Madison, Wis. - South Africa’s government has passed the Cooperatives Banks Act, marking the first financial cooperative-specific legislation to be passed in English-speaking Africa, according to the World Council, which assisted the Savings and Credit Co-operative League (SACCOL) of South Africa in drafting and reviewing the new legislation. Musa Mbingo, general manager of SACCOL, sees the formal recognition of financial cooperatives as a way to deepen and strengthen outreach to South Africa’s poor.
“In terms of poverty, South Africa’s numbers are very high. There are many unbanked people that can’t enter the mainstream banking system,” Mbingo told the World Council. “Cooperatives are the solution to provide financial services. In the fight for poverty alleviation, [the legislation] is a big step.”
Savings and credit co-operatives (SACCOs, credit unions) had previously been regulated under an “exemption” to the Banking Act, which required deposit-taking cooperative financial institutions to join a self-regulatory organization. Most SACCOs and financial cooperatives affiliated with SACCOL, a WOCCU member.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
