Credit and Saving Society (CSS) Zigama, a financial cooperative whose core membership is from military and police personnel and affiliated organs has said that its assets will grow by 34.7 percent next year.

In its business plan for the year 2010, CSS projects that the growth in assets will shoot to Rwf53.2 billion, up from Rwf39.5 billion that was projected in this financial year.  

Zigama attributes this growth to the international and national prudential guidelines for savings and credit institutions, and the general economic environment.

The financial cooperative that was established in 1997 provides a variety of products such as savings, loans, and account management services customised to individual needs like term deposit accounts, regular savings accounts and programmed accounts.

"We work to improve the welfare of our members through empowering them economically and creating value on a sustainable basis,” James Ndahiro the President of CSS said.

The financial institution, also projects a growth in deposits that will propel a 35 percent growth on its loan portfolio during the next financial year. This year, Zigama’s loan portfolio is expected to grow from Rfw27 billion to Rwf41 billion.

"This year we were worried about the financial crisis but it never hit us directly, that is why we did not increase our interest rates,” explained Ndahiro.

The bank is also engaged in awareness campaigns to promote a saving culture for its members with net savings projected at Rwf80 million per month by the end of 2010. It also projects that its compulsory savings will reach Rwf200 million per month.

The military cooperative has spread out its wings throughout the country establishing 14 branches and employing 136 people.

The cooperative said it will spend a tune of Rwf586.9 million on investment with focus on construction, equipment acquisition, communication, ATM machines, generators and electronic filing among others.

In order to achieve the set projections, there are major goals that have been put in place and these include improving services, enhancing accountability and transparency and improving application internal processes and controls.

According to next year’s business plan, key strategies for general improvement have been laid and these include mobilization and education of members, devising investment alternatives and prudent loan assessment and disbursement.

However, the cooperative says it is challenged with limited awareness among members, vulnerable equity, and low members income levels

Zigama gets its funds from various sources including the presidential grant which constitutes 33.3 percent, member’s contribution which is 10.44 percent and retained income contributing 32.3 percent among others.

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