Rural Transformation Through Savings and Credit Cooperative Societies in Moshi District, Tanzania

Abstract

This chapter analyzes and documents the contribution of Savings and Credit Cooperative Societies (SACCOS) in facilitating rural transformation in Moshi District, Tanzania. The study involved 150 respondents composed of management and ordinary members of SACCOS. Data were collected through questionnaires and documentary review methods. Results indicated that SACCOS play an important role in facilitating rural transformation by providing financial services in rural Tanzania where most people were not served by the formal financial institutions. The study confirmed SACCOS’ usefulness in increasing the material welfare of its members in terms of living standards, guaranteed income, enhancement of skills and knowledge, employment as well as leadership and governance. It was further found that SACCOS had effect in transforming rural areas in terms of special loan schemes, rural customer size, direct rural investments, and rural income generation programs. There is a positive significant relationship between SACCOS and rural customer size, direct rural investments, and rural income generation programs. It is therefore recommended that cooperative practitioners including Moshi Co-operative University (MoCU), Savings and Credit Co-operative Union League of Tanzania (SCCULT), Tanzania Federation of Co-operative (TFC) and Tanzania Co-operative Development Commission (TCDC) should make more campaigns and educate rural people on the purpose and benefits of a SACCOS and let many join SACCOS.