Members of Iemas Financial Services (Co-operative) Limited celebrate a record benefit year
Iemas members receive R109.8 million in benefits in 2012!
The main benefit of doing business through a Co-operative is the fact that members share in the profits of the Co-operative because they own the Co-operative! Iemas members will receive R109,8 million in benefits for the 2011/2012 financial year. This includes the amount allocated to benefits and also the interest on members’ reserve funds. This is more than 50% of Iemas’s total net profit.
The United Nations has proclaimed 2012 as the International Year of Co-operatives, to place emphasis on this important business form. Co-operatives are enterprises that put people at the heart of their business and not capital. They follow a broader set of values than those associated purely with making a profit.
Because Co-operatives are owned and controlled by their members the decisions taken by Co-operatives balance the need for profitability with the needs of their members. Co-operatives share profits among their member-owners on the basis of how much they use the organisation, not on how many shares they hold.
“Thanks to the support of Iemas members, the Co-operative is able to allocate R109,8 million to members as benefits and interest on savings funds. This year Iemas also celebrated its 75th birthday, and who could ask for a better gift than the opportunity to celebrate the highest allocation of member benefits in the history of Iemas,” says Johan Nel, CEO of Iemas Financial Services.
Iemas was established in 1937. Today, the Co-operative provides financing and insurance services to employees of more than 600 employer groups across South Africa. Iemas’s product portfolio consists of vehicle finance, loans, short-term insurance, life insurance and the Iemas purchase card.
“In the midst of a difficult economic climate we consider ourselves fortunate to be growing and performing well. In South Africa, Co-operatives are arguably the most closely representative business model to the concept of Ubuntu. We hold true to our Co-operative principles and therefore our members receive the biggest benefit,” says Nel.
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 2011/2012 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.
