n Development Finance Agenda (DEFA) - The rise of saving and credit cooperatives in Tanzania - will it bring financial boom or bust

Volume 1, Issue 1
  • ISSN :



The objective of this paper was to evaluate the performance and sustainability of saving and Credit Cooperatives in Tanzania (SACCOs). We used the data from audited financial statements of 103 SACCOs during 2011. We found that there is a glimmer of hope towards financial sustainability path for some SACCOs, but more work is ahead. While 51% of SACCOs are performing well in terms of sustainability, the remaining 49% of them are operating under 'time bomb' mode meaning that their annual total cost is higher than their annual net revenue. In terms of profitability on average they are profitable recording 7% returns on asset. Improvement in profitability and cost containment has been found to have a significant positive impact on performance and sustainability of SACCOs.

Loading full text...

Full text loading...


Article metrics loading...


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error