Iemas members received more than R500 million in benefits since 2010!

Johan Nel, CEO of Iemas Financial Services.

Despite a challenging external environment, Iemas Financial Services has once again proved that the co-operative business model is resilient. Co-operatives share their profits with their members and this year Iemas members will receive R127 million in benefit allocations.

Iemas’s approach to the market is unique to other service providers, as Iemas conducts its business as a co-operative and not as a company. This means that members (customers who utilise products) are the owners of the co-operative (similar to shareholders who own a company in a company structure). Iemas belongs to its members, and its members share in the prosperity of the co-operative.

In terms of the co-operative principles, profits are paid to members in the form of annual benefits. For the 2014 financial year the benefits allocated to members total R127 million. These benefits result in a large reduction in the effective interest rates that members pay on loans, which means that they have the additional benefit of paying a lower price for products and services because they channel their business through the co-operative. Members also received 6% back on their short-term insurance premiums for the year, regardless of whether they had to claim during the year or not.

"Despite economic challenges and an increasingly cost-sensitive environment the Co-operative continues to deliver sustainable growth. Even though South Africa’s economic growth is slower than anticipated, I am confident that we will achieve our strategic goals,” says Johan Nel, CEO of Iemas Financial Services.

Responsible financial lending and advice is very important to Iemas and one way we contribute towards our members’ financial savings is through the Iemas Deferred Bonus Payment Fund (DBPF), towards which a certain percentage of our members’ benefits are allocated annually. Members receive interest on the money in their DBPF. For 2013/2014 members will receive 6,5% interest on their DBPF accounts, which is a favourable rate compared to investment rates from banks.

Iemas Financial Services will continue being a caring partner to our members.