Susainability of savings and credit co-operative societies (SACCOS) : a case of Monduli District-Arusha

Abstract

Saving and Credit Cooperative Societies (SACCOS) are Community Economic Development Projects which are based on three nexes: Participation, Empowerment and sustainability of the economic ventures carried out by community members. The main objective of this survey is to assess the sustainability of these Peoples' Based Organization (PBOs) by analyzing both their activity and financial performance.The survey was carried out in Monduli District in Arusha Region between October 2005 and August 2006 in collaboration with the CBO-Arusha Community Initiatives Support Trust (ACIST) situated in Arusha City Council (ACC). It involved 105 respondents 100 were SACCOS members and 5 were staff from ACIST (Arusha) Community Development and Cooperatives Departments in Monduli District.The principal methodology used in this survey includes structured interviews, Questionnaires, Focus Group Discuss, Key Informants Interviews and Observation.The general observation from the findings reveled that most SACCOS are not performing well due to lack of adequate capital, low level of education, poor extension services, inaccessibility to credit facilities and services. Only workers based SACCOS had stable source of their income.However, its is a naked fact SACCOS do need a comprehensive and concerted effort by both the Government, NGOs and Civil Society Organization (CSOs) to uplift their status and make them sustainable and be fuelling tool for Community Economic Development. (Author abstract)