Overview

The first Savings and Credit Cooperative (SACCO), also known as financial cooperative, was introduced in Malawi by Reverend Father Chimole of the Roman Catholic Church in Dedza in 1962. It was named "Mngonoondo Thrift and Credit," but unfortunately, it ceased prematurely. In 1969, the Chairman and Executive Secretary of the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA) visited Malawi for discussions with government officials regarding the potential reintroduction of SACCOs. Following feasibility studies, SACCOs were successfully reintroduced in 1971 in Likuni and Madisi, thanks to the efforts of three nuns from the Roman Catholic Church. Father R. Roy established another SACCO in Mzimba at Euthini in the same year. In 1973, Malawi registered its first SACCO officially, named Munjili in Mzimba. Building on the success of Munjili SACCO, an additional 26 SACCOs were established by 1980, collectively forming the Malawi Union of Savings and Credit Cooperatives (MUSCCO) in 1980.

Presently, the chartering of financial cooperatives falls under the purview of the Registrar of Cooperative Societies in accordance with the Cooperatives Societies Act of 1998. However, the authorization to engage in financial cooperative business is granted by the Registrar of Financial Institutions under the Financial Services Act of 2010. The Registrar of Financial Institutions is also responsible for supervising the ongoing operations of financial cooperatives in line with the Financial Cooperatives Act of 2011.