BUSINESS PLAN

2013 - 2017

Songambele Savings and Credit

Cooperative Society Limited

Prepared by The Pwani Project

P.O. Box 89

PANGANI

1
TABLE OF CONTENTS

ACRONYMS ............................................................................................................................. 3

1. EXECUTIVE SUMMARY ................................................................................................... 1

2. INTRODUCTION ................................................................................................................. 1

3. BACKGROUND ................................................................................................................... 2

4. BUSINESS DESCRIPTION.................................................................................................. 2

5. CURRENT PRODUCTS ....................................................................................................... 3

5.1 Loan Products .................................................................................................................. 3

5.2 Composition of Loan Portfolio (2011 & 2012) ............................................................... 3

6. NEW FORECAST IN POTENTIAL LOAN PRODUCTS ................................................... 4

7. VISION, MISSION AND OBJECTIVES ............................................................................. 4

8. OPERATING PRINCIPLES ................................................................................................. 5

9. KEY STRATEGIES .............................................................................................................. 6

10. VALUES AND GOALS ...................................................................................................... 7

11. SWOT ANALYSIS ............................................................................................................. 8

12. MARKET ANALYSIS ........................................................................................................ 9

12.1 INTERNAL ANALYSIS ............................................................................................. 10

12.2 EXTERNAL ANALYSIS ............................................................................................ 12

13. HIV/AIDS PANDEMIC .................................................................................................... 14

14. FINANCIAL PROJECTIONS ........................................................................................... 16

15. IMPLEMENTATION ........................................................................................................ 17

16. CONCLUSION .................................................................................................................. 18

2
ACRONYMS
SACCO Savings and Credit Cooperative Society

FOSA Front Office Savings Activities

BOSA Back Office Savings Activities

ICT Information Communication Technology

MFI Microfinance Institution

SWOT Strengths, Weaknesses, Opportunities and Threats

PAR Profit at Risk

TCMP Tanzania Coastal Management Partnership training

SCCULT Savings and Credit Cooperatives Unions League of Tanzania

3
1. EXECUTIVE SUMMARY
This business plan covers five years and provides detailed explanations of actions proposed
to accomplish the primary functions of the Savings and Credit Cooperative Society (SACCO)
to fulfill its members economic and social needs. In preparing this business plan, the Board
considered the strategic directions of the Society services and has determined that the Society
business plan provides an overview of the SACCO and identifies the strategic issues and
goals set out for the next five years. Therefore, the Board is accountable for the preparation of
this plan and for the achievement of the specific issues and goals contained therein.
The business plan is an integral part of the management and oversight of the Societys field
of membership expansion as it establishes the SACCOs goals and objectives for the
proposed expansion. The plan forecasts market demand, member base, competition and
economic conditions variations.

There are four important benefits of having a formal business plan. First, it will be an
essential part of any request for financing and improves the chances of getting desired
funding. Second, it can serve as a guide for policies and actions for a firm over a number of
years. Strategies and statements are well thought-out, unambiguous and achievable. Third,
the process of preparing the plan will enable, if not force, Society members to focus on issues
that are essential for the future success the business. Fourth, the plan will identify the role of
the SACCO in environmental conservation and sustainable use of natural resources.

The task, therefore, is to focus on the key cooperative principle: Members own and control
SACCOs. To achieve its goals, the Society will strengthen capacity as the SACCOS need to
be commercially viable enterprises, able to survive and prosper in the marketplace.

2. INTRODUCTION
The Songambele SACCO has nine Board members. Three supervisory committee members
received business plan training from the cooperative officer and TCMPPwani, after which
they established goals and a strategy for the coming five years. The board members
considered short-term actions needed to prepare the Society to meet its long-term objectives
and assessed long-term impacts of short-term plans. In addition, because a SACCOs main
business is money, the plan must provide a basis for financial strategy and a control device
against which to compare actual progress. Findings from an internal review formed the basis
for the plan objectives and portrayed the Societys strengths and weaknesses.

The board members participation in setting and implementing the strategies indicates that
they are responsible for accomplishing them and will use measurable parameters to monitor
performance. This approach helps the SACCO attain a higher level of preparedness in the
face of external challenges. This helps to increase levels of operational efficiency that will
result in better service to its customers.

1
This business plan was established using a participatory process that involved executives,
Board members, supervisory committee members and village leaders.

Initially, an internal scan helped to assess the adequacy and completeness of systems and
procedures; to identify the operational challenges facing the SACCO; to give
recommendations; and to establish the SACCOs financial position. The internal scan
reviewed all operational areas including performance management and accounting,
governance and administration, Back Office Savings Activities (BOSA) and internal audit.

The process included the following approach: the Board, supervisory committee and village
leaders participated in a two-day workshop that included discussions among the groups
followed by a review of SACCO and cooperative department documents and concluded with
brainstorming sessions and group discussions to formulate the business plan.

3. BACKGROUND
The law established Songambele SACCO Ltd. Its founder members include beekeepers, food
vendors and crab fattening groups in Pangani villages. The Tanzania Coastal Management
Partnership (TCMP), the Savings and Credit Cooperatives Unions League of Tanzania
(SCCULT) and the district cooperative department facilitated its implementation. In addition,
TCMP provided 2,000,000/= in seed funding on the agreement that the capital should not be
used in environmental activities. The starting capital was 200,000/= for 20 members. The
district commissioner officially opened the SACCO in 2008. It currently has 98 members
with a total capital of 22,000,000/=.

A nine-member Board, led by a chairperson, as well as a manager and a treasurer govern the
SACCO. The Board worked with stakeholders to develop a biodiversity conservation mission
targeting sustainable use of coast and marine resources as one of its objectives.

4. BUSINESS DESCRIPTION
Customers of the SACCOs micro-finance services are residents from Kipumbwi ward and
other near villages.

Products and Services: Loan and savings facilities

Services: The Society currently provides BOSA. A long-term strategy is to introduce Front
Office Savings Activities (FOSA) in which members will walk in and get full banking
services at a service counter. Members deposit their cash into savings accounts at the
SACCOS office. For credit activities, the Society offers loans to eligible members at an
interest of three percent per month based on the declining method.

2
5. CURRENT PRODUCTS
5.1 LOAN PRODUCTS
Business Loans

This is a planned loan disbursed by the loan committee once in a month. The highest amount
disbursed is two times the savings held in the Society by the respective member. Currently
repayment period is not to exceed 24 months with the interest rate of three percent based on a
declining balance. The aim of this loan is to assist members in their business development
projects.

Education Loans

This loan is granted to members in an amount not exceeding 2,000,000/= to the respective
member. The interest rate is three percent on a declining balance method with a maximum
repayment period of 12 months.

Emergency Loans

This loan is granted to members based on the type of emergency with a maximum amount of
Tshs 100,000/= and is charged a six percent interest rate with a repayment period not to
exceed one month. The aim of the loan is to assist members facing an unexpected personal
problem.

Agriculture Loans

This loan is granted to members to support their agricultural activities. The loan repayment
period six months with an interest rate of 18 percent.

NB: Loan defaults are charged at three percent.

5.2 COMPOSITION OF LOAN PORTFOLIO (2011 & 2012)

Loans disbursed during the above quoted years according to each type of loan were as shown
on next page:

3
 Type of loans and amounts taken

6. NEW FORECAST IN POTENTIAL LOAN PRODUCTS

Business loan

In future, the SACCOS intend to introduce the other new loans products such as a Business
loan. The Society intends to introduce such type of loans to enable members improve their
working capital. This will include coastal livelihoods and other business based on the
efficiency and sustainability of the business. The SACCOS expected to assess the members
loan needs and their security/mortgage and apply for the loan in favor the members to other
financial and social security funds.

Agricultural loan

In addition, agricultural loans will be strengthened as the SACCO intends to enable members
who are interested in agricultural activities to purchase agricultural inputs and be able to
repay the loans as per agreement. The loans provided after a thorough feasibility study has
been done.

Membership

The Society currently has 98 and 2 groups members and the number will increase as
membership is opened up to the public and planned internal promotional activities are
implemented. Membership based on:

Democratic Style

Equal rights exist for each member to use all the services of the Society, which are available
only to members. Members are also encouraged to serve actively as volunteers in the running
of their Society as well as voting and deciding on its organization and policies.

7. VISION, MISSION AND OBJECTIVES

In developing its mission statement, the SACCO considered the economic, financial and
technological trends in the Society system nationally and regionally and the financial industry
as a whole. The Society identified its internal strengths and challenges and external

4
opportunities and challenges. Finally, the SACCO identified those areas that it could
reasonably influence:

Vision

Our long-term vision is to become a SACCO that is competitive, viable and sustainable with
capacity for fulfilling members economic and social needs.

Mission

To be a strong, member-only financial cooperative providing innovative financial services

and products while increasing the communitys savings, providing loans and offering
financial education to support to our members and their communities in poverty alleviation
efforts.

SACCO Objectives

Songambele SACCO is committed to being a sound, progressive and growing financial

institution by providing the members with superior financial services and products while
maintaining our traditional values of sustainable use of marine and coastal resources.

To promote, attract and encourage 100 new and active memberships, 10 percent per
year.
To provide financial products and services that meet member needs to compete
effectively in the marketplace.
To manage effectively the physical and financial resources of the SACCO, to
maximize loaning while reduce bad loans to three percent.
To provide an environment that will attract and develop coastal biodiversity
conservation through enhancement of sustainable livelihoods.
To maintain a SACCO structure that upholds its vision with integrity and good
leadership.
To advocate for good governance practices and abiding by the cooperatives principles
for our SACCOs growth

8. OPERATING PRINCIPLES
To provide services in a professional, personal and competitive manner
To provide a climate in which SACCO members can achieve outstanding
performance and personal economic growth.
To support both social and economic advancement of our community
To continue the emphasis of the SACCOs strength through growth of capital and
maintaining a surplus

5
 All of which shall be supported by a program of excellence in products and services
while maintaining high standards of ethics and integrity.

9. KEY STRATEGIES
The key strategic pillars are fundamental business drivers that the SACCO must focus on to
maximize returns to its members and to meet the expectations of its stakeholders. The
strategies, organized by group are:

Financial Performance Strategy

To increase Society revenue by 25 percent annually

To increase benefits from loans products.
To establish FOSA
To enhance cost-effective management programs.
To review the minimum monthly deposit contribution and shares every two years
To develop an operational efficiency strategy
To establish a fully operational accounting system by 2018
To ensure a fully computerized operation by 2018
To enhance ICT competence among all committees/members
To mobilize resources to facilitate full computerization
To develop/enhance Membership Growth and Management Strategy
To recruit new and retain existing membership
To develop two new SACCO products and two services annually.
To mobilize and assess current levels of member satisfaction
To ensure a committed board, supervisory committee and executives who will assist
the Society in achieving its vision and mission.

Products and Services Strategy

To develop two new products and services to meet members needs.

To review current product offerings and to establish new products
To improve loan turnaround time to match best industry practice.
To review loan policy to ensure additional security for loans from other financial
sources.
To develop effective credit administration strategy
To achieve a loan recovery rate of 95 percent per annum.
To establish and enhance the SACCOs risk management systems by 20 percent per
annum

6
 To encourage members to save and take loans from the SACCO
To increase accountability in the Loan Management Committee
To frequently review loan interest rates.
Marketing and Development of the New Products Strategy

To develop a comprehensive marketing plan.

To allocate member recruitment targets to existing members.
To enhance corporate brand image
To establish comprehensive communication channels with members.
Leadership and Governance Strategy

To develop and enhance training programs

To comply with all legal and regulatory requirements, e.g. code of conduct, SACCO
Act and regulations.
To promote positive organizational culture
Enhancement of coastal management Strategy

To establish sustainable livelihoods including seaweed farming, crab fattening and

beekeeping, etc.
To restrict use of credits taken from SACCO in biodiversity destructive activities
To incorporate both genders in sustainable livelihoods
To advocate for environmental conservation efforts in village meetings

10. VALUES AND GOALS

Values

The Songambele SACCO values include integrity (truthful, accountable), respect (equality,
dignity), excellence (highest standards), flexibility (interactive); safety and security (protect
your funds and personal information).

Songambele SACCO Ethics

The SACCO in its operations will adhere to the following ethics:

Member Driven

We are fundamentally committed to serving our members, who are our foundation, by
providing the highest standard of individualized service, always placing members first.

We recognize the importance of listening closely to our members and communities to better
understanding their unique requirements, anticipating their needs and providing creative
solutions.

7
Cooperation

We seek opportunities to allow members to contribute to the Society.

We honor each persons ability to create and contribute toward the goal of delivering quality
member services and innovative products, individually or as part of a team, through open
communication and mutual trust.

Innovation

We support the courage, creativity and discipline needed to lead change and bring value to
the membership and the Society.

We encourage creative thinking and continuous improvement because we must be better than
our competition every day in order to attract and retain our members and employees.

Education

We encourage continuing education and training for members, Volunteers, and employees,
recognizing that knowledge build confidence and enables innovative thinking and wise
financial decisions.

11. SWOT ANALYSIS

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a tool used to
provide a general or detailed snapshot of a SACCOs health. Normally, every business needs
a periodic check-up to diagnose and fix what has worn, what is on the verge of breaking
down or what is already broken and needs replacement to keep the business robust.

8
The Songambele SACCOs SWOT analysis sought to identify key underlying issues:

Table 1. SWOT Analysis

Strengths Weaknesses

The Society has enormous numbers of members Membership with a low demand for loans
Increase in interest rate on loans increase revenue Inadequate ICT system that can meet the
for growth of the Society needs of the SACCOS members
Inadequate professional executives
Presence of the low rate of default loans Slow process for various loan product
The SACCO has good reputations and a positive offerings.
corporate image. Lack of certified collaterals for the some
Trust and good will of members and other Stakeholders loan products
Adequate space for future expansion of the Societys Inadequate communication between
new business lines members
Accountability and transparency Delays in informing guarantors when
members default and penalty charges
Education and trainings in business skills and
entrepreneurship Low attendance in the SACCO meetings
Ability to plan sustainable business activities
Opportunities Threats

Product and services development by diversification like Competition from other micro finance
M-PESA and electronic banking institutions and informal moneylenders
Expansion of membership base geographically to (FINCA, PRIDE, VICOBA)
capture other villages Members over-burdened with debts, this
Presence of other financial institutions and Social limits their ability to borrow.
Security Funds willing to work with SACCOs Climate and weather instability in affects
Awareness and publicity campaigns in the sustainable agriculture
use of available coastal and marine resources Lack safe for keeping money
Use of additional collateral to include title deeds to Poor timing of inspection and auditing
disburse higher loan amounts Lack of insurances covering loans taken
Better relationship management with member by individuals
organizations Degradation of coastal and marine
Strengthened stakeholder/partnerships relationships resources
such as TCMP/district government Low attendance of members in the
SACCO meetings

12. MARKET ANALYSIS

A marketing plan provides realistic support that the SACCO has reasonable prospects to
achieve revenue projections, member volume and key marketing and income targets. The
Songambele market analysis used the most current available data. It includes a discussion of
the major planning assumptions: products, economic and competitive components used to
develop plans, objectives and the basis for the assumptions.

9
Product Strategy

The Society planned to continue offering the following products and services,

Emergency loan
Business loan
Education loan
SACCOs will offer new products and services over the next five years, including FOSA,
agricultural loans and large developments loans by linking its members to other financial
sources.

12.1 INTERNAL ANALYSIS

Membership

Membership in the SACCO is open to all villagers in the Kipumbwi ward until 31 December
2012. Membership in the SACCO reached 98 over two groups The projected membership
growth shown in Table 1 below; is a result of opening membership to the public and member
recruitment of additional sisal plantation workers. In addition, the new loan products and
quality services will stimulate membership growth. The projection anticipates an increase of
between 20-40 percent per year for the term of the business plan.

Table 2. Membership Growth Projection

Year 2011 2012 2013 2014 2015 2016 2017

Members 110 100 120 160 200 240 300

10
Savings

The SACCO aims to increase savings each year as shown in the schedule in Table 3. The
projection is for a 42 percent increase per year from new and old members who have not been
saving monthly.

Table 3. Savings Growth Projection in TSCH

Year 2011 2012 2013 2014 2015 2016 2017

Savings 6, 320,000 5,076,060 7,208,005 9,514,566 13,510,683 19,185,170 27,842,941

Loan Growth

The society aims to achieve a growth rate of 40% per year for the term of the plan with the
introduction of new products and anticipated growth in membership

Table 4: Loan Portfolio Statement and projections (TZS)

Loan [Tshs.] 2011 2012 2013 2014 2015 2016 2017

Business loan

Start of Year 19,070,000 32,240,000 40,000,000 55,000,000 75,000,000 90,000,000 105,000,000

Repayment
21,491,250 27,067,342 30,000,000 41,250,000 56, 250,000 67,500,000 78,750,000
(75%)

Emergency 2,300,000 3,000,000

150,000 540,000 1,000,000 1,400,000 1,900,000
Loans

1 to 90 days 2,000,000
130,000 500,000 800,000 1,200,00 1,700,000
(80%)

Education loan 500,000 4,700,000 6, 000,000 8,000,000 10,000,000 12,000,000 15,000,000

Repayment 450,000 3,000,000 4,000,000 6,000,000 8,000,000 10,000,000 13,000,000

11
Profit at Risk

The Society is proud of promising loan recovery in spite of members voluntarily paying
loans. The SACCO Profit at Risk for the last 360 days is just six percent

Efficiency and Profitability

Currently SACCOs charge interest on loans of three percent based on the declining method.
Using the 2012 reports, the theoretical interest received was TZS, 3,744,515/=, indicating that
the Society has a good loan recovery mechanism.

Portfolio Quality

The SACCOs as financial institutions have advantages when it comes to loan management.
The ledger cards controlled by the Treasurer manage all individual borrowers loan
transactions. This method contributes to the promising loan management competency of
Songambele SACCOs. Another positive indicator is the collection rate of 94 percent on time
(portfolio at risk six percent).

Competitive Advantage

With a growing number of SACCOs looking to expand their membership, Songambele

SACCO cannot ignore the fact that increased competition among SACCOs is inevitable.
Songambele, as a rural microfinance institution, has faced various competitors, including
microfinance banks, FINCA, PRIDE and VICOBA. In ensuring, the SACCO remains
competitive:

Charges lower interest rates on loans.

Creates different loan products to meet members need
Allows money transfers through MPESA, TIGO PESA etc
Reduces the waiting period to get a loan
Extends service provision hours/days per weeks
Is introducing FOSA in a village with no banking services
Retains much of its profit for future SACCO growth and dividends

12.2 EXTERNAL ANALYSIS

Market Place Analysis

The Tanzanian economy is going through phenomenal changes; the transition from a planned
economy to a free market economy has been awakening in people a desire for social and
financial rights and independence.

People are engaging more in establishing small businesses to supplement their incomes and
to mitigate unemployment. The demand for affordable credit with fewer awkward lending

12
conditions is very high as evidenced by the mushrooming of formal and informal
microfinance institutions in the country. This trend is likely to continue as market
liberalization, globalization and wealth-increasing effects take place.

Marketing Strategies

In order to achieve its financial goals, Songambele prepared to address the obstacles to
growth: Specifically, the SACCOs work to alleviate social and economic problems while
taking advantage of its strengths and opportunities in the marketplace. These strategic
objectives are stipulated below:

Market Focus

To this end, the SACCO will continuously collect feedback to develop or refine appropriate
financial services and products that address the changing needs and wants of current and
potential members.

Service Delivery Strategy

The SACCO will improve service delivery by addressing members needs, such as timely
credit provision and/ or refunds when needed. This will also consider; membership records,
proper accounting and enhancing customer care through training and establishment of a
customer feedback mechanism.

Build Capital as a Percentage of Assets

The SACCO will pursue the improving Assets Quality and Composition structure that
maximizes earnings and reduces holding of resources in assets not directly related to
generating more business or have a risk of non-repayment.

Improving Institutional Capital

To strengthen the SACCOs capital base, members will be educated on the importance of
retaining reasonable percentages of profit for future growth. This will address the SACCOs
challenge in increasing institutional capital (retained earnings), which is the members
preference for cash today rather than wealth tomorrow.

To Build Member Loyalty

The SACCO will work diligently to develop a strong relationship with members and to
provide training to committee members and staff. This will build member loyalty.

Sustainable Livelihoods

13
The SACCO will continue to emphasize the establishment of sustainable livelihoods tied to
good natural resource use practices, which include beekeeping, baking and household food
services and best agriculture practices.

13. HIV/AIDS PANDEMIC

Over past 25 years, HIV/AIDS has caused unbearable illness and premature death in people
during their prime years of life and has devastated members and their families: Further,
HIV/AIDS has complicated efforts of SACCOs to fight poverty, improve health and promote
development by:

Diminishing a persons ability to support, work and provide for his or her family: At the same
time, treatment and health-care costs related to HIV/AIDS consume household incomes. The
combined effects of reduced income and increased costs impoverish individuals and
households.

Deepening socio economic, natural resources depletion and gender disparities: Women,
particularly in coastal areas, face high risk of infection and have few options in providing for
their families. HIV/AIDS affects children through parental illness or death, resulting in loss
of education and poor parental care.

Lessons Learned:

SACCOs must work hand in hand in the fight against HIV/AIDS, link members with health
insurance and provide a place for those with HIV/AIDS to access credit. This will make
SACCOs safe, reliable savings and lending institutions.

14
**

Figure 1: Management and Administration

ORGANIZATIONAL STRUCTURE

ANNUAL GENERAL MEETING

SUPERVISORY
COMMITTEE

BOARD COMMITTEE

MANAGER
LOAN COMMITTEE

TREASURER

15
Management Team

The management team consists of the board members and executives. Currently the society
has employed nobody to assist the management team to run the SACCOs day-to-day
activities.

BOARD MEMBERS

14. FINANCIAL PROJECTIONS

Income statement
Projected balance sheet
Cash flows projection
Summary of Financial Statements and Projections

Table 5, next page, shows the Societys financial statements for 2013 to 2017. It illustrates
the strength of the financial structure and the thickness of assets. The major income derives
from interests charged on financial business with members.

16
 Table 5. Songambele Savings and Credit Cooperative Society Financial Statements
(2013 to 2017)

2010 2011 2012 2013 2014 2015 2016 2017

Balance sheet
Actual Actual Actual Projection Projection Projection Projection Projection

Fixed assets 1,580,000 0 36,000 350,000 0 700,000 500,000 253,500

Current assets 6,657,799 4,221,155 8,356,177 10,598,025 12,839,873 11,365,000 9,657,890 10,157,890

Current Liabilities 1,723,828 1,771,250 32,300 1,580,050 3,160,550 2,364,060 2,358,900 5,897,000

Net Current 4,933,971 7,298,990 4,260,890

2,449,905 8,323,877 9,017,975 9,679,323 9,000,940
Assets

Net assets 6,513,971 2,449,905 8,359,877 8,667,975 9,679,323 9,700,940 7,798,990 4,514,390

Financed by 6,513,971 2,449,905 8,359,877 9,367,975 12,839,873 9,700,940 7,798,990 4,514,390

Income statement

Total income 1,486,471 2,163,805 4,396,217 6,594,326 8,792,435 10,990,544 13,188,653 15,035,064

Total expenses 556,900 782,800 1,675,400 1,998,500 2,321,600 2,646,624 2,964,219 3,290,283

Net income 929,571 1,381,005 2,720,817 4,595,826 6,470,835 8,343,920 10,224,434 11,744,781

15. IMPLEMENTATION
The implementation plan must form an integral part of the business plan. The board and
executives must have a clear idea of the practical impact of the business ideas.

Suggested Steps

Establishing the business objectives

Defining and assigning the tasks needed to attain the objectives set

Setting out a timescale

Monitoring activities and progress
Objectives

The objectives must be set out clearly and briefly, with the planning of key stages and
realistic, challenging but achievable goals.

17
Tasks

Individual tasks must be simple and clearly stated, and not be oppressive. The results
predicted should outweigh the time and effort devoted to the tasks.

Timescale

Each task should have a clear timeframe, and the result should clearly display the activities,
and deadlines, necessary to perform that task.

Policy Amendments

This policy is subject to change by the board members under the approval of a general
meeting in whole or in part, from time to time when considered necessary in the interest of
the SACCOs growth and the members needs.

Monitoring Activity and Progress

The monitoring process will highlight and rectify deficiencies. Monitoring plans will be
developed for product planning, marketing, financial issues and human resource
management.

16. CONCLUSION
Over the past two years, the Songambele SACCO has made remarkable progress towards its
long-term goals. It will continue to build a strong and more competitive micro financial
institution that provides quality service to its members and a climate in which members can
fulfill their personal, social and economic growth.

18
 SONGAMBELE LIMITED Cash Flow Statement & Projections

ITEMS ACTUAL PROJECTIONS

Cash Inflows 2011 2012 2013 2014 2015 2016 2017
Opening Balance 6,050,197 12,097,114 11,910,290 5,353,312 (7,447,356) 3,205,892 8,425,971

Savings from Members 4,530,200 7,466,250 10,378,088 13,283,953 16,206,423 19,123,579 21,992,116

Repayment from Loans 21,491,250 27,047,314 32,456,777 37,974,430 43,670,595 49,347,772 55,269,505
Income from Financial Investments
(Interests) 3,256 0 4,500 5,000 6,000 6,000 7,000
Income from Investment Building 0 0 0 0 0 0 0

Bank Loan 0 0 0 0 0 0 0
Other Income(Sales of Shares) 523,000 453,000 520,950 588,900 659,568 700,000 900,000
Total Inflows 32,597,903 47,065,690 55,270,605 57,205,595 53,096,230 72,383,243 86,594,592

Cash Outflows:
Loans to Members 19,720,000 33,480,000 47,206,800 60,896,772 47,206,800 60,896,772 74,294,068
Interest Expenses 0 0 0 0 0 0 0
Provisions 0 0 0 0 0 0 0
Financial Costs 21,300 140,300 259,555 389,333 259,600 300,000 398,000
Building Expenses 0 0 0 0 0 0 0
Administrative Costs 476,000 1,320,500 2,165,520 2,165,520 2,165,520 2,500,000 3,000,000
Purchase of Shares 0 0 0 0 0 0 0
Loan Repayment 0 0 0 0 0 0 0
Other Expenses 285,500 214,600 285,418 356,773 258,418 260,500 456,900
Total Outflows 20,502,800 35,155,400 49,917,293 64,652,951 49,890,338 63,957,272 78,148,968
Net Cash Flow 12,095,103 11,910,290 5,353,312 (7,447,356) 3,205,892 8,425,971 8,445,624

19