical support to NaCCUA-SL which he assured would continue.
He also highlighted that regulations of CUs is a major challenge in the country, that since November last year, not much has been done in that direction underlining that this year’s theme for the AGM resonates well with the Step-up Project that prioritizes growth and commitment.
Mr. Solomon Mwongyere also noted that although CUs are growing but at a slow pace and gave as example 15-20,000 new members in other countries while in Sierra Leone it’s less than 2,000 members yearly which he attributed to the lack of commitment from leaders and staff asserting that CUs are a business.
He also noted that CUs are aligned to Sierra Leone’s Mid-Term National Development Plan but observed that there is no one talking about CUs the reason they have recruited a Marketing and Communications Officer for NaCCUA-SL to make CUs more visible.
The ILCUF General Manager continued that four volunteers from Ireland have at the end of their recent visit to Sierra Leone recommended that some CUs are not doing well, informed that the current project is ending in October this year but that they have submitted another five-year project proposal to Ireland with three main objectives and commended the government of Ireland for providing 70 percent support to CUs in Sierra Leone.
Earlier in his opening statement, the chairman of NaCCUS-SL, Mr. Ibrahim Sorie Bangura underscored the importance of accountability in the running of CUs in the country and congratulated NaCCUA-SL for organizing the first AGM this year to discuss critical issues recalling that last year he attended 14 AGMs during which women were elected into strategic positions.
According to Mr. Bangura, CUs are now democratic and reiterated the need for them to be accountable to their members disclosing that they have engaged stakeholders to review the obsolete 1977 Cooperative Act and that CUs are the most effective cooperative in the country.
The representative of the Bank of Sierra Leone, In charge of other Financial Services, Mr. Kingston Miller, disclosed that in spite of the challenges in 2023, NaCCUA-SL navigated them, that CUs have grown to become key players in the financial sector but noted that there is still room for improvement.
He further asserted that CUs are member-based organisations and that the program, Talk Your Mind, initiated by NaCCUA-SL for members to make comments on critical issues affecting CUs, is laudable.
In his keynote address, the Country Representative of DSIK, Mr. Babou Carr Jeng point out that he is encouraged by developments in CUs citing timely submission of reports, stressed that AGMs are very important as an annual requirement for CUs and appealed to NaCCUA-SL to take the criticisms made by members in good faith to chart a brighter future for CUs in Sierra Leone that would help them to become sustainable.
He further noted that CUs need strong leaders, called for commitment to responsibilities as well as marketing of products and services and to build the capacity of people.
Mr. Babou Carr Jeng also pointed out that the world is dynamic and that CUs need to address a lot of issues if they are to grow in addition to building structures that support sustainability warning that donors would not support them forever.
The General Manager of NaCCUA-SL, Mr. Peter Banting revealed that since they assumed office in June 2022, they have made significant strides in navigating challenges and seizing opportunities for the growth and sustainability of CUs in Sierra Leone.
Mr. Peter Banting further revealed that shares increased by 44 percent (from 2,569,000) Leones to 3,700.000 Leones); savings by 27 percent (from 15,314,000 Leones to 19,599.000 Leones); loans by 14 percent (from 17,736,000 Leones to 20, 071,000 Leones) while total assets increased by 23 percent from 24,365,000 Leones to 30, 042,000 Leones.
The General Manager added that their proactive approach to addressing the evolving landscape of the financial services sector has enabled NaCCUA-SL to support CUs in the country effectively, thus contributing to their mission of promoting inclusive growth.
Mr. Banting went on to enlighten that their financial performance in 2023 reflects responsible fiscal management and notable growth across key metrics noting that liquidity ratio stood at 161.23 percent exceeding the standard of 20 percent demonstrating their strong financial position and ability to meet short-term obligations.
The General Manager continued that NaCCUA-SL’s operational self-sufficiency, while below the minimum requirement, shows achievement of their strategic plan which states that by the end of 2024, NaCCUA-SL would have reached 25 percent operational self-sufficiency but that however they are to reach it at 40.94 percent.
According to the General Manager, NaCCUA-SL performance over the past year has been significant thanks to the solid support of DSIK and ILCUF Limited and that their transformation has enabled them to reach across the country engaging with registered and prospective CUs.
Mr. Osman Conteh, Deputy Development Secretary in the Ministry of Planning and Economic Development disclosed that they are taking the lead to organize a Civil Service CU, observed that the country’s Mid-Term National Development Plan launched in January this year has as priorities job creation, that government is serious about improving the lives of the citizens due to the high level of poverty that can be addressed by CUs and that they are putting modalities in place to establish CUs for civil servants due to their low interest rates and non-requirement for collateral.
Another dignitary who made a statement included the Deputy Registrar of Cooperatives, Mr. Suliaman Bangura.
Highlights of the well-attended AGM were presentations of the annual report, Audited Report by the auditing firm, Peter Kamaray and Co., confirmation of one Board Member, appointment of election officials and elections.
