Investment Clubs In Zambia Can Create 20,000 Jobs Within 2021

 

An investment club is a group of people who come together with the intention of saving money to invest. In so doing, they generate returns for their members and help them become, financially free. Indeed, an investment club where a member starts with K. 5 million, and which focusses on every member saving additional K. 100,000 every month, and focuses on investment returns of 3% per month, will, within 10 years, return to every member K. 285 million, which, when fixed at 10% a year with government treasury, will offer the members K. 2m per month, passive income, in eternity.

On the other hand, investment clubs also enhance their members’ knowledge through information sessions facilitated by experts, and they enhance members’ networks. Further, they also help members’ social affairs by providing companionship in times of happiness, such as weddings, job appointments or graduations, and in times of sorrow, such as during divorce, sickness or death. 

However, one other area which has not been addressed so far is job creation. And this could be alluded to the present lack of structures in investment clubs. After all, it takes systems to create wealth and jobs.

In his book on investment clubs, Making Money Together: Dichol Dimo’s Investment Clubs Manual, he writes about the engine of the investment club, the super employee, the chief operations officer of the investment club, otherwise called the club administrators.

In that book, he proposes a new job description, investment club administrator. The soul of the club. The engine of the investment club. The fuel of the investment club.

The investment club administrator heads the management committee, and or all staff of the investment club, and is in charge of operations of the club.

The investment club secretary can be seen as the chief operations officer. The one who knows everything, the laws, the policies, the membership, the contributions, the entrants and exits, everything.

Most investment club members are very busy, and may forget activities, duties, roles, or to attend meetings of pay their dues. It is the role of the secretary/administrator, to make this happen.

Consequently, it is advisable to remunerate/ pay the secretary an allowance or salary from the get-go.

Further, it is advisable that once the club is big enough, the secretary should be a non-member, an employee, a third party, purely working for the club.

From experience, clubs with administrators who are paid to follow up on the members learn more, network more, invest more, and generally, achieve more.

  The secretary is responsible for the following duties:

¥        Making sure that all documentation are available, and upto date, including club policies, by laws, legal registrations, and related documents like membership forms, loan forms, investment forms, etc.

¥        Update member details, including next-of-kins, beneficiaries, contributions, dividends, loans, portfolio, etc.

¥        Ensure communication is sent to all members, stakeholders, and regulators, including lawyers, auditors, accountants, and banks, such as meeting dates and venues, agenda for meetings, minutes of meetings, thank you notes to visitors and trainers, and partners, etc.

¥        Ensure regulatory compliance such as taxes, legal, return fillings, member tax returns and filings, licenses, etc.

¥        Carry out accounting, banking, reconciliation, and reporting, helped by the club advisors such as auditors, accountants and lawyers.

The average pay for a club administrator is K. 300,000 basic salary (including taxes) and allowances of K. 50,000 per week, for transport, lunch, and airtime for communication.

I strongly urge all investment clubs in Zambia to employ investment club administrators.

Now, Zambia currently has approximately 40,000 associations and groups. This means that, if only half of them were to become investment clubs, and employ administrators, we would create 20,000 jobs in the year 2021.

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ZANAICA is promoted and hosted by Twende, an on-demand platform and Zambia’s first superapp, that also offers motorcycles (bodabodas) and tricycles (tuktuks), on lease to own, hire purchase model. Twende promotes investment clubs as an initiative to promote savings and investment culture in Zambia. To get free investment club training, do not hesitate to contact us on facebook at https://wa.me/+254103242604, or https://chat.whatsapp.com/HNosGG0OmdWHvXnFHVSLoh or email us at zanaica@twende.store or visit Twende offices at Manda Hill, Plot 271/C.