Financial and institutional assessment of Posta Na Simu Savings and Credit Cooperative Society Limited ("KK") : Dar-es-Salaam, Tanzania

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Southern New Hampshire University
Cooperative systems were developed into structures of government intervention, where the political structures did not conform to the fundamental cooperatives stance and ideals. Recently, the government of Tanzania has undertaken various initiatives towards poverty reduction and attainment of social and economic development. One of the steps was encouraging formation and to continue providing technical assistance to strengthen and develop SACCOS in urban and rural areas.The purpose of this study is to assess a workers' community established as a Savings and Credit Cooperative Society, namely, Wafanyakazi wa Posta na Simu Savings and Credit Cooperative Society Limited (KK) located in Dar-es-salaam. The intention of the assessment is not to audit the institution but to study performance of activities to give a clear picture of society financial and institutional situation, while observing the extent to which it has successfully fulfilled its avowed role in the past. The study results from KK assessment reveals that with proper organization and control, savings and credit cooperative societies can truly alleviate poverty to its members. SACCOs are expected to improve, continue and expand their role in rural financial services. They also need to be supported through the provision of appropriate capacity building assistance, including training and members' education on savings and credit. This would enable them to upgrade their current level of management, resources, skills, accounting/financial knowledge, assets and overall operating procedures, which would in turn contribute to their sustainability, and make them more effective and efficient. (Author abstract)