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FOCUS ON COVID-19
SACCOS urged to
PROVIDE SERVICES
ONLINE during
pandemic
By Ngumbo Njoroge Dr Brian Branch, President WOCCU
SACCOs have been told to embrace essential services so that they can He added that the Union has also
digitization to provide services to continue serving members during requested member SACCOs to release
their members through mobile lockdowns. staff to work from home and only retain
and the internet during the ongoing key staff that can be on rotational basis.
global Coronavirus pandemic. “It is important that as governments
start to move towards restrictions According to Cambridge Mdlalose,
This, according to Dr Brian Branch, on operations, move to lockdowns, ACCOSCA Chairman, stakeholders need
president of the World Council of Credit telling people to stay at home, telling to have conversation on how they are
Unions (WOCCU), will enable SACCOs businesses to close, that SACCOs going to mitigate the effects. Regulators
to provide services at a time when communicate to the government that might have to practice flexibility and
members are critically in need. they should be identified as essential pragmatism in updating the prudential
businesses.” framework.
“When examining how SACCOs respond
to this pandemic, it has never been this The financial impact of the pandemic, He said SACCOs need to exercise
obvious to us how important digitization Dr Branch said, will see increased judgment in applying IFRS9,
is. The ability of financial institutions to provisions costs, decreased liquidity as distinguishing between borrowers who
provide remote service delivery through loans default and savings withdrawals are temporarily vulnerable because
online banking,” he said. increase as well as decreased income of the crisis but who will be able to
on loan portfolio. cope in the long term. SACCOs need to
Speaking to Credit Union leaders during consider what kind of relief they need
a Webinar organized by the African “We are going to see liquidity start to during the crisis.
Confederation of Cooperative Savings fall as people become delinquent and
and Credit Association (ACCOSCA), Dr begin to default on loans and as people “Leaders and members urged to uphold
Branch said there has been an increase increase their withdrawals in order to the regulations imposed by governments
in the number of members accessing access their savings to get them through and the World Health Organization.”
their SACCO services through mobile the crisis,” he noted.
channels around the world. The new WOCCU Country Coordinator
KUSCCO Group Managing Director in Kenya, Mr. Mark Matabi, has pointed
“Minimizing interaction is contradiction Mr George Ototo said there is need that WOCCU is currently implementing
to us as co-operators. We are about for constant communication with USAID Cooperative Development
coming together and helping each other members on how to navigate through Program (CDP) dubbed ‘Technology and
but this is a time when to protect the the tough times. Innovation for Financial Inclusion’ (TIFI);
safety and health of both our employees which through KUSCCO, is supporting
and members, we have to maintain He said the Union urged member SACCOs in the country to go digital.
physical distance,” Dr Branch said. SACCOs to continuously talk to their “TIFI project will not have been better
members on reduced access to the implemented than in such a time as
He noted that not all SACCOs can banking halls. this when COVID-19 pandemic has
provide services through digital means disrupted SACCO operations and
or prepared for the situation, adding “We have requested that they use virtual reinforced the course for SACCO
that SACCOs and credit unions around transactions through mobile to service digitization. SACCO digitization is no
the world are taking measures to limit their members and we have also seen longer a luxury but a necessity. We,
crowding in their waiting areas. that more transactions have been therefore, urge SACCOs to exploit
migrated to the online platforms. We technology opportunities available.
He added that there is need for also requested them to focus on short WOCCU is available to offer insights on
government to classify SACCOs as term loans,” Mr Ototo said. features of best technology solutions”
Said Mr. Matabi
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