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The role of SACCOS in rural Tanzania

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dc.contributor.author Chambo, Suleiman A.
dc.date.accessioned 2024-07-22T06:28:15Z
dc.date.available 2024-07-22T06:28:15Z
dc.date.issued 2004
dc.identifier.uri http://repository.mocu.ac.tz/xmlui/handle/123456789/1303
dc.description Paper Presented to the 3rd Conference on Microfinance 15th – 17th March, 2004 at the Arusha International Conference Center – Arusha – Tanzania en_US
dc.description.abstract Tanzania is a microfinance country. Out of Total population of 34 mil/ people, there are almost 16 million poor people mostly depending on smallholder agriculture. As such they need financial services to sustain their small and micro-enterprises. Rural Savings and Credit co operatives offer one of the best options for organizing self-help financial services. Although the history of SACCOS dates back to 1938, enhanced promotion came after independence. But in 1976, the co-operative movement was disbanded dissolving 150 rural SACCOS, the National Co-operative Bank, the Savings and Credit Co-operative Union league of Tanganyika and the Co-operative Union of Tanganyika. Pressure caused by the absence of co-operative marketing infrastructure after the dissolution of co-operatives, forced the government to re-establish the marketing cooperative movement in 1982 but without a sound development of rural SACCOS. Marketing co-operatives were allowed to run a financial structure known as the Rural Savings and Credit Schemes. The two however could not co- exist due to lack of management capacity and demotivation resulting from the past history of government control and interference into the affairs of co-operatives. The later years of financial services liberalization, saw the emergence of rural Savings and Credit Associations (SACAs). SACCOs and SACAs are different and similar in many ways, but they have one common demoninator-They are both people owned financial institutions organized coherent management and governance system, SACCOs and out to propel a more stable status than SACAs. Invariably, SACAs are viewed as experimental and transitional institutions for small farmers to practice the best ways to become members of Co-operative SACCos. Although SACCOs and SACAs operate under difficult technical, professional and poor commodity production conditions, they are still economically and socially viable institutionas in rural Tantania. SACCOs and SACAs have carried out a number of innovations and gained some operational successes. They also face the challenges of professional management, product development and outreach. On the other hand, there are a number of openings that give SACCOs and SACAs a high degree of future success. These include a positive policy and legal framework, educational, audit and a commercial banking infrastructure that can sustain a viable rural financial services development which can grow from the village to the national and East African financial co-operative systems. en_US
dc.language.iso en en_US
dc.publisher Co-operative College Moshi en_US
dc.subject Tanzania en_US
dc.subject Microfinance en_US
dc.subject Population en_US
dc.subject SACCOS en_US
dc.subject SCULT en_US
dc.title The role of SACCOS in rural Tanzania en_US
dc.type Working Paper en_US


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