The role of micro finance institutions in Tanzania: a case study of SACCOs in Mbeya region.

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University of Dar es Salaam
This study examines the role of micro finance institutions in Tanzania. Specifically, the study examines the role of Savings and Credit Cooperative Societies in Mbeya region. The study identifies the role played by SACCOS in the socio- economic development of rural areas. The data were collected through questionnaires. Both descriptive and quantitative methods were used in data analysis. Descriptive analysis was employed to assess the characteristics of members, institutional performance and credit use. Quantitative methods were used to explore the factors that affect the development of the SACCOS, particularly the factors that limit their success in the rural areas. The results obtained support the main argument that SACCOS play an important role in the development of the economy and have filled a gap left by formal financial institutions. The results indicate that the members who initiated SACCOS have mobilized a relatively bigger amount of savings (value of shares) per member compared to non-members. Some of the SACCOS had few members but with large amount of savings. The SACCOS included in the study had never received any external finance from banks nor from any other source. The results further demonstrate that, access to credit attracts non-members to join SACCOS. The study has identified an immediate need to enhance managerial capacity in SACCOS.
Cooperatives societies, Finance, Financial institutions, Tanzania, SACCOS, Mbeya region
Tamamu, Y. A. (2004). The role of micro finance institutions in Tanzania: a case study of SACCOs in Mbeya region.Masters dissertation, University of Dar es Salaam. Available at (