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The capacity of VICOBA in improving the living standard among its members is still doubted. This is because most of the VICOBA have failed to manage its funds properly especially in initiating and managing different projects to satisfy the participants’ need for fiscal amenities. Therefore, this study aimed to assess the capacity within the village community bank in relation to their fund’s management.
A descriptive research design was used with both quantitative and qualitative approach. The research was performed in Kinondoni district at Kigogo ward in Dar es Salaam. The study population was 1500 members of the UVIKAKI. The simple random sampling and purposive sampling were done to select a sample size of seventy-six (76) members of VICOBA from UVIKAKI.
Findings showed that the majority of the VICOBA surveyed during the study had the capacity to offer the maximum amount of loan of below 1,000, 000/= Tshs, but most of VICOBA improved the saving capacity of the members after they have joined VICOBA. In addition, the findings also indicate that shares and loan conditions, member’s income generating activities, leadership, accountability, and training were the factors that determine the capacity of VICOBA. Moreover, findings show that VICOBA are facing some challenges such as inadequate capital, inadequate entrepreneurship skills, lack of permanent office and furniture, lack of members’ commitment especially in weekly meetings attendance, and delaying of loan repayments.
The study concluded that VICOBA improved the socio-economic development of members through credits, saving, training, and insurance, though there were some of the challenges facing their daily operations. Moreover, the study concluded that shares and loan conditions, member’s income generating activities, leadership and accountability, and training were factors, which determine the capacity of VICOBA.
The study recommended that members of VICOBA should be accountable to accomplish groups’ capacity, as well as VICOBA; members should deal with the challenges facing their VICOBA to attain a reasonable capacity. |
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