Proposed Formation of a Primary

Savings and Credit Cooperative

23 August 2012

Namibia Savings and

Credit Cooperative

What is a cooperative?

A cooperative is a group of people acting

together to
meet the common needs and aspirations of its
members,
sharing ownership and
making decisions democratically.

Cooperatives are not about making big

profits for shareholders, but creating value
for customers

Types of Cooperatives

There are two types of cooperatives namely

in Namibia as per the Cooperatives Act of 1996:

1.

service cooperative owned and managed by

the people who use its services; and

2.

workers cooperative owned and managed by

people who work in the business.

The Act further stipulates that a service cooperative must also enter into at
least 51 per cent of its transactions with its members.

Types of Service
Cooperatives

Marketing and supply cooperatives

Consumer cooperatives

Housing cooperatives

Savings and Credit cooperatives

Namibia Savings and Credit

Cooperative

The Namibia Consumer Protection Group is

proposing the establishment of the
Namibian Savings and Credit Cooperative.

The S&C Cooperative will act as a financial

institution, and have the specific objectives
to encourage savings and provide loan
services.

Objectives
a)

promote the economic and social interest of its members by providing

effective services to its members according to sound business principles;

b)

have non-discriminatory voluntary membership;

c)

be democratic and controlled by its members;

d)

entitle every member to have one vote regardless of the number of

shares owned;

e)

provide services be primarily to members;

f)

limit the dividends so most profits are kept for the functioning of the
cooperative; and

g)

provide ongoing membership education.

Establishing a Cooperative

Members must be
at least 18
a citizen of Namibia, or ordinarily resident of
Namibia

A primary savings and credit service

cooperative shall be formed by at least a
seven members. The cooperative shall be
governed by its by-laws.

By-laws of the cooperative

These by-laws include information regarding

the name,
address,
type of cooperative,
objectives,
nature of business and place of business and
other information as stipulated by the Act.

In addition the by-laws will include information

on the liability of its members in the case of
the proposed Savings and Credit Cooperative
the liability shall be limited.

Formation Process

At least 7 members present

Elect formation committee of at least 7

members

Formation Committee shall elect a

Chairperson, Secretary, and Treasurer

Minutes must be kept

Functions of the
Formation Committee

The committee shall

Convene meetings to advise prospective
members
Prepare the by-laws
Compile a list of its prospective members
Estimate share capital
Prepare a feasibility study
Prepare estimated Income and Expenditure, and
Cashflow Forecast
Prepare Founders Meeting

Actions To Be Taken

Sign the Register of Attendance

Elect 7 members to the Board

Board shall then meet to elect

Chairperson
Secretary
Treasurer

Appoint CEO

Next steps

Convene Founders meeting to accept

Proposed by-laws
List of prospective members
Feasibility study and financials
Written declaration
Register of members

Elect
First Board and Supervisory Committee