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COMSIP Plus another 2 pictu mission and buying COMSIP C 1 COOPERATIVE UNION LIMITED ures depicting say training or s shares and giving out of loans ANNUAL REPORT 2013 Cooperative Union Lim D support s mited

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COMSIP COOPERATIVE UNION LIMITED

Plus another 2 pictures depicting say training or support

mission and buying shares and giving out

COMSIP Cooperative Union Limited

1

COMSIP COOPERATIVE UNION LIMITED

Plus another 2 pictures depicting say training or support

mission and buying shares and giving out of loans

ANNUAL REPORT

2013

COMSIP Cooperative Union Limited

COMSIP COOPERATIVE UNION LIMITED

Plus another 2 pictures depicting say training or support

of loans

COMSIP Cooperative Union Limited

2

MISSION

Delivering flexible Savings and Investment products and

services in order to economically empower Malawians to

improve their livelihoods through member owned Savings

and Investment cooperatives

VISION

A vibrant, sustainable Savings and Investment culture

amongst COMSIP Cooperative Societies in Malawi”

3

CORE VALUES

The Union observes the following values:

Integrity: Honesty and sincerity all the time

Client Focused: Treat clients with utmost respect and care

Transparency and Accountability

• In all endeavours, members have to be accountable and transparent

Employee and member development –

• In the spirit of cooperative movements, continuous human resource development is

one of the pillars of success, and development of people will foster a learning

organization culture

Hard work and commitment

• Working hard and being committed to achieving the organizational goals

Teamwork

• All employees shall work as a team focused to meeting the organization strategic

objectives and mission

Corporate and Social Responsibility

• The union will accord maximum attention to social issues of the clients and the

society where the clients operate, bearing in mind that the society is the one that

sustains its existence

Sensitive to cross cutting issues (HIV/AIDS, Gender and Environment)

• The Union will ensure issues of HIV/AIDS, gender and the environment are

integral in its operations within the workplace policy framework.

CHAIRMAN’S STATEMENT 2013

Canaan Thebulo Gondwe

PERFORMANCE

The year 2013 was yet another successful year

for COMSIP Cooperative Union as it earned an

interest of K958,000.00 on shareholders’ funds

and mobilised resources amounting MK

927million ( equivalent of USD 2.25 million

from the World Bank. The Union is the lead

partner and fund manager for the Strengthening

cooperative in Malawi project and the Scottish

government through the UK cooperative

provided GBP430,000 for the first year..

The World Bank resources are a manifestation

of the impressive performance in implementing

a savings and investment initiative in public

works program. A total of Mk839 million in

savings has been mobilised up from MK

million reported in the last financial year. The

portion of savings attributable to cooperatives

was standing at MK50 million from 65

cooperatives. The savings is invested in various

investment activities at primary cooperative

level such as, winery, poultry, irrigation

farming, livestock and agriculture production

and produce marketing. At the end of the year a

total of Mk99million was deposit for investment

in the coming year.

4

CHAIRMAN’S STATEMENT 2013

Canaan Thebulo Gondwe

The year 2013 was yet another successful year

rative Union as it earned an

interest of K958,000.00 on shareholders’ funds

MK

.25 million

The Union is the lead

partner and fund manager for the Strengthening

cooperative in Malawi project and the Scottish

government through the UK cooperative college

provided GBP430,000 for the first year..

The World Bank resources are a manifestation

erformance in implementing

a savings and investment initiative in public

A total of Mk839 million in

savings has been mobilised up from MK331

reported in the last financial year. The

portion of savings attributable to cooperatives

was standing at MK50 million from 65

cooperatives. The savings is invested in various

investment activities at primary cooperative

gation

farming, livestock and agriculture production

and produce marketing. At the end of the year a

total of Mk99million was deposit for investment

The Union continued to host World B

teams in the year and the visit of the World bank

Country Director to COMSIP clusters to appreciate its

implementation and impact. At its supervision mission

of October 2012, the mission rated COMSIP highly

satisfactory. This rating came amidst several

challenges mostly in mobility. It is the dedication and

commitment of staff that has greatly contributed to

these achievements. Innovations in the approach and

delivery methodology also contribute in this

substantial performance rating.

During the year we innovated in two fronts. Firstly on

how to provide backstopping services to augment the

work load of extension workers whom we rely on. The

introduction of community facilitator (CF

cooperative agent to backstop fellow members in all

aspects of the COMSIP approach was achieved.

Secondly, an innovation in feedback mechanism to

inform progress of clusters / cooperatives was achieved

through SMS reporting using mobile p

As at June 2013, the Union register

membership and share capital albeit at slow pace.

Membership grew from 51 affiliates to 6

representing 27% growth, compared

% in the strategic plan. This growth is also reflected

in the share capital growth that

shares representing 38%. The slow pace in share

capital growth is attributed to the low numerical

values that many cooperatives have as shares in the

union. A majority of cooperatives have a single

share. A changed approach to meet the

in our strategic plan and will be implemented in the

coming year.

The Union continued to host World Bank mission

teams in the year and the visit of the World bank

Country Director to COMSIP clusters to appreciate its

implementation and impact. At its supervision mission

e mission rated COMSIP highly

satisfactory. This rating came amidst several

challenges mostly in mobility. It is the dedication and

commitment of staff that has greatly contributed to

these achievements. Innovations in the approach and

y also contribute in this

substantial performance rating.

the year we innovated in two fronts. Firstly on

g services to augment the

d of extension workers whom we rely on. The

introduction of community facilitator (CF) as a cluster /

cooperative agent to backstop fellow members in all

aspects of the COMSIP approach was achieved.

Secondly, an innovation in feedback mechanism to

inform progress of clusters / cooperatives was achieved

through SMS reporting using mobile phone technology.

nion registered growth in its

membership and share capital albeit at slow pace.

affiliates to 65 affiliates

, compared the projected 15

% in the strategic plan. This growth is also reflected

in the share capital growth that grew from 68 to 94

%. The slow pace in share

capital growth is attributed to the low numerical

values that many cooperatives have as shares in the

union. A majority of cooperatives have a single

share. A changed approach to meet the targets is set

and will be implemented in the

5

The union has a greater opportunity to raise its

membership considering the enormous

number of clusters – cooperatives formed with

the support of the World Bank through LDF.

There is also an added advantage as a lead

partner in the support to cooperatives Malawi

project in utilizing the available capacity to

train more cooperatives. All this puts the

union in good outlook for the future.

TRAINING:

The union continued to build capacity in its

staff, stakeholders and community members

for improved delivery and performance. A

total of 31,060 community members, 234

extension workers,179 community facilitators,

9 board members and staff were orientated/

trained in various field according to the

identified. For instance, the board was drilled

in strategic planning and corporate

governance.

DIVIDEND

A total of K383, 600 representing 40% of the

surplus is proposed for payment as dividends for

the 2013 affiliates. This surplus comes from the

investment of share capital in old mutual

investment account. However, the Union is

exploring more rewarding investment vehicles

such as real assets and old mutual unit trust

which has higher returns than the other old

mutual products.

STRATEGIC OUTLOOK

In pursuance of the union strategic objectives, it will

continue to undertake a number of activities. Notably,

the Union will continue implementation of savings and

investment initiative in PWP reaching out to more

clusters as pre-cooperatives, concentrate in promoting

value addition and market linkages for cooperatives to

leverage more income for cooperatives which could be

invested in shares at the union. The union will continue

forging strategic partnership as a way of resource

mobilization and positioning itself in the financial and

project management arena. To strengthen its corporate

position and sustainability the Union will have to

review its By-Laws to embrace growth prospects.

BOARD OF DIRECTORS

The board of Directors have served for six months

at the end of the financial year as the Board was

elected midyear.

CONCLUSION

The milestones achieved are a manifestation of

the dedication of staff and the strategic direction

of the Board of Directors. I would like to request

you all to remain steadfast, dedicated and

committed to steering the union forward in its

quest to alleviating poverty among ordinary

Malawians. Without your support I would not

have been reporting diligently and confidently on

the performance of the union.

Canaan Thebulo Gondwe

BOARD CHAIMAN

6

CEO’s STATEMENT 2013

At national level the impact of devaluation had

its toll on the granting systems and cooperative

resource mobilisation as the cost of living went

up.

The union continued to be a lean structure. In

the year the Finance and Administration

manager resigned and the position of

Operations manager still remained vacant. The

two key positions are filled with acting

personnel and are to be filled in the coming

year

OFFICE STRUCTURE

The Union secretariat moved from its rented

accommodation in old town to its new premises

in Area 6. The new premise is spacious

accessible and conducive environment to work.

The establishment of this office space has

brought confidence in its members (primary

cooperatives) This development has

encouraged primary cooperatives to likewise

establish permanent structures as office space.

It has been one of the fulfilments of the actions

in the Union Strategic Plan.

OPERATIONALISATION OF THE LEAD

PARTNER ARRANGEMENT

The Union was identified by the Ministry of

Industry and Trade to be a lead partner in the

implementation of the Supporting Cooperatives

Malawi project, a Scottish Government funded

project through the UK- Cooperative College. The

other partners are MUSSCO and Mzuzu Coffee

Cooperative Union limited. The Union is a fund

manager and also helps in the operation guidance

on a day to day basis. The Union facilitated the

opening of regional offices in the south and

northern regions while the central region the officer

is housed in the union building. The Union

facilitated the recruitment of project officers and

identification of offices currently in Ministry of

Gender, Community development and Social

welfare. With the involvement of the project staff

the union has accelerated the training of clusters

into cooperatives.

INCORPORATING SAFEGUARDS

The implementation of economic activities triggers

environment and social concerns. The World Bank

Operational Policy (OP4.01) entails that Bank

supported project be subjected to screening.

COMSIP ensures that these activities do not

negatively impact on the environment through

devising mechanisms to protect the environment.

To this end the Union developed a toolkit for

environment and social screening of economic

activities and the production of Environmental and

Social management Plans (ESMP)

The year

experienced

milestones worth

noting and

produced

impressive impacts

albeit the mobility

shortfalls.

7

SHORT MESSAGE REPORTING (SMS)

COMSIP works with diverse communities scattered

across the country. These clients through their

clusters and cooperatives need constant feedback in

terms of reporting of financial and physical

progress. Over the years the Union relied on

extension workers to provide such progress reports.

With time the workload as more clusters are formed

has overwhelmed the capacity of extension workers

who in addition have mobility problem. As a result

the MIS department of the Union devised an SMS

reporting system that uses mobile phone

technology. The extension workers, Monitoring and

Evaluation Officers at district councils and the

community facilitators at cluster and cooperative

levels have been trained on the system and reports

have been easy to get. This has eased the transaction

cost in search of real time data.

OUTLOOK

There is high prospect to forge ahead and become

self sufficient. There is great demand for service

and increased share purchase for more product and

service delivery. With the continued support of the

World Bank operation self sufficiency is inevitable.

The union looks forward to establishing regional

offices to close the service distance to the

cooperatives.

OPEN FIELD DAYS

As a form of IEC and also C2C the union encourages

clusters and cooperatives to organise open field days with

the assistance of the community development office in the

districts. In the year under review two open field days were

conducted in Kasungu and Blantye districts. During the

field days several products were show cased and trading

and information exchange took place. The surrounding

communities and other clusters cooperatives attended these

field days. The results from the field days have been

capacity need for the clusters to be cooperatives and two

cooperatives have been set up in Kasungu.

RESOURCE MOBILISATION - ADDITIONAL

FINANCING

The World bank through the Local development Fund, a

Government community Fund mechanism continued its

trust in COMSIP Union as an implementing Agency of

savings and investment in LDF projects. In its mission

report towards the end of 2012, COMSIP implementation

was rated highly satisfactory. To this end the World Bank

extended its additional financing to Public Works

programme to COMSIP as well to the tune of USD 2.25

million. This gesture also creates confidence in its

members of staff who have shown passion for results.

WEBSITE HOSTING

The website was redeveloped giving it a new look with

updated information as shown below. The site can be

visited at http://comsipmw.org .

E- TRANSFER

In the year we introduced e payment for training

allowance to extension workers and district

community development officers as supervisors.

The system has worked on very well and is cost

effective. Tenneson Kalizga Gondwe

Chief Executive Officer

8

STATEMENT OF CORPORATE GOVERNANCE

The Union is run by the Board of Directors

elected among primary cooperatives at an

AGM. The union secretariat is delegated for

the day to day management of the Union

operations.

Board Of Directors

The board has 9 members as follows:

Mr. C.T. Gondwe - Chairman

Mr. I. Kampala - Vice Chairman

Mrs N. Wallama - Secretary

Mr. G. Chipanga - Treasurer

Mrs Joyce Nkhoma - Member

Mrs Sellina Mkandawire Member

Mr. W. Nhlongo - Member

Mr. S. Samva - Member

Mr. D. Maloya - Member

Board Committees

To effectively undertake an oversight role the

board has sub committees as follows:

• Finance and Planning Committee

• Risk Management Committee

• Disciplinary, Recruitment and

remunerator committee

Ethical standards

The board is committed that all the

operations of the union are undertaken

with utmost ethical standards. All

employees of the union abide by the

code of ethics

9

BOARD MEETINGS

Two board meetings were held during the year under review where among many other issues, they

discussed:-

a) Approval of 2012 audited financial statements on recommendation of the Planning and

Finance committee

b) Recommend payment of 40% proposed dividend to the registered affiliates as at 30th

June,

2012.

c) Review and approve 2014 work plans and budgets and staff appraisal results prepared by

management as recommended by the Finance and Planning committee and recruitment,

remuneration and discipline sub-committees of the board.

SUB COMMITTEE MEETINGS

The two subcommittees of Finance, Planning and Audit Committee and that of Recruitment,

Remuneration and Discipline met twice during the year under review. Among the business they

transacted included:

a) Pension Fund Management

b) Staff appraisal results

c) Union’s budget and Workplans

ANNUAL GENERAL MEETING

An Annual General Meeting for all COMSIP Cooperative Union Limited affiliates was held in

December, 2012 at Messah Lodge in Lilongwe where among other things, new office Board members

were elected.

A cross section of the participants at the Union

AGM

The elections were facilitated by officials

from the Ministry of Industry and Trade,

Department of Cooperatives. There was a

smooth handover from the outgoing Board

and the incoming Board.

10

ORIENTATION OF NEW BOARD MEMBERS

Members of the new Board were oriented in their new functions. The orientation which was

facilitated by officials from the Ministry of Industry and Trade, Department of Cooperatives

took place at Linde Motel in Mponela. The purpose of the orientation was to impart skills to

the new Board members so that they are able to discharge their duties efficiently and

effectively.

11

MICRO SAVINGS FOR THE POOR: FINANCING THE CAPITAL NEEDS

Savings mobilisation

A total of Mk836.8million (USD1 2.03million) has been mobilised from 102,203 members

from both groups and cooperatives of which 66% are female member. Cooperatives savings

contribute a total of Mk50.8 million (USD123, 300). On average each member has Mk8, 188

(USD19.9) in savings. When split into groups and cooperatives the average savings for

cooperatives members is higher at MK16, 639 (USD40.1) and that of groups at MK7,

927(USD19.2). The disparities show that being in cooperatives as registered body corporate

members have greater savings safety and security than in being in groups. At all levels the

average savings are higher than the less than a dollar per day poverty indicator. Therefore the

COMSIP intervention contributes to the improvement in this indicator as shown in the graph

below for the period the initiative has been implemented.

1 USD 1: MK412 as at 9

th November 2013.

Average Savings Per member

-

200,000

400,000

600,000

800,000

2008 2009 2010 2011 2012

Cooperative

s

Groups

The savings volumes which is intermediated have been on the increase at both group and cooperative

levels with a drop for cooperatives in the year 2009-2010 due to poor performance of tobacco in the

year in which many cooperatives had invested their savings. The average price of tobacco was low and

many farmers were affected.While for groups many groups in the early years were from the MASAF 3

APL II program who had a loan mindset and lost steam with non disbursement of loans as per the

misconception of COMSIP in MASAF. The momentum was built up in the subsequent years as

COMSIP hyped IEC and PWP wages were a catalyst for saving.

Members at Jinthajembe at weekly savings

meeting Data Source: COMSIP data base

12

The share of investment as at October 30th

2013, mirrors the rural economy with Commodity

trading of which agriculture related form the bulk of traded commodities is highest at

Mk714.4 million (USD1.7million), followed by financial intermediation- on lending as a

form of service to its members at MK99.4 million (USD241.3million) There is also

investment in livestock like dairy, goats, pigs, poultry and a good number of members also

invest in irrigation farming and food processing. From the table therefore it is deduced that a

big volume of loans were invested in various businesses with the deposits/savings as balance

at the end of October 2013 to be intermediated as loans as a service to members.

Investment Promotion

Investment promotion is through financial intermediation with a focus on micro enterprise investments.

Investment funds are derived from member savings. The trend in loan portfolio is similar to the trends

on average savings, with Cooperatives having a higher average loan portfolio of MK758, 209 per

cooperative than COMSIGs who intermediate at a portfolio of MK149, 500 per group. This likewise is

due to the saving safety and security in cooperatives than in groups. On average the loan portfolio has

been increasing over the years as shown in the graph below:

Average Loan Portfolio

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2008 2009 2010 2011 2012

Cooperativ

es

Groups

There are four categories of businesses that

COMSIP promotes. These are Trading, Service,

Production and Processing. Within each category

members undertake several types of micro

enterprises with varied amount of capital invested

in their businesses as shown in the table below:

Table1: Capital Invested in Business Types

Business Types Total Amount Invested

Bakery 1,712,300.00

Commodity Trading (Various ) include agri trade 714,375,891.50

On-Lending 99,428,803.50

Irrigation F arming 7,342,740.00

Lives tock Production 11,077,410.00

Dairy F arming 156,200.00

Weaving 600,000.00

Winery 41,805.00

Tree Nursery Growing 706,000.00

General F arming 1,227,400.00

S eedling Multiplication 90,450.00

Grand Total: 836,759,000.00

Source: COMSIP data base Data Source: COMSIP data base

13

PARTNERSHIP and STAKEHOLDER SUPPORT

Lead Partner Arrangement

During the year COMSIP Cooperative Union entered into partnership with the UK

Cooperative College as a lead partner in the implementation of the Support to Cooperatives

Malawi project. The other partners are Mzuzu Coffee Cooperatives Union and Malawi Union

of Savings and Credit Cooperative. The project aims at supporting the growth of a strong co-

operative sector in Malawi, and in particular to help small and marginal farmers improve

their livelihoods through collective entrepreneurship. Through education, mentoring and

other support, small farmers will be helped to form and improve their own member-

controlled businesses (co-operatives), and as a result will be able to improve their yields,

diversify their crops, and through joint marketing, get better prices for their harvest, leading

to improved livelihoods. The project is for a period of three years and will end in 2015, and

by the time it is envisaged that the National Apex body of Unions will have been created.

The project has regional officers who oversee capacity building of cooperatives at regional

level. The Union make use of these officers as link persons with stakeholders including the

community members. The Union has benefited through capacity building of 14 cooperative

in cooperative member education, engagement of staff in supervision missions and local fairs

as shown below.

Locally organised fair in Blantyre with assistance of Project Officer South

14

Participation in IYC

During the year the world celebrated

International Year of Cooperatives IYC and the

Union played a key role in making the national

celebrations a success. The celebrations were

championed by the five Cooperative Unions

together with the Ministry of industry and Trade.

The opening session was presided over by the

Minister of Industry and Trade. The theme for

the IYC was “Cooperative Business makes a

Better World”. Members of COMSIP cooperatives and groups within Lilongwe and some from

the south and northern region participated through product displays and in plenary presentation

sessions as shown in the picture COMSIP members formed the largest part of the participants on

the opening day

15

Support for Success stories Video Documentary

The successes of COMSIP approach attracted the attention of the Office of the President and

cabinet (OPC) which directed its information department to document the much needed

success stories of home grown initiatives in poverty alleviation. With support from the Union

the Department undertook a national wide tour to capture the success stories that have been

documented in a video documentary and newspaper print as shown in the newspaper cutting

below. The video documentary was distributed to various ministries and stakeholders and can

also be downloaded from the website at http://comsipmw.org

Documentary cover

16

Other Stakeholder Support

Support was extended to the Thematic team meetings and supervision, Ministerial staff

especially Ministry of Gender, Community Development and Social Welfare, Ministry of

Local Government, Environment and Climate Change through their Environmental District

Officers(EDO) M & E and Ministry of Finance supervision and the involvement of district

commissioners in supervision missions to afford them knowledge sharing.

PROGRAM IMPACT

Graduation

The COMSIP approach has recorded greater impact in the lives of ordinary Malawians that

participated in the Public Works Program with a meagre wage of Mk200 per day for 12 days.

As the wage was saved and invested in the group business of on lending and other productive

investments, at least 50% of participants in COMSIP groups indicate that their incomes are

50% higher than the 12 days wage rate and may not participate in the Public works program

as reported by the Tracking study commissioned by the Local development Fund TST in

2012.

Poverty Alleviation

In addition to the above study results, a monitoring project supported by a consortium of

International NGOs called Kalondolondo project revealed that the COMSIP program has

registered huge successes in poverty alleviation as reported in the captioned newspaper

article.

17

Incremental assets accumulation.

In its delivery methodology the Union emphasises on an incremental asset accumulation

strategy for poverty alleviation. This strategy encourages members to purchase household

provident and productive assets in bits towards achieving the whole in future. The rationale is

to make use of the available income or keep the income in assets towards a set objective. As

wants are many any postponement of purchase would result into missing the set objective.

One commonly applied incremental asses accumulation strategy is on house construction

especially roofing with corrugated iron sheets as shown in the half roofed house below.

Embracing COMSIP concept in Civil Service

There is growing concern on the welfare of Civil service in Malawi. As a result the Office of

the President OPC has formed a Civil Service Social Economic Empowerment Network

(CISSEN) to champion the economic empowerment of civil servants across the country

through a savings and investment culture. COMSIP was asked to provide guidance on the

COMSIP approach. Several meetings were held including high level meeting with the Chief

Secretary. Knowledge exchange visits were made to various COMSIP cooperatives

including the COMSIP cooperative at Mzuzu city and the COMSIP group at Mchinji district

council. The two solely draw membership from the civil servants and were taken for best

practices.

Mayi Manyozo of Ntcheu used to sleep in

grass thatched house. After joining COMSIP

and being exposed to the incremental asset

accumulation strategy, she started

purchasing iron sheets whenever she raised

enough to meet the cost of one sheet she

kept the iron sheet until enough was stocked

to cover half the house. She has since roofed

one side of the house as shown next

.. “I am a proud owner of an iron sheet house in the village though partially roofed. I have started

accumulating some so that come the end of 2013 I finish the other side, Mai Manyozo intimated.

18

With such impressive performance of civil servants involved in COMSIP, CISSEN has

embraced the concept and advised district based CISSEN committees to liaise with the

district COMSIP team in building a culture of savings and investment among civil servants.

Other impacts

Following the adherence to the 8 jobs as human development indicators, COMSIP groups and

cooperatives act as platforms for other developments. As a result impacts are evident in

health, education, water and sanitation and other social development indicators as shown in

the pictures.

8 Jobs/HDI Percentage of members in

Supported Non supported

Education: child enroll in preschool 58 48

Health: Access to medical care 98 93

Owning a toilet 99 97

Housing: With burnt brick walls 76 63

Iron sheet roofed 68 45

Nutrition: Consuming 3 meals a day 91 83

Note: * is data from COMSIP Impact study Nov 2012

19

CAPACITY BUILDING

Member Training and Grants Disbursed

During the year, the Union disbursed MK91.6 million in support of Financial Literacy and Business

Management Trainings to 18,320 beneficiaries in groups and clusters formed in all the districts in

Malawi. By the end of the year, the union had cumulatively supported 3, 431 groups out of the 4, 457

groups formed translating into 65, 476 beneficiaries out of the targeted 99, 153, representing 66%

achievement. (Refer to Table below)

The year has seen an increase in the number of Cooperatives affiliating to the Union following the

formation and training of 14 new cooperatives resulting 140 cooperatives formed of which 65 have

affiliated to the Union through purchase of shares. The Union also organized some training for the

Credit and Supervisory subcommittees for some of its affiliates with the objective of equipping

members of the subcommittees with knowledge and skills on how they can effectively discharge their

duties and responsibilities in accordance with their positions (refer to Table below)

COMSIP Union organized Environmental and social safeguards trainings and developed a toolkit for

the sensitization and development of Environmental and social management plans for the mitigation

of the environmental and social effects that some business enterprises bring on the environment and

social welfare of people. A total of 179 Community Facilitators, 435 DESC team members, 179

extension workers and 329 clusters were oriented on the toolkit and development of the

environmental and social management plans.

Staff trainings

During the year the union lined up some local and external training/workshops for the staff. Both

union staff members as well as members of the board attended some trainings and workshops as

indicated in the table below

Local trainings and workshops

Name of Staff Type of training/workshop Place

All Union Staff Environmental Safe guards Mponela

T.K. Gondwe ECAMA Mangochi

C. Kadewele SOCAM Mangochi

M. Kawamba Institute of IA Mangochi

C. Kadewele

M. Kawamba

P. Kamwendo

W. Kabango

SAGE Office

20

External trainings and workshops

Name of Staff Type of Training/workshop Place

T.K Gondwe

B. Munthali

C. Mwanyali

Msindwa

SACCA Congress Entebbe Uganda

T.K. Gondwe

H. Dunga

B. Munthali

W. Kabango

Study visit to COMSIP in

TASAF

Dar-e-salaam, Tanzania

T.K. Gondwe

B. Munthali

C.B. Kadewele

IFAD Workshop Maputo, Mozambique

C. Chaphamtengo Management Arusha, Tanzania

T.K. Gondwe

C. Gondwe

J. Mbingwa

Performance Management Nairobi, Kenya

T.K. Gondwe

M. Kawamba

Risk management Accra, Ghana

VISITATION AT COMSIP COOPERATIVE UNION

A number of visitors came to the UNION during the year under review. These visitors

included government officials and those from the private sector. However, cooperative

members formed a larger percentage of the visitors who paid a visit to COMSIP Cooperative

Union Limited.

CHALLENGES

In the year the Union faced several challenges some of which were sorted out in the course of

implementation while some still remained outstanding as follows

Transport

Transport facilities via avis the volume of work remained a challenge and the frequent breakdowns

exacerbated the problem. The Union continued to rely on the old fleet of vehicles 3 in number with

one off road and a lone new vehicle. At the rate of implementation, the fleet fell short to effectively

deliver the services, further with the age of vehicles; they also posed an accident risk to staff.

21

Demand for the services

COMSIP approach has become very prominent among ordinary Malawians; as such there is

overwhelming demand of the services by community members against the limited resources. The

positive testimonies and improved livelihoods by members in COMSIP groups and cooperatives have

wooed many to join the existing institutions and others forming their own groups and cooperatives.

The Union is working hard to mobilize resources from the existing donor and also to leverage

resources from other sources.

Commitment of stakeholders

Key stakeholders in the implementation of COMSIP activities remain the district Councils and

extension workers. This is in line with the decentralized approach that the Union embraced at the

inception of the Project. In spite of the various technical supports given to these structures at district

level, commitment at these levels is sporadic. It varies from council to council, with monetary benefit

regarded as a catalyst for individuals to commit themselves. Thus the allowance syndrome has taken

precedence over and above their respective sect oral roles as civil servants. The Union will at all times

strive to innovate so that the ultimate beneficiary is reached with effective service delivery

mechanisms.

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1. FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

DIRECTORS REPORTS

The directors have the pleasure in submitting their report together with the audited statement

for the year ended 30 June 2013.

INCORPORATION AND REGISTERED OFFICE

COMSIP Cooperative Union Limited is an apex cooperative society for COMSIP primary

cooperatives registered under the cooperative Act 1998. The registered office of the union is

situated at COMSIP House, Area 6, Plot No. 172 in the city of Lilongwe, Postal Address

Private Bag 105, Lilongwe.

PRINCIPAL ACTIVITIES

COMSIP Cooperative Union is registered as a cooperative society under the cooperative Act

1998. It is in the business of promoting cooperative business with emphasis on cultivating a

culture of savings and investment.

AREA OF OPERATION

The union operates in all districts in Malawi.

FINANCIAL PERFORMANCE

The results and state of affairs are set out in the financial statements with accompanying

notes to the financial statement.

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DIRECTORATE AND SECRETARIATE

The following directors and secretary served in office during the year

Mr. C.T. Gondwe - Chairman 6months

Mr. I. Kampala - Vice Chairman 6 months

Mrs N. Wallama - Secretary 6 months

Mr. G. Chipanga - Treasurer 6 months

Mrs Joyce Nkhoma - Member 6 months

Mrs Sellina Mkandawire - Member 6 months

Mr. W. Nhlongo - Member 6 months

Mr. S. Samva - Member 6 months

Mr. D. Maloya - Member 6 months

T.K Gondwe Secretariat All Year

In accordance with the corporative Society Act 1998 board members shall serve for a term of

minimum one year and maximum of 3 years. At the forthcoming AGM those destined for a

year term will retire and being eligible for re election.

AUDITORS

The auditors Graham car will continue to serve in office for the forthcoming year as

stipulated in the term of offer. A resolution will be passed at the time of expiration of contract

whether to reappoint them.

FOR AND ON BEHALF OF THE BOARD

C.T.Gondwe Samuel Samva

Chairman Director