Addressing Socio-Economic Development Challenges among Community Members through Savings and Credit Cooperative Societies in Chemba District, Dodoma Region, Tanzania
Keywords:
community SACCOS, socio-economic development, community members, TanzaniaAbstract
Savings and Credit Co-operative Societies (SACCOS) are member-owned financial institutions established to provide affordable credit, promote savings, and support socio-economic development, especially among underserved communities. This study examined how SACCOS can be effectively utilized to address financial challenges and promote socio-economic development among community members. Specifically, it explored the role of SACCOS in improving access to financial services, assessed their contribution to income-generating activities, and identified the challenges hindering their effectiveness in promoting community welfare. The study was conducted in Chemba District, Dodoma Region, Tanzania, adopting a cross-sectional research design within a mixed-methods approach. Data were collected from 357 members drawn from four SACCOS using questionnaires, interviews, and focus group discussions. Both qualitative and quantitative analyses were applied, with descriptive statistics used to summarize the data and content analysis used for qualitative data. Findings revealed that members generally possess low awareness of SACCOS operations, educational programs, and registration procedures, limiting participation and efficiency. Members reported improved access to affordable credit, better income levels, asset accumulation, enhanced savings habits, and participation in profit and dividend sharing. Additionally, increased financial inclusion and business development were observed. Social benefits such as trust, solidarity, and mutual support were also noted, though at modest levels, indicating the need for stronger social protection measures. The study recommends to the Government through Tanzania Cooperative Development Commission-(TCDC) to target interventions to strengthen member education, leadership accountability, product innovation, digital adoption, and financial literacy. Addressing these challenges will enhance SACCOS’ capacity to promote financial empowerment, resilience, and inclusive socio-economic development within communities.
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