A Novel Framework for Prosperous Adoption and Deployment of ICTs by SACCOS: A Study from Moshi Municipal, Tanzania

Abstract

Tanzania is one of the third world countries and among the world's poorest county. It depends on agriculture which provides 80% of all employment and contributes to about ¼ of GDP. Its financial sector has inflated in the recent years as a result of competition with foreign commercial banks. In line with good services they provide, the interest rates of these banks are higher thing which creates trouble to customers during loan repayments. Also their loan provision criteria include collateral which is defined as the huge obstacle to low income earners and those who live below poverty line. The alternative way which enables lower-income group to access loan is Savings and Credit Cooperative Societies (SACCOS). Contribution of SACCOS in Tanzania economy is of outstanding importance, but yet the country lags far behind. For SACCOS to continue to exist and stay aggressive it must adoption and use ICTs. Literatures show that there are several SACCOS which are not using ICTs. For those few which managed to adopt ICTs, it had been discovered that they are facing numerous challenges. So this study aimed at identifying factors which hinder SACCOS from adopting ICTs in their operations as well as recommending approaches which their implementations will motivate ICTs adoption. Primary and secondary data were collected by using observation and desk research technique. findings shows that factors which hold back SACCOS from adopting ICTs are poor infrastructure, absence of electricity, low capital, lack of ICT expert and bylaw. Based on findings, researcher proposed framework that will guide and enable SACCOS to adopt ICTs. Proposed framework contains four significant components which are members of SACCOS, government, donors and Banks.