An assessment of performance of savings and credit cooperative societies in Tanzania: empirical evidence from Dodoma city

Abstract

: Savings and Credit Co-operative Societies (SACCOS) mobilise and administer savings within their members and provide them with affordable credit facilities. Despite this role they also have drawbacks which affect their performance. None of the previous reviewed studies assessed performance of SACCOS in Tanzania. This study therefore was set to fill this knowledge gap. Cross-sectional research design was used in collecting data. Multi-stage sampling technique was used. Data were collected by using interviews and documentary review and analysed by using perception of members, mathematical equations, profitability ratios and tables. Comparisons with WOCCU standards were also used in assessing performance of SACCOS. Perceptions of members show that SACCOS were achieving high performance in terms of IT. The study found that the SACCOS achieved high performance in terms of net surplus; ROA; CIR; and loan portfolio ratios. However, the SACCOS were not performing well in terms of amount of savings by members.