Members

Overview

If you are running a business and would like to be able to access fit-for-purpose savings and/or credit products, then the SMEAZ Savings and Credit Cooperative Society Limited (SMEAZ SACCOS) membership is your answer.

Members are the owners (shareholders) of the SACCOS. They hold shares in the SACCOS, as well as monthly savings accounts into which they contribute savings on a monthly basis. They are entitled to participate in all products and services of the SMEAZ SACCOS. Products consist of business loans, as well as personal loans.

How do I become a member?

To become a member of the SMEAZ SACCOS, you first need to be a paid-up (i.e. Standard, Small or Medium Enterprise membership) member of the SME Association of Zimbabwe. Details and benefits of membership can be obtained here. The SMEAZ SACCOS was created as an entity for members, hence the requirement that anyone joining the SACCOS as a member must also be a member of the Association. You can get details on this from this page. Membership costs for the Association range from $50 to $200 per year, depending on the size of your business as well as the types of loans that you will require. Monthly payment options are available for this membership.

Becoming a member of the SACCOS requires a minimum initial payment of US$120, consisting of a non-refundable joining fee of $50, purchase of shares for $50 and the first month's savings of $20. Details of each of the above are contained below.

Joining Fee

The joining fee of $50 is a non-refundable once-off payment which entitles you to become a member. It covers the fixed costs that the SACCOS incurred at setup, as well as the cost of servicing all accounts within the SACCOS.

Shares Purchase

Every member must hold at least 5 shares in the SACCOS. The SACCOS is run on a one-member-one-vote basis, and every member is entitled to a vote, regardless of the size of their shareholding. Members can elect to hold more than the minimum 5 shares, up to a maximum of 20% of the shareholding of the SACCOS. Each share costs US$10. Shares can only be redeemed if one wants to terminate their membership of the SACCOS. This can be done by selling the shares to other members, or by giving a one-year notice of intention to terminate membership. Shares are not eligible for guaranteeing loans, and cannot be liquidated to settle loan obligations.

Shares do not earn interest, but they do earn a dividend payment which is done at the end of the year based on profits earned by the SACCOS.

Monthly Savings

Every member is obligated to save a minimum of US$20 per month. Members can opt to save more than this minimum. The monthly savings account is a long term savings account, and withdrawal of savings from this account is subject to a notice period of 90 days. The monthly savings account earns interest at 2% per month, and the interest is compounded monthly. This account is meant to be for accumulation of long term wealth, hence the restriction on withdrawal from it. It is mandatory for every member to hold a monthly savings account. Should you want to have more flexible savings outside of the monthly savings, you can also look at the range of savings products here.

Your monthly savings balance determines the size of the loan that you can access, and loans can only be for up to a maximum of six times your savings balance. Hence if you are going to need a loan of US$6 000, you must have at least US$1 000 in savings. Note that loan sizes are limited to a maximum of 20% of the total savings held by the SACCOS. You can therefore enquire via Whatsapp what the maximum loan you can apply for is, at any point in time.

What is the advantage of being a member?

At SMEAZ SACCOS we understand that the individual and the business are indivisible, and that businesses emerge from individuals. We therefore help you to save capital for your business, but also to achieve those higher-level personal goals. Whether it’s saving for a rainy day, to buy that dream car, house, or for your, or your children’s education, we help you get there.

Being a member means you are part of the running of the SACCOS. The SMEAZ SACCOS holds monthly feedback meetings so that members are kept abreast of all developments within the SACCOS. You have a say and a vote in terms of how the SACCOS is run. We also invite non-members to participate in these meetings from time to time so that they can hear first-hand how those who are members are faring. Should you want to participate in a future meeting, you can join this Whatsapp group.

Frequently Asked Questions

Do I need to pay all this money at once? We understand that for some members, it may be difficult to come up with both the joining fees for the Association, as well as for the SACCOS. We therefore are flexible, and allow you to pay monthly fees for the Association, and also to pay for the SACCOS membership gradually over time. You can get in touch with us on WhatsApp to discuss your particular situation.

What is the waiting period before I can get a loan? Currently we are not applying waiting periods before members can get access to loans. However, you will need to have joined as a member, and we will need to have done the preliminary activities required for us to fully understand your business, before we are able to provide a loan. Loans are processed on a first-come-first-served basis, and smaller loans generally have priority over larger loans. We also consider seniority (i.e. older members get first preference) where there are more loan applications than funds available.

Do I automatically qualify for a loan once I have joined and have done the savings? There is no automatic qualification for loans, with the exception of emergency loans (i.e. loans against savings). Given that we are lending out members' savings, we have to take necessary precautions and also do appropriate vetting before we issue a loan. The main issues we consider are:

• Ability to repay

• Collateral or guarantees

• Our knowledge of the business and its owner

How safe is my money? The SMEAZ SACCOS is run on a professional basis, and we have a robust set of internal controls which include three-tier authorisations for any payments to be made, comprehensive loan processing procedures, requirement for security for loans and many others. There is a requirement for monthly reporting, and an annual audit done of the books. Our primary objective in all that we do is ensuring the safety of depositors' funds.

Can I be a member even though I am not running a business currently? If you are not currently running a business, membership may not be helpful as it primarily enables you to get loans. The cost of paying the joining fees may not be warranted if you are not going to be getting loans. We do not provide salary-based loans, and loans must be assessed against a business' cash flows. We therefore do not recommend people not running businesses to become members. But if you are intending on starting a business in the near future (or have a side-hustle business) you can join as a member to ensure you get an early start.

You can still benefit from the savings products as a non-member, though.

Do you have testimonials or examples of members who have benefited? Yes we do, several, actually. Rather than give you comments or a video clip, we are happy to invite you to attend the next open meeting of the SMEAZ Savings and Credit Cooperative Society members. We hold meetings every month, and periodically invite non-members to also come through. You can join our Whatsapp group here.

You can also keep track of where we are by registering for free, and with no obligations on this website. Click here to register.

Can I be a member even though I am not in Harare? Yes you can be a SACCOS member even if you are not based in Harare. Our membership is open to everyone across the country. However we are not able to process loans for people outside of Zimbabwe, though it is possible to save. If you are outside of Zimbabwe and simply want to save, you can use the non-member registration to do that.

I want to sign up! What next? Follow the steps indicated in the blue box to the right.

To be a member of the SMEAZ Savings and Credit Cooperative, you first need to be a paid-up member of the SME Association of Zimbabwe (Standard, Small or Medium enterprise membership). Note that Standard members will not be able to access working capital or asset finance loans, which are only accessible to Premium and Platinum members.

Once you have processed your membership of the SME Association of Zimbabwe, you can then proceed to join the SMEAZ SACCOS using the button below. You will need to be logged on to complete the SMEAZ SACCOS registration. If you have not registered an account, please do so first, then return to complete your registration.

Once you have processed your membership of the SME Association of Zimbabwe, your Member Consultant will take you through the process of becoming a member of the SACCOS.

You can get hold of us on Whatsapp for further details.