Understanding Factors Impacting to Low Members’ Savings among Savings and Credit Co-operative Societies (SACCOS), A Survey Study in Rural Kwimba District, Mwanza Region, Tanzania
Subject Areas : Rural Studies
Paulin
Paul
1
(Department of Co-operative Education, Kizumbi Institute of Co-operative and Business Education, Moshi Co-operative University)
Keywords: Low members' savings, in Savings and Credit Co-operative Societies, Kwimba District, Mwanza Region,
Abstract :
The functionality of the Savings and Credit Cooperative Societies (SACCOS) sorely depends to members’ savings. Specifically this study aimed to determine SACCOS’ members saving capacity and to identify factors leading to low members’ savings. Ninety SACCOS members were selected and used in this study. Data were collected using structured questionnaire, checklist of interview and documentary review. The collected data was analyzed descriptively whereby percentages and multiple responses analysis were computed. The study findings revealed that SACCOS members in Kwimba District have low saving capacity of below 10,000TZS per month. Among the revealed factors leading to low member savings included; un-payment of interest to members’ savings, few sources of income among members and lack of faith with SACCOS as a strong financial institution hence members fear of losing their money when they consider depositing to SACCOS. Stiff competition from other competitors that offer loans without savings was also among the factors leading to low member savings. The study concludes that low member savings among SACCOS members in Kwimba District is sorely associated with; demographic characteristics of individual SACCOS member, SACCOS as an institution and external environment particularly SACCOS competitors. The study recommends that; SACCOS management should work upon the identified hindrances of low member savings in order to improve member savings capacity and the entire functionability of the SACCOS in Rural Kwimba District. The study as benefited the SACCOS management to strategize on how to increase members savings capacity hence improve liquidity and functionality of the entire SACCOS.
1. Abrar, A. (2019). The impact of financial and social performance of microfinance institutions on lending interest rate: A cross-country evidence. Cogent Business and Management, 6(1), 1–21.
2. Auka. D. O. and Mwangi.J. K. (2020). Factors Influencing SACCO Members to SeekServices of Other Financial Service Providers in Kenya, International Review of Management and Business Research, 2(2), 610-626.
3. Ashby, J. S., Schoon, I., & Webley, P. (2011). Save now save later? Linkages between saving behavior in ado-lescence and adulthood. European Psychologist, 16(3), 227–237. doi:10.1027/1016-9040/a000067
4. Attanasio, O.P., Picci, L. and Scorcu, A (2017). Saving growth and investment, a macroeconomic analysis using panel of countries, Review of Economics and Statistics, 82, 182- 221
5. Aunders, M., Lewis, P and Thornhill, A. (2009). Research Methods for Business Students. Person, New York.
6. Chamboko, R., Guvuriro, S., and McMillan, D. (2022). On the predictors of loan utilization and delinquency among microfinance borrowers in Zimbabwe: A Poisson regres sion approach. Cogent Economic & Finance, 10(1),10-24. DOI: 10.1080/23322039.2022.2111799
7. Chava, S, Ganduri, R, Paradkar, N & Zhang, Y, (2021).Impact of marketplace lending on
8. consumers’ future borrowing capacities and borrowing outcomes. Journal of Financial Economics, 142(3),1186-1208.
9. Chen, S., Gu, Y., Liu, Q., Gu, Y. and Tse, Y. (2020). How do lenders evaluate borrowers in peer to-peer lending in China? International Review of Economics & Finance, 69:651-662. DOI:10.1016/j.iref.2020.06.038
10. Churk, J. P. (2015). Contributions of Savings and Credit Cooperative Society on
11. Improving Rural Livelihood in Makungu ward Iringa , Tanzania. Proceedings of the Second
12. European Academic Research Conference on Global Business, Economics, Finance and Banking,
13. Zurich-Switzerland, 3-5 July, 2015 Paper ID: Z550,Retrieved from [www.globalbizresearch.org] on 22 November 2023
14. Gonosa, A., Bargissa, B., and Tesfay, K. (2020). Factors’ Affecting the Motives of Rural Households’ Saving Behavior in North Bench District, Bench Maji Zone of Southern Ethiopia. International Journal of Agricultural Science, Research and Technology in Extension and Education Systems (IJASRT in EESs), 10(2), 93-101.
15. Habte, A. T. (2016). The Impact of Microfinance on Household Livelihoods: Evidence from Rural Eritrea. A Thesis Submitted in Partial Fulfillment of Requirements for Degree of Doctor of Philosophy at University of the Western Cape, 270pp.
16. Kamau, J. N., and Nyambura, E. N. (2020). Loan Default Determinants among Mobile Loans App Users in Nairobi City County, Kenya. International Journal of Economics, Commerce and Management, 8(1), 220-235.
17. Kareem, O. W., Adefalu, L., Daudu, A. K., Dolapo, T., Abiola & Alabi, F. A. (2022). Benefits of Financial Credit among Smallholder Farmers. International Journal of Agricultural Science, Research and Technology in Extension and Education Systems (IJASRT in EESs), 12(1):37-45
18. Kim, D., Maeng, K. & Cho, Y. (2020). Study on the determinants of decision-making in peer-to-peer lending in South Korea. Asia Pacific Journal of Accounting & Economics, 27(5), 558-576. DOI:10.1080/16081625.2018.1540939
19. Ng'ang'a, S. N., Kibet, L. K., and Simiyu, C. (2018). Determinants of Loan Repayment among Youth: A Case of Youth Enterprise Development Fund in Nairobi County, Kenya. International Journal of Social Sciences and Entrepreneurship, 1(11), 271-288
20. Ogebe, O. F., Adejo, M. A and Burbwa, P. A. (2020). Factors Affecting the Rural Poverty and its Vulnerability. International Journal of Agricultural Science, Research and Technology in Extension and Education Systems (IJASRT in EESs), 10(2), 71-79
21. Richard I. M,. Benedicto K., Lucas M., and Severine S. K (2022). "Impact of savings and credit co-operative societies’ services on household livelihood outcomes in Mwanza and Tabora rural areas, Tanzania," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 50(3), 436-451
22. Salleh, I. S., Ali, N. M., Mohd-Yusof, K. & Jamaluddin, H. (2017). Analysing
23. Qualitative Data Systematically using Thematic Analysis for Deodoriser Troubleshooting in Palm Oil Refining. Chemical Engineering Transaction - AIDIC, 56, 1315-1320.
24. Singh, A., and Malik, R. (2020). Determinants of Default in Digital Lending Platforms: Evidence from Sub-Saharan Africa. Journal of Development Economics, 25(4), 789-807.
25. URT (2004). The United Republic of Tanzania, SACCOS regulations of 2004: Dodoma, 185pp
26. Wagner, J., and Walstad, W. B. (2016). The effects of financial education on short-term and long-term financial behaviors (working paper). Retrieved on 11th November, 2023 from http://gflec.org/wp-content/uploads/2016/04/Wagner-Jamie-and-Walstad-William-The-Effects-of-Financial-Education
27. Yitayaw, M. K. (2021). Determinants of Profitability and Financial Sustainability of Saving and Credit Cooperatives in Eastern. https://doi.org/10.1177/0973005220980599.