Effect of Ability and Governance on Wellbeing of Savings and Credit Co-operative Societies (SACCOS): Analysis in Tanzania

Abstract

It remained inconclusive by various studies about factors that lead to ability of SACCOS, determinants of governance in SACCOS; and effect of ability and governance on wellbeing of SACCOS. That was a knowledge gap focused by this paper on "Effect of Ability and Governance on Wellbeing of Savings and Credit Co-operative Societies (SACCOS) in Tanzania”. The specific objectives are to determine key factors that lead to ability of SACCOS; establish determinants of governance in SACCOS; analyse effect of governance and ability of SACCOS in providing services for high wellbeing in SACCOS. Primary data were collected using a questionnaire administered to one hundred and twenty SACCOS. Principle Component Analysis enabled the author to determine the key factors which lead to ability of SACCOS and establishing determinants of governance. Probit regression analysis enabled the author to establish factors that lead to high wellbeing in SACCOS.

The findings revealed four key factors that lead to ability of SACCOS namely growth in value of shares, savings, loans and loan repayment rate. Four determinants of governance in SACCOS were established to be participatory decision making, the committees held meetings as per schedules,  actual number of board meetings befive, seven or nine and the audited reports made open to members. Ability and governance were revealed led to high wellbeing in SACCOS. It is concluded that high wellbeing of SACCOS depend on their ability and governance in provision of services and they should be given priority in SACCOS' activities.