A Dissertation Submitted in Fulfillment of the Requirements for Award of the Degree Masters of Science in Accounting and Finance of Mzumbe University
The purpose of the study was to identify factors determining the growth of Savings and Credit Co-operatives (SACCOs) in Tanzania. The main objective of the study was to identify the factors determining the growth of SACCOs in Tanzania. Specific objectives were: to appraise the influence of savings culture commonly used by SACCOs, to map the effects of economic activities to SACCOs members on the growth of their co-operatives, to determine the contribution of management experience on development of SACCOs and asses the role of actual credibility offered by Financial Institutions to members on growth of their co-operatives. The study used purposive sampling techniques in choosing a sample of 60 respondents. Data were analyzed by computer software “SPSS” whereby, quantitative information was obtained by a way of tabulations and rankings polished by the use of frequencies and percentages whereas frequency tables and pie charts used to present qualitative part of the study results. Results show that: Saving culture among SACCOs‟ members prosper growth of their co-operatives – in the sense that many shares are created and hence liquidity. Economic activities also play a great role as it enables members to return both principal and interest of the loaned amount on time. Furthermore, managements experience cited as a vital factor contributing the growth of SACCOs. The findings show most members of the SACCOs are lacking knowledge on co-operatives, thus study recommends that both knowledgeable SACCOSs‟ members and Financial Institutions increase their active participation in providing education to other member of SACCOSs amid credit provision and investment opportunities, to find the way which can motivate members on saving culture, like to increase interest on saving and charge reasonable amount of interest on loans so that in turn, co-operatives flourish and survive for longer than ever.