Housing Cooperative’s assets rise to K21.2m through Ndalowa Nawo promo

In a bid to increase membership and shares in the Housing Investment and Development Cooperative Society Ltd (HIDCO), has seen the recently formed housing cooperative’s assets grow from K8 990 657 in August to K21 234 069 at the end of the promotion  on November 30.

In the same period, HIDCO registered a net profit of 7,933,877 from K2 219157.

According to the financials presented at their annual general meeting, the cooperative’s mandatory shares are at K6,859,142 from K2,387,500 in August while voluntary shares are at K6,441,050 from K4,386,000.

Its operations commenced very slowly after registration last year (May 2018) but was actively operational this year and accelerated through the Ndalowa Nawo promotion.

“The first opening of accounts started in July 2018 with only two members,” says the financial statement. “It took 12 months — 1 June 2018 to 31 May 2019 — for three members to finish paying their membership fees and start saving in shares despite having a total of 12 members that had started paying membership fees.

“At the time total shares stood at K1,362,500, net Surplus of K1,790,000 and total assets of K3,152,500,” says the Status Report prepared by its board, Robert Mbeza (Chairperson), US-based John Pangani (vice-chairperson), Professor Maureen Chirwa (treasurer), Billy Chiwotha (secretary), Thokozile Beza (vice secretary and ordinary members, Geoffrey Wawanya and Zione Ntaba.

HIDCO was formed as a direct outcome of discussions of a group established as Malawi Builders Network, a social network comprising professionals, entrepreneurs and development conscious Malawians living around the world.

They were brought together by John Pangani, who lives in South Bend Indiana, USA who is an entrepreneur in the real estate industry.

Pangani has passion for assisting Malawians especially those in the diaspora to build or own houses back home and he is also involved in charitable work, whose US-based charity called Pangani Foundation, Inc — formed in 2005 — has been assisting needy learners in primary schools and also hospitals in Malawi.

In its introduction, the Status Report says as early as late 90s, Pangani had been looking for an opportunity to assist Malawians in diaspora to build houses and develop their country through infrastructure development.

Although he failed to get commercial banks, building society, local business men and any other financial institutions interested in his ideas of providing assistance to Malawians in the diaspora, he never gave up the idea.

He envisioned to achieve it through bringing together Malawians in the diaspora and those in the country to explore the idea of ownership.

In 2018 he established a WhatsApp group Malawi Builders Network and through discussions, among the many thoughts and ideas raised, what stood out was the desire to contribute to the development of Malawi through quality building and owning houses.

This formed a foundation for establishing and registering of the Housing Cooperative in May 2018.

In an earlier interview, Mbeza — an internationally recognized professional in the cooperative industry with 36 years of experience (since 1983), had said Malawi  Builders Network comprise Malawians living in the US, UK, Canada, Alaska, Australia, South Africa, other European countries, several southern African countries and in Malawi.

“Through the expertise within the group about cooperatives development, members came to know how cooperatives are formed, their benefits, challenges and their impact that they have on the personal development of its members and the community at large,” who has initiated establishments of a number of SACCOs both in the country and in several African countries.

The Status Report indicates that each share is K73,500 but for one to be a full member, they must have 10 shares totalling K735,000.

“After the 10 shares, a member can opt and we do encourage them to continue saving in Voluntary Shares as much as they want.

“This would help members to increase their investment in HIDCO for better benefits like bigger dividends and bigger loans.

“One can get up to one and half times their shares both mandatory and voluntary in form of a loan.”

The Report states that HIDCO has currently purchased land behind Chitedze Research Station in Lilongwe where they have plots of 40 by 30 on sale to members and they have plans to get to everywhere within Malawi where members want to build their houses like Blantyre, Zomba, Mangochi, Kasungu, Mzuzu, Karonga, Mzimba and anywhere.

The leadership of HIDCO is composed of members with various professions, like entrepreneurs, medical field, administration, accouting and finance, property developers, surveyors and cooperatives development which is championed by the Chairperson, Robert Mbeza who has vast cooperatives development experience covering many countries around the world.