Challenges and opportunities of SACCOS in resources mobilization in Tanzania: a case study of Kwimba District in Mwanza Region

The objective of the study was to examine the challenges and opportunities to which member based microfinance institutions namely SACCOS encounter in mobilizing resources from their members in Kwimba district in Mwanza region. SACCOS have many challenges which were not examined as a result it was not eases to overcome them. A sample of 68 respondents from 4 SACCOS was used and it constituted employees, members and board members. Data were collected through questionnaires and documentary review methods. Descriptive statistics were used in the data analysis. The study revealed that SACCOS provide deposit services to their members who use it for different purposes, however the amount deposited is relatively low in both rural and urban areas, SACCOS face competition from banks which provide more convenient services. The researcher recommends more training to managers, accountants, and other staffs. On the other the technology should be modernized to so as bring about operation efficiency and effectiveness. It was also found that training and participation in social events are among the techniques used to mobilize resources. Furthermore SACCOS members expressed mistrust to their institution and staffs were found to have low work morale and lack of motivation to mobilize resources. Assets such as members’ loans are not designed to match in both interest rates sensitivity and duration, this cause SACCOS to experience liquidity problems in meeting member’s loans applications and funding of viable agricultural and investments requirement. Successful mobilization of resources in SACCOS can be attained by involving members, employees and management and utilizing social and resource mobilization techniques that can change their attitude. It is recommended that SACCOS should employ competent staff and provide them with attractive incentives, allocate education fund to provide training, use of current technology in service provision, use participatory mobilization techniques and cooperative department should be strengthened so that resources can be mobilized.