At Kilolo

Kilolo is about an hour from Iringa.  They have heard about the AMCOS from listening to Radio Furaha and were eager to hear about it.  They had been organized as a local group for lending to each other, and have only been registered as an Iringa Hope SACCOS for one year, since June 12, 2017.  There are seven officers and board members and the Pastor of the congregation present for the meeting.  The Pastor has been a strong supporter of the SACCOS and, after hearing about the AMCOS was very interested in hearing more about it. 

When the Iringa Hope SACCOS started one year ago, it had 19 members.  It now has 43 members.  The members are engaged in farming, fishing or in small businesses. 

The SACCOS has local loan capital of TZS 653,000 (or about $300).  They borrowed another TZS 14,790,000 (or about $6,500) from the Joint SACCOS.  This combined amount of loan capital was loaned to 24 members.  This resulted total loans of TZS 15,443,000 (or about $284 per loan).  The interest that this SACCOS has been charging is 2% per month.

Venance Msigala presented a discussion of how the AMCOS would work with the SACCOS.  There were a number of very good questions asked.  Pastor Lubava stated that he likes the idea of an AMCOS.  He said that the planting season is coming soon, and asked how their group could purchase supplies for the planting season.  Peter Silayo said that their SACCOS could purchase supplies from the Joint AMCOS.

A question was asked about what the price difference would be between the AMCOS and distributors.  We responded that the AMCOS prices should be better that the prices from the distributors, because the Joint AMCOS would be purchasing supplies direct from the suppliers.  In addition to the reasonable prices, AMCOS members would also be receiving better quality inputs and would be receiving the inputs on time for planting season. 

Venance passed out a form that requested a forecast of farming input supplies that would be needed by AMCOS members.  This form is important because the Joint AMCOS will need to know the quantity of supplies that will need to be ordered from suppliers.  A question was asked why the form only listed one fertilizer supplier’s products?  We responded that Yara Fertilizer was the fertilizer company that most members preferred.  However if there were another fertilizer supplier that this group preferred, we would also include that company’s products in the Joint AMCOS orders.  However we may not be able to obtain a significant price discount for small quantities. 

Another question was asked regarding bean seeds.  Farmers have stated that the bean seeds are not always available at planting time.  So farmers have planted the seed left over from last year’s harvest. As a result, yields have been decreasing.  This question was also brought up in other meetings.  We responded that we would investigate other sources of bean seeds for AMCOS members. 

Another question was asked about the interest that would be charged for loans from the SACCOS for inputs.  We responded that the interest on loans from the SACCOS to purchase farming inputs should be the same as that charged by the SACCOS for any other business purposes.

A question was then asked about when loans for farming inputs to be purchased from the AMCOS would need to be repaid.  We responded that these loans would need to be repaid on a schedule that was similar to any other loans from the SACCOS.  They would need to be repaid after the harvest, just like any other loan for the purchase of farming inputs.

A question was asked about the requirements for when an application to the Joint AMCOS could be made.  We explained the requirements for an entrance fee and for the purchase of shares by the members.  We also stated that the group would need to have a vote to form an AMCOS by at least twenty members and then the AMCOS group would need to request an officer from the Cooperatives Commission from the Kilolo district to come to meet with the group and give them training.  The Chairman of the SACCOS responded that they are planning to hold a meeting by the end of the month to vote to start the process.

All of the questions were answered so we then held two interviews with SACCOS members.  Our fist interview was with Mariam Lubava.  Mariam is 22 years old and single.  She was a member of the SACCOS when it was registered, one year ago.  She was also a member of the local SACCOS group for two years before they formed the Iringa Hope SACCOS.  She is now the Treasurer for the SACCOS.

Mariam owns a shop where she sells cereal products such as rice and maize, cooking oils, sugar and other cooking supplies.  She purchases these supplies in Iringa shops and resells the products in her Kilolo shop to local customers. 

Her first loan from the local SACCOS was for TZS 300,000 to purchase supplies to sell in her shop.  Her income from the loan was TZS 400,000 for a profit after repaying the loan of TZS 100,000. 

Her second loan was for TZS 300,000 again.  Her income from the shop was TZS 470,000 for a profit after repaying the loan of TZS 170,000. 

Her third loan, this time from the Iringa Hope SACCOS was for TZS 600,000.  In addition she reinvested the TZS 170,000 profit from the previous year in her business.  She hasn’t yet recognized the income for the full year from her shop, but she says that her revenue is continuing to grow. 

Her objective is to be a big business woman in the town of Kilolo.  She intends to expand her shop to sell to local customers in town.  In addition she plans to distribute products for sale to other shops in the surrounding villages. 

Mariam says that she is glad that the Iringa Hope SACCOS is a continuing program.  She says that the SACCOS is enabling her to continue to grow her income and she sees more growth in economic activity in Kilolo because of the SACCOS.

Our second interview is with the Evangelist, Abilada Kikoti, who is a member of the SACCOS.  He is an Evangelist at the nearby preaching point at Amani.  He is 56 years old, is married and has eight children, six daughters and two sons.  They range in age from 30 years old to two 10-year-old twins.

Abilada has a business selling charcoal, and farming two acres of maize and beans.  He raises the maize and beans for his own use. 

He has also been a member of the local SACCOS for one year and a member of the Iringa Hope SACCOS for one year.  His first loan from the local SACCOS was for TZS 300,000 for his charcoal business.  He generated income of TZS 380,000 for a profit, after his loan repayment, of TZS 80,000. 

His second loan, from the Iringa Hope SACCOS was for TZS 450,000.  He hasn’t yet recognized the income for the full year, but says that his business is growing. 

His objective is to continue to grow his charcoal business, and to buy an additional four acres of land for raising crops.  He intends to hire laborers to help him to farm the land.  He says that the SACCOS is not only helping him, but also his whole family.  He has been able to send his children to school and to provide better food at home. 

We will be interested to hear how his plans develop and how he is able to continue to increase his income.

After the interviews are over, we say goodbye to the members still near the church and we head back to Iringa.