Assessment of opportunities and challenges for establishment of a member-based micro-finance institution (SACCOS) : a final project report for Kishapu SACCOS in Shinyanga Region

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Southern New Hampshire University
This project report provides a review of the operational mechanism that prevails in micro-finance arrangements in Kishapu district, so as to identify opportunities andchallenges in provision o f such services. Using information obtained from survey and secondary sources is set out to provide useful information for enhancing access to savings and credit by the majority of the small scale producers (farmers) and petty traders. Questionnaires administered to a sample o f 100 randomly selected respondents from three villages: Mhunze, Iboja and Ndoleleji in Kishapu District were used to collect primary data. The analysis of findings was then done using a statistical computer package for social scientists (SPSS 11.5). Cross tabulation and regression analysis was also done. Major findings indicated that the majority of the population in Kishapu is not accessible due to none availability of financial institutions. Government and donor-funded schemes such as Women and Youth Revolving fund are only availability of financial schemes in the area which again are not comprehensive as they are only geared toward specific target groups based on sex, age, or socio-economic status. The findings suggest that there is a need to address key factors that inhibit access to credit by small farmers and petty businessmen that would facilitate alleviation of poverty amongst the majority of the rural population in Kishapu district. (Author abstract)