Housing Investment Cooperative declares 20% patronage refund

In the one and half years since its its inception, Housing Investment and Development Cooperative (HIDCO) has made an accumulated net profit of K14.5 million, up by K1.5 million it made in 2019 of over K13 million.

During its first annual general meeting held on May 31, which is its registration anniversary, the members resolved to set aside 15% of its assets into Statutory Reserves and some funds went into education and marketing reserve and retained earnings.

After which the Board of Directors declared 20% Patronage Refund to the members.

Other highlights from the 2019 financials include growth in membership from 1 paid-up member from the outset to 31 — out of which 14 were women and 17 men.

The report from the Board says its shares grew from K182.500 to K26.4 million and assets from K1.2 million to K42.4 million.

HIDCO acquired land behind Chitedze Research Station in Lilongwe which was subdivided into 52 plots of 40 by 30 and these are being offered to members to buy and later build their dream homes.

HIDCO developed its first 5-year Strategic Plan, which was approved by the members and the chairperson of the Marketing Committee announced the launch of their website, www.hidcomw.com.

The AGM was held using ZOOM in compliance to the COVID-19 guidelines for gatherings as set by Government and the fact that HIDCO has membership of Malawians living in diaspora in the USA, UK, Rwanda and the Democratic Republic of Congo (DRC).

“Having operated for one and a half years, the members agreed to hold this important meeting to review its performance and map the way forward,” said the Board’s report.

HIDCO, whose office are at House No. 240, Malingunde Road, Area 47 Sector 5 in Lilongwe, offers loans to its members to buy the plots at Chitedze Research Station, whose access roads on the land — named Hidcoville — has already being built.

According to the chairperson, Robert Mbeza, this is HIDCO’s first site but the intention is to get to everywhere within Malawi where the members want to build their houses like Blantyre, Zomba, Mangochi, Kasungu, Mzuzu, Karonga, Mzimba and anywhere.

One can become a full HIDCO member by acquiring a minimum of 10 shares at K73 500 each.

HIDCO, that was registered in May 2018 but was actively operational last year, sets its mission to empower people in the interest to acquire real estate investment.

The cooperative, which was formed by Malawians living in diaspora — notably in the US, UK, Canada, Alaska, Australia, South Africa, other European countries, several southern African countries as well at home — hit the ground running in just a year since it got registered.

It was formed from a discussion group called Malawi Builders Network (MBN) which comprises physical planners, surveyors, property developers, architects, engineers, transporters, real estate agents, finance experts among others.

The network created a WhatsApp Forum to discuss and share ideas on businesses and how to develop and support each other in their various enterprises and business ventures.

It was through the WhatsApp group that a discussion in the area of housing investment brought the idea of establishing a housing cooperative.

Through the expertise within the group about cooperatives development, the members then agreed to establish and register the housing cooperative on 31 May 2018.

MBN was initiated by John Pangani, who is an entrepreneur in real estate, tourism transporter and radio DJ for University of Notre Dame Radio (2hrs Reggae Show) living in South Bend, Indiana, USA.

Robert Mbeza was instrumental in the establishment of the housing cooperative having vast experience with financial cooperatives since 1983.

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