MULENGA MUSONDA writes
GOVERNMENT has expressed happiness with the move by Madison Life Insurance to partner with three registered village banking cooperatives in Southern Province.
Provincial Cooperative Office representative in the Ministry of Commerce and Trade Yubiya Imwiko said the initiative marked a milestone in the development of the cooperative movement, agriculture in Zambia.
Mr Imwiko was speaking at the signing of three memorandums of understanding (MoUs) between Madison Life Insurance and Choma, Monze and Namwala Savings and Credit Cooperatives (SACCO) in Choma recently.
He said the partnership would help cooperatives greatly, as members would be guaranteed of security of the products offered through insurance.
And Madison General Manager- corporate business Patrick Mumba who signed on behalf of his company said in partnership with the Government, the Credit Life Assurance and Funeral Benefit Insurance Schemes would cover the SACCOS members who had gotten loans from the cooperatives.
“In the event of death, critical illness or being disabled, the outstanding loan shall be recovered from Madison Life Insurance Company by your SACCOS and it means you will remain free of debt and your families will never be followed,” he said
He said in case of death of the borrower, Madison would repay the loan to SACCOS within five days of submitting the required documents as third life assurance policy by members would act as collateral for the loans.
And in an exclusive interview, Choma Savings and Credit Cooperatives vice chairperson Philip Munkombwe said the partnership would go a long way in helping farmers access to finances for improving their livelihoods.
He said the cooperative which stretched its membership from Batoka all the way to Livingstone, had grown from 149 in 2016 when it was formed to over 2,000 and by 2020 membership was likely to exceed to over 5000.
Mr Munkombwe appealed to village banking groups especially women to formalize their groups as that would make their money secure as it would be kept in financial institutions instead of individuals.