Member Based-Micro Finance Institutions and Poverty Reduction. A case of Chamwino District Dodoma Region, Tanzania

Bwamwojo, Geofrey George (2013) Member Based-Micro Finance Institutions and Poverty Reduction. A case of Chamwino District Dodoma Region, Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

This study reflects on assessment of the contribution of Micro Finance Institution in this case Saving and Credit Cooperative Society (SACCOS) in poverty reduction in rural areas. The main objective of this study was to examine the economic contribution of SACCOS towards poverty eradication especially in rural areas by identifying factors influencing SACCOS’ performance, contribution toward employment creation to the community and the extent to which it contributes to poverty eradication of their members. The researcher use purposive sampling methods to select five SACCOS out of 36 SACCOS in Chamwino district. Among criteria for selection of SACCOS include number of shares, deposits, amount of savings and number of members. Findings in this study revealed that, there are a number of factors that influence the performance of the SACCOS. These factors include sources of fund, interest rates, loan disbursement to members, staff qualification and loan application procedures. SACCOS created self employment to members and non members through expansion of business, agriculture and loan to pay school fees to its members. Number of loans and value disbursed slightly increased every year, this is an indicator that members are aware of the importance of borrowing and investing in income generating activities. Experience has shown that availability of financing, even small amounts has a very positive impact on the family’s economic condition as it helps to unlock productive potential.

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