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 R135 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 2015 financial year the benefits allocated to members total R135 million. These benefits result in a 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.

"Our financial results are satisfactory, notwithstanding a macro environment in which economic, social, political and consumer issues have left its mark on most sectors of the South African economy including severe business restructuring among many of our participating employers” says Johan Nel, CEO of Iemas Financial Services.

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