Petty traders longing for Cooperative Bank

Petty traders, commonly known as `VIBINDO` have mounted serious campaign to mobilize members with an objective to transform their Savings and Credit Cooperative Organization (SACCO) into a full fledged Cooperative Bank.

The current members` mobilization programme aims at acquiring 2,000 new members at the end of this year a situation which would put the SACCO at better place to realize its dreams of transform itself into a cooperative bank.

In an interview with the Chairman of the SACCO Mored Allen said preparations were at an advanced stage to make sure the official launch of the SACCO expected to take place soon after the Holly month of `Ramadhan` succeeded.

``We have tentatively contacted the high government officials to officiate out SACCO but it seems the officials will be ready after the coming holly month of Ramadhan `` Allen said.

Among the strategies that the members have adopted to quicken transformation process of the SACCO into a Bank was the recent amendment of the constitution.

The VIBINDO SACCO constitution was recently amended to allow among other things member from other sectors of the Tanzania society wishing to become members of the SACCO to qualify.

With its office situation at Buguruni Market, Allen said since the SACCO started offering saving and credit services early this year, the number of incoming members has been increased at an average between 5 and 10 a day.

Responding to the question why they had targeted 2000 members by the end of this year, Allen said that his SACCO want to acquire sufficient members enough to buy shares which could enhance it attain statutory capital for bank to start.

He said the preliminary calculations showed that by having 2000 committed members could easily enhance transformation of the SACCO into a bank by selling shares to the members.

Currently, the requirement for new members is entrance fee of 5,000/-, initial saving of 1,000/-, buy at least one share at 2,000/-, and two passport size pictures for identification.

The SACCO which also offers some banking services, provides loan services to the customers who have stayed in the SACCO for more than three months and paid all due contributions.

In order to qualify for loan application, customer must in addition to paying all due contributions have 40 percent of the total loan sought from the SACCO.

According to Allen, the SACCO provide loans for different purposes include agricultural loans, husbandry for commercial purposes, Salaried loans, loans for petty traders, emergency loans, and loans designed for women groups.

``We are determined to transform this SACCO into a Bank because there is no other way or venue that petty traders` financial problems can be addressed except through SACCOs`` Allen underlined.

The formation and operationalisation of the petty traders` SACCO has come few months after the government gave directive to regional administrators to assist people form their own SACCOs to address their financial and loans acquisitions\' difficulties.

SOURCE: Guardian