The role of informal microfinance institutions in saving

� Links should be formed with the financial NGOs so that innovation and techniques can
be shared in order to promote change.
� The management style of the SACCOs should be modernized and professionalized with
the introduction of computer systems the training of management in the financial
techniques used in the networked banking sector, and the introduction of management
to credit analysis and credit management techniques.
� The extension of the movement to rural areas n Tanzania beyond the areas of
concentration and to members other than coffee farmers.
Recommendations
Although seminars and workshops have been organized to facilitate exchange of information
among East Africa countries, these activities have not had significant impact probably because
these institutions do not share the same pre occupations and operating principles.
Needs several exchanges of experience and cooperating aimed in promoting reflection on the
innovations developed in other countries, outline the East Africa cooperation Banks to assess
the complementarity’s and the relationship between these banks and the SACCOs, between
SACCOs and financial NGOs in East Africa to compare the unique aspects of each system and
the profiles of the clients they get
Definition of key terms
1. ROSCA – Rotating Saving and Credit Associations – these are groups save their own money
and then lend it out to each member of the group in succession.
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