A case study of Tujikomboe Saccos Moshi Rural District, Kilimanjaro Region - Tanzania

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Southern New Hampshire University
Tujikomboe SACCOS is a registered Savings and Credit Cooperative Society. The formation of Tujikomboe SACCOS was due to the results of members needs for having an institution that will provide financial facilities and services for the community living in Mbokomu ward, Moshi Rural District, in Kilimanjaro Region. The Composition for membership includes individuals, male and female, groups working within the area and institutions operating within the same locality. Tujikomboe SACCOS is working to promote social and economic position of its members and customers and hence improving the living standards of Mbokomu community by providing sources of credit to undertake various social- economic activities as per members needs and priorities. The Financial Services are very limited in the rural areas whereas most of the Financial Institutions are operating in the urban centres and therefore leave the majority of the population in the rural areas in abject poverty. An effort made by the members to establish such an Institution in their respective locality will reduce: Time wasted for going from the village to towns, Saves the costs of transport to and from the town Save time for other activities and hence enjoying the nearby services to them. Mbokomu ward has a population of 12,455 people. More than 5,000 among them are potential members of Tujikomboe SACCOS. Since its formation, Tujikomboe SACCOS was faced with the main problem of membership and hence the growth of this MFI was affected due to low capital base which would have helped them to provide the highly needed financial service to the members. The capacity of any Financial Institution to provide financial services to its members depends on the number of members and customers registered with them with an increase of the value of shares, savings and deposits. (Author abstract)