Some Determinants of Success or Failure of Emerging SACCOS in Tanzania
Downloads
This paper identifies and analyses factors associated with the success or failure of the emerging Savings and Credit Cooperative Societies (SACCOS) in Tanzania Mainland. Multi-stage sampling technique was employed to come up with four regions among ten purposively selected for the study. Four research questions were formulated to guide the study. 156 respondents participated in the study and data were analyzed using IBM SPSS Statistics version 20.0 software. Principal
component analysis and logistic regression analysis were used in the analysis. The study revealed that,lack of access to loans for individuals, a need of soft loans for business and non business; and pledges for loans from government, prominent politicians and other stakeholders were the main factors that led to the SACCOS inception. It was shown that accepting ‘non members businesses, having and adhering to conflict management strategy, number of members at initial stage and employing fulltime professional management made a significant contribution to success performance of SACCOS. Moreover, rural SACCOS have shown poor performance as compared to SACCOS operating in urban areas while education level has shown a positive relationship with SACCOS’ performance. The findings also showed that lack of commitment to members, lack of patience, shifting to other areas and loan default were the major reasons for members’ withdrawal from SACCOS. This study recommended encouraging female members for SACCOS’ leadership since they have shown success performance in most of the SACCOS they lead. Also, this study finding recommended giving priority to female members in borrowing.
Acharya, Y.P. and Acharya, U. (2006), “Sustainability of
MFI from Small Farmer’s Perspective: A case study of rural
Nepal”, Institutional Review of Business Research Papers,
Vol. 2, No. 2.
Adongo, J. and Stork, C. (2005), “Factors Influencing the
Financial Sustainability of Selected Microfinance
Institutions in Namibia”, NEPRU Research Report No. 39,
the Namibian Economic Policy Research Unit. Alvin C.
Rencher (2002), “Methods of Multivariate Analysis” A John
Wiley & Sons, Inc. Publication.
Bibby, A (2006), Tanzania’s Cooperatives Look at the
Future, ILO, TanzaniaDong, F. and Featherstone, A. (2004),
Technical and Scale Efficiencies for Chinese Rural Credit
Cooperatives: A Bootstrapping Approach in Data
Envelopment Analysis. WorkingPaper 04-WP 366, Centre
for Agricultural and Rural Development, Iowa State
University.
Hosmer - Lemeshow (1989), Applied Logistic Regression
nd Edition.
ICA (1995): website- www.ica.coop/en/what.co-operative
Kushoka, I. (2013), Sustainability of an Employee Based
Savings and Credit Co-Operative Society: A Case of Dar Es
Salaam City Council SACCOS Tanzania. American Based
Research Journal,2(7), 88-94.Magali, J.J and Lang’at J.K, (2013), Impact of Corporate
Government on Efficiency and Sustainability of the Best
Rural SACCOS in Tanzania, Global Journal of Commerce
and Management Perspective
Magali, J.J. and Pastory, D. (2013), “Technical Efficiency of
the Rural Savings and Credits Cooperative Societies in
Tanzania: A DEA Approach” International Journal of
ManagementSciences and Business Research, 2(12).
Magali, J.J. and Qiong, Y. (2014), “Commercial Banks Vs
Rural SACCOS Credits Risk Management Practices in
Tanzania”Journal of Economics and Sustainable
Development, 5 (2).
Maghimbi, S (2010), Cooperatives in Tanzania Mainland:
‘Revival and Growth’, ILO, Dar es Salaam.
Ministry of Agriculture Food Security and Cooperatives,
MAFC (2014).Savings and Credit Cooperative Report Data.
MAFC
Nyamsogoro, D. (2010), “Financial Sustainability of Rural
Microfinance in Tanzania” Unpublished PhD Thesis,
University of Greenwich.
Nyankomo and Aziakpono, (2013), Financial Sustainability
of Tanzania Savings and Credit Cooperatives, REPOA,
Tanzania
Sexton, R.J, and Iskow, J (1988), Factors Critical to the
Success or Failure of Emerging Agricultural Cooperatives:
Department of Agriculture and Resource Economics,
University of California, Davis
Som Raj T, Vinay T and Naman S (2015), Digital Image
Data Compression By Using SVD Technique Of PCA
Method, International Journal of Engineering Research and
General Science Volume 3, Issue 3
Tesfamariam, K., Tesfay, H., & Tesfay, A. (2013), “Relative
Efficiency of Rural Saving and Credit Cooperatives”: An
Application of Data Envelopment Analysis. International
Journal of Cooperative Studies, 2(1)
Thapa, G (2006): Development A methodology for
assessment of the impact of microfinance on empowerment
and vulnerability, The second in a series of discussion
papers produced by the Asia and the Pacific Division,
IFAD. Asia and the Pacific Division International Fund for
Agricultural.
