Members’ Awareness and Perspectives on Governance Practices among Horizontally Integrated Rural Co-operative Societies in Mbinga District, Tanzania

Abstract

Co-operative societies cater for production, marketing and financial needs of members. As a strategy for achieving maximum benefits, co-operative models such as the horizontal integration of production and financial oriented co-operatives have been adopted. However, empirical studies indicate that members hardly achieve the expected benefits from the co-operatives as expected due to poor governance, fraud and embezzlement of funds by unethical staff and leaders. This study examines members’ perspectives on governance practices among the horizontally integrated co-operative societies and identifies benefits arising from integration practices. A cross-sectional research design was adopted with KIMULI and Muungano Co-operative Societies as the focal study areas. 81 members of selected co-operative societies identified through a simple random technique were interviewed. A survey questionnaire, focus group discussions and key informant interviews were used to collect data. Findings show that good leadership and management, transparency and democracy were important for successful operations of horizontally integrated co-operatives. There was a significant difference in members’ perspectives on the governance practices of AMCOs (M = 7.366; SD = 3.385; p = 0.077) and SACCOs (M = 9.171; SD = 2.609; p = 0.005) which implies that governance in SACCOs is significant unlike in AMCOs. Efficient governance organs and enhanced members’ participation in decision making were the underlying success factors in SACCOs compared to AMCOs. Thus, there is need for sensitization of good governance practices in AMCOs and members should actively participate in elections and decision meetings crucial for AMCOs performance and survival.