Rubavu Cojad set for merger with Umurenge Sacco

RUBAVU - The youth in Rubavu have welcomed a government proposal to merge the local branch of The Youth Cooperative for Development (COJAD), a special cooperative for the youth with the grassroots savings mobilization scheme known as Umurenge Sacco in the district. The merger seeks to cut costs and improve efficiency to operations undertaken by members of the new body, according to govt officials. Members of COJAD are upbeat about the merger, hoping to receive long term loans with improved conditions. “We were getting loans on a short term basis of five months and not exceeding Rwf500, 000 which is not very helpful,” said Alloys Nsanzimana, the president of COJAD in Rubavu. The cooperative that has over 900 members will share its dividends among the current shareholders before setting the ball rolling for the merger while all the assets and liabilities of the organization will be transferred to the new entity. “The cooperative is for the youths encouraging them to adhere to the culture of saving which is still a challenge in our society,” added Nsanzimana. Last year, the cooperative made a net profit of Rwf3.7 million while the total deposit reached Rwf22.2 million and Rwf29.1 million was given out in credit. However, the leadership urged all members to make their obligatory contribution to the cooperative if they want it to succeed. “Only 581 have so far paid their for their shares while over 300 have not and this is hampering the work of the cooperative,” explained Nsanzimana. Deogratius Bizimana representing Rwanda Cooperative Agency encouraged the youth to take advantage of the new arrangement to acquire loans since it does not require collateral as it is the case in most financial institutions. Ends