Proposed Formation of a Primary
Savings and Credit Cooperative
23 August 2012
A cooperative is a group of people acting
◦ meet the common needs and aspirations of its
◦ sharing ownership and
◦ making decisions democratically.
Cooperatives are not about making big
profits for shareholders, but creating value
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.
Marketing and supply cooperatives
Savings and Credit cooperatives
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.
a) promote the economic and social interest of its members by providing
effective services to its members according to sound business
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
e) provide services be primarily to members;
f) limit the dividends so most profits are kept for the functioning of the
g) provide ongoing membership education.
Members must be
◦ at least 18
◦ a citizen of Namibia, or ordinarily resident of
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.
These by-laws include information regarding
type of cooperative,
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.
At least 7 members present
Elect formation committee of at least 7
Formation Committee shall elect a
Chairperson, Secretary, and Treasurer
Minutes must be kept
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
◦ Prepare Founders Meeting
Sign the Register of Attendance
Elect 7 members to the Board
Board shall then meet to elect
Convene Founders meeting to accept
◦ Proposed by-laws
◦ List of prospective members
◦ Feasibility study and financials
◦ Written declaration
◦ Register of members
◦ First Board and Supervisory Committee