The role of informal microfinance institutions in saving

2.2.7 The prospects of SACCOs in Tanzanian economy
The identified problems of SACCOs notwithstanding their enormous depth, breadth and
intensity it is only fair and proper to acknowledge the fact that the government did not fold
its arms to watch the SACCOs wallow in the gamut of problems. Doubtless, the government
fully appreciates the opportunities SACCOs create for employment, their contributions to
economic growth and development as well as the constraints and difficulties in their operating
environment.
The Government of Tanzania acknowledges SACCOs as major news of ameliorating the
poverty status of the majority of the population. In the rural sector SACCOs are seeing as
important institutions that will play a significant role in providing rural credit carrying out a
host of other initiatives to bolster output and raise the quality and quantity of the products of
their members.
The following are the future prospect of the SACCOs in Tanzania:-
� The cooperatives will widen their scope of operation by establishing SACCOs in various
sectors of the economy for example energy, transport, communication, insurance,
water fisheries, housing, trade etc
� Encouraging and supporting through policies and affirmative action the participation of
women in cooperatives (as active member’s leaders, professional managers and
employees.
� Conducting research, gathering and disseminating vital information to cooperatives in
particular and to farmers generally, on internal and international markets.
� Establishing of a national cooperative bank that working in unison with the expanding
savings and credit cooperatives (SACCOs) which will provide credit to cooperatives at
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