National Association Of Co-operative Financial Institutions Of South Africa 2014 Indaba Theme: Strengthening the Institutional base of the CFI Sector Topic: UNDERSTANDING THE CFI MODEL October 2014 East London, S.A BY : George Ombado, I-CUDE Chief Executive Officer, ACCOSCA

A.Features of Co-operative Financial model? B.Co-operative Financial Institutional Types C.Stakeholders Analysis in Financial System OUTLINE

WHAT ARE CFIs? A co-operative is “an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically- controlled. Many different types of co-operatives exist, which specialize in different business sectors.

WHAT ARE CFIs contd……….. The different cooperatives include; agricultural co-operatives, housing co- operatives, worker co-operatives and consumer co-operatives. CFIs (Co – operative Financial Institutions)are typically co-operatives that offer credit and savings facilities, and in some cases advanced services such as credit cards, investment and insurance services CFIs include co-operative banks, financial services co-operatives (FSCs) and savings and credit cooperatives (SACCOs) or credit unions.

HOW DOES THE CFI MODEL WORK contd…… Equality among members and democratic control are central to the operations and governance; and Building primary (service level), secondary (support level) and tertiary ( advocacy, Regulatory and policy level) co-operatives are structural systems that are vital to the development of stable, well-functioning operations and services. Their essential elements of ownership and control, and their main purpose which is to benefit their members rather than to maximize profit is what has promoted resilience among the members

According to the International Co-operative Alliance(ICA): a co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural aspirations, through a jointly owned and democratically controlled enterprise A Co-operative Organisation?

The Banking Sector Comparison *2010 estimated figures. Source World Bank

FACTS - Financial Inclusion Study Comparing Access across some African countries. Source: FinScope Study

Challenges affecting Co- operative Model in Africa to support Global Economy Lack of Co-operative Education Lack of Adequate Capital HIGH OPERATING COSTS: Low Technology uptake Lack of Cooperative Data Government inconsistency on supervision Poor Leadership

 Board of Directors  Management The National Co-operative Apex has the responsibility of monitoring and coordinating the affairs of all Cooperative unions in a country and represents them internationally. United: THE ROLE OF NATIONAL CO-OPERATIVE APEXES

Every National Co-operative Apex desires to be a leading provider of quality and diversified, supervisory, financial and technical services to all types of savings and credit co-operative unions in accordance with cooperative principles THE ROLE OF NATIONAL CO- OPERATIVE APEXES

Assist in the organization and promotion of Co-operative principles Mobilize funds for granting of loans to affiliate member co-operative Associations Co-ordinate the activities of financing co- operatives in the country for the purposes of streamlining the lending &borrowing program among the affiliates KEY RESPONSIBILITIES

Banana Skins Survey )Overinde indebtedness 2) Political interference 3) client focus Investing in existing income generating activities within communities in the most rural parts of Africa Making use of secure electronic technology to make and receive payments

Co-operative Strategic Focus Global thinking on CFI evolution Delivering Value and meeting members needs would lead to Membership-Growth & Retention Expand product and Service lines Reduce cost of finance and financial facility Governance-Structures/policy direction Human Resources Social Investment

Develop a Regulatory Frame work for CU Publicity/Sensitization Capacity Building Deposit Insurance Cooperative Shares Exchange Use of Technology in cooperative activities WAY FORWARD

A Comprehensive Customer needs analysis to design Products Explore the possibility of Business Incubation Training needs assessment to enable continuous education Entreprenuership Training of Trainers for Co-operative Leadership Co-operative Involved in Structures SPECIAL RECOMMENDATIONS

Co-operative sector continue to provide the security and safety for the poor in society and those better off but are at perpetual risk of becoming poor due to lose of job, business failure or other form of misfortunes. CONCLUSION

PARTING GOSPEL National/Central government need Co-operative National Apex,who also needs government and members. The benefits are mutual

THANK YOU