Assesment of ICT applications in savings and credits cooperative societies (SACCOS): A case of sellected saccos in Dodoma and Singida regions.

Abstract

A Co-operative society is a community organization formed by joint effort voluntarily by people of the same objectives. Its agenda is usually based on locally determined proposals whose aims are to empower citizens to realize their socio-cultural and economic capacities using locally available resources. Information and Communication Technology (ICT) is used to refer to infrastructure and product development that facilitate the collecting, storing and analysis of information that may be transmitted electronically. The viability of ICT for the improvement of human livelihoods is an idea that needs no overemphasis. The potential of ICT in the enhancement of co operative societies’ lives is human-given and is yet to be fully realized generally in developing countries’ co-operatives and Tanzania in particular. This being the case, this study has identified the problem in the realization of the power of ICT in co-operative societies, like savings and credit co-operative societies (SACCOS), being the inability of the majority of the leaders and members to realize the roles they need to play in promoting co-operative development.

This research is primarily concerned with the discovery and analysis of the effects of ICT applications in Tanzania’s co-operative societies. It is specifically concerned with the question of what has been the contribution of ICT to SACCOS’ development.

The research was conducted in Singida and Dodoma regions as the case study basing on nine (9) SACCOS. Focus group discussion, interview, observation and documentary review were the methodologies used to gather data. Both qualitative and quantitative approach methods of data analysis were used in order to increase clear understanding of different variables. The data obtained became the bases for analysis.

The uses of ICT in co-operative management practices are essential for ‘entry ticket’ to promoting co-operative development in Tanzania, Singida and Dodoma in particular. Restructuring co-operative plans to have updated information, reduced duplication work, dependence on manual information processing and storage can largely accelerate the SACCOS development. ICT can facilitate the development of co-operatives by providing easy access to market, understanding of distribution system, exposure to global market, improved information flows and communication services, and improved strategy for education and training.

The research shows that there is misuse and/or underutilization of ICT equipment and services regardless its availability. This has led to many SACCOS to underperform in some critical areas which have caused their development stagnancy.

The study has shown the importance of ICT as a powerful tool in the development of co-operative institutions (SACCOS) in order to enhance performance.

Lastly, the study recommends co-operatives to consider making ICT as cross cutting issue in different interventions of co-operative promotion. This should be in parallel with capacity building to management and other staff of the SACCOS. On the other side, there is a need to review co-operative laws of Tanzania and make ICT as a national agenda for co-operatives development.