The effects of savings and credit cooperative Societies (SACCOs) on the socio-economic development of the rural community in Wakiso District

Abstract

The research was driven by the fact that Uganda’s financial sector has become more open and competitive due to the liberalization of the economy. This, therefore, made the interest rate on loans to be high and as a result, credit institutions have come up to enjoy the favorable financial markets environment. However, most of these micro finance institutions are top- bottom, structured, whereby the individual who saves and borrowers have less or no control at all in these institutions. The researcher used questionnaires to identify the effects of savings and credit cooperative societies on the socio-economic development to the rural community, establish policies on the lending and loan procedures used by SACCOs and to examine the nature of economic activities financed by these SACCO’s. Primary data, secondary data and across sectional survey design which were descriptive in nature were also used. The researcher also closely analyzed the collected data with scientific programs for example Microsoft word, mathematical tables. He made various recommendations that were used by the SACCOs to improve and enhance the social and economic lives of the rural community around the SACCOs premises. The researcher recommended that, the SACCO management should develop staff recruitment policies in order to make its work better and easier. Management was also questioned to come up with irrecoverable loan policies and also review its policies over and over again. Since the study established that majority of low income earners were more involved in farming activities, the ministry of agriculture was advised to provide farm equipment at a reduced cost to farmers, give them credit facilities so that they can carry out this activity on a large scale basis so as to enable them realize better income