Extent of Depth of Outreach among Saving and Credits Co-operatives Societies in Mwanza and Tabora Rural Areas, Tanzania

Abstract

Savings and Credit Co-operative Societies (SACCOS) are recognised as most suited organisations to address all dimensions of poverty. Despite this recognition, the empirical findings on extent of depth of outreach (reaching the Lowest Economic Group of Poor (LEGP)) in SACCOS remain inconclusive. This study was conducted with the aim of contributing to the on-going debate. The study employed the cross-sectional survey design. Six SACCOS were purposively selected in Mwanza and Tabora rural districts. A total of 500 respondents of whom 200 were members of SACCOS and 3 were non-members were randomly selected. The structured questionnaire and key informant interview guide were employed to collect quantitative and qualitative data respectively. Microfinance Poverty Assessment Tool (MPAT) and descriptive statistics were used to analyse data. The study found that SACCOS had low depth of outreach in the study area because non-members were less informed on SACCOS’ operation and that they had deficient prerequisite funds for joining SACCOS among other reasons. The study recommends that SACCOS’ leaders in the study area should see the possibility of expanding depth of outreach through reaching more LEGP by effecting awareness programmes particularly to the LEGP. This can be done through dissemination of SACCOS education in village festivals meetings, and farmers days and exhibitions among others.