Tanzania's Savings and Credit Cooperative Societies (Saccos) have grown into a Sh1.4 trillion sector, increasing the importance of governance and protection of members' savings. The sector's growth has led to a rise in the stakes for governance and protection of members' savings as Saccos handle larger amounts of money. This growth has also led to an increase in the number of participants in the sector.
The 26th Savings and Credit Cooperatives Associations (Sacca) Congress will be held in Tanzania from October 11 to 16, bringing together about 1,300 participants from 30 countries. The meeting aims to discuss the growth of the sector and the challenges it faces. The congress will provide an opportunity for Tanzania to showcase its achievements in governance, regulation, technology, innovation, and member-centred financial services.
According to SCCULT chief executive officer Mr Hassani Mnyone, Saccos had accumulated assets of Sh1.4 trillion by December 2024 and issued about Sh1.2 trillion in loans to low- and middle-income earners, farmers, small businesses, and other income-generating activities. The sector's growth has been driven by efforts to rebuild confidence in the cooperative movement following cases of embezzlement, weak governance, and poor management.
The growth of Saccos shows the important role they are playing in providing financial services to members, particularly those engaged in agriculture, small businesses, and other income-generating activities. The sector's expansion has followed efforts that gained momentum in 2017 after stakeholders recognised the need to restore confidence in Saccos. Since 2017, there has been a deliberate effort to rebuild the movement, strengthen institutions, and restore members' confidence.
The Tanzania Cooperative Development Commission (TCDC) reported that Saccos had about Sh1.20 trillion in outstanding loans by December 2024. The growth is expected to continue, with 2025 performance projected to push Saccos' assets towards Sh1.6 trillion, loans towards Sh1.3 trillion, and membership close to two million. The sector's growth has also led to an increased focus on technology, with institutions adopting ICT and digital services to improve access, information management, and service delivery.
The congress will allow Tanzania to share its experience while learning from other cooperative movements. The reforms will form part of the wider discussion at the congress, which Mr Mnyone said would allow Tanzania to reflect on what still needs to be done to ensure that growth continues to benefit members. The transformation must continue alongside the sector's growth, with institutions required to strengthen their capacity to meet changing member needs.
The growth of Saccos has raised the stakes for governance and protection of members' savings, with the scale of the sector making governance and protection of members' savings increasingly important as Saccos handle larger amounts of money. The more the sector grows, the greater the responsibility to ensure that members' money is protected through strong governance, proper management, and accountability.
Key points
- The growth of Tanzania's Saccos sector has raised concerns about governance and protection of members' savings.
- The 26th Sacca Congress will be held in Tanzania to discuss the growth of the sector and the challenges it faces.
- Saccos are expected to continue growing, with projected assets of Sh1.6 trillion and loans of Sh1.3 trillion by 2025.
