CHAPTER TWO
Stage 9: Evaluate change outcomes
3.4 Company Analysis
incapacitation, emigration, on reaching the age of fifty irrespective of employment status to the survivors in case of contributor's death. There are ongoing negotiations regarding converting this fund into a pension scheme which was a recommendation by the ILO. Further market research has been carried out on how fund members may utilize their contributions as collateral for business loans (Internet, 22).
3.3.2.7 Swaziland Stock Exchange (SSXX)
The Stock exchange in Swaziland is without particular impact since most of the Swazi citizens are still unfamiliar with its operations. This is so particularly so with the target market of Cooperatives, which are predominantly rural.
3.4.2 T h e Cooperative's Principles and Practices
SASCCO is guided by the Cooperatives principles and practices of ICA and the SNCDP.
3.4.3 Type of Cooperative
SASCCO is a Savings and Credit Cooperative which plays both a local and an international representational role for member cooperatives in Swaziland. It aims at promoting aid among business entrepreneurs and employees through Saccos.
3.4.4 SASCCO's Policy
SASCCO's policy is to ensure creation of wealth for cooperative members to help alleviate poverty and to contribute to the overall development of the Swazi economy. The organization believes that a policy should be a powerful management tool that can shape the whole organization and should promote consistency and common goals, provide answers and assist with decision- making. It further believes that policies save time and prevent Sacco board from having to make the same decision many times, that is, cooperatives should not be formed by the government but the people.
3.4.5 SASCCO's By-laws (Summarized)
The Cooperative's operations are guided by by-laws which have been summarized as:
• Objectives and Powers: To assist actively in the development of effective operation of Saccos in the Kingdom of Swaziland and to promote good public relations on behalf of the societies with the general public, the government, private sector, voluntary organizations, national and international cooperative organizations.
• Membership: The membership of the association consists of registered Saccos in the Kingdom.
• Funds: The funds of the association consist of affiliation fees of one hundred Emalangeni (El 00 .00) per member.
• Management: The governing body of the association consist the Board of Directors to whom the general direction and management of its affairs, funds and records are entrusted.
• Election of the board of directors: The directors of the board, with the exception of the managing director, shall be elected for three years at the AGM by secret ballot by the
voting delegates appointed under article III Subsection 3.3.1 of the by-laws and thereafter one-third shall retire annually. They will be eligible for re-election.
3.4.6 SASCCO's View in Forming a Cooperative Bank
New product development and enhanced lending mechanisms, together with future R & D departments will be some of the major roles of the Cooperative Bank and SASCCO in general.
This will be a project that will seek to increase service delivery and add value to all members of primary cooperatives. Societies experiencing liquidity problems may borrow from this fund through regular savings by member affiliates. Sources of funds are made up mainly of the annual subscriptions or dues paid by Savings and Credit Cooperatives, administration charges from the Risk Management Programme and profit from the printing and selling of standardized bookkeeping stationery for Cooperative societies.
Other aspects regarding Formation of the Cooperative Bank (summarized):
• The Cooperative dream: Self help concept; one stop shop; Influence in pricing.
• Why form bank? Sacco credit is constrained by liquidity; Sustainability of superior service delivery; Reduced/elimination of external dependency.
• Registration constraints: Bank must be lawful; The Act of 1964 allows registration constraints over cooperatives; CBS requirements include; Earnings prospects; Ability of management; Adequacy of capital.
• Registration constraints: Adequacy of liquidity; Services: Training of employees; Safety and soundness; Under the CBS policy 1:10 "The CBS principal concerns are to ensure that any new entrant to Swaziland's financial sector should be adequately capitalized, well managed, properly supervised, competitive and responsive to local needs; Bank must first be registered as a "Secondary Cooperative"; Be licensed to operate as a "bank" by the CBS.
• Envisaged Cooperative Bank: Will incorporate SASCCO, CCU, Individual Saccos and Sacco members.
3.4.7 SASCCO's Strategic and Financial Management Profile
SASCCO's strategic and financial Management view are summarized in Table 3.4
Table 3.4: Strategic and Financial Objectives for SASCCO
Financial Objectives
Liquidity is of primary importance survival for the Cooperative Lower costs
Growth in earnings
Reduce dividends intended but take advantage of expansionary projects for more growth within the
Cooperative
Bigger profit margins
Higher revenues through improved customer service
Economic value-added performance (EVA)
Adequate cash flows to pay
SASCCO's employees incentives and rewards
Attractive and sustainable increases in market value added (MVA) Striving to have stable earnings for the Cooperative during periods of recession
Strategic Objectives
Bigger market share by offering incentives to Cooperative members
Quick response to customer preferences Higher product quality than rivals Lower costs relative to key rivals
More focused and attractive product line than rivals:
more services but fewer cost tiers
Prompt service and always available when needed Superior customer service through continuous improvement of products
Introduce better internet sales than rivals
Stronger global relationships with the rest of the markets Recognition as leader in product innovation to meet members demands
High levels of customer satisfaction (approximately above 80%}
Source: By researcher
The Cooperative has also formed strategic alliances with International Cooperative Alliance (ICA), World Council of Credit Unions WOCCU, African Confederation of Cooperative Savings and Credit Association (ACOSSCA) and Credit Union National Association (CUNA). It has further, formed strong relationship, partnerships with Central Cooperative Union (CCU), the local umbrella Cooperative for agricultural Cooperatives in Swaziland. The strategies have been particularly formed to compete with rivals to lead the financial industry in the future and build strong global presence with the rest of the world.