The role of informal microfinance institutions in saving

Specific objective number four and research question was; what factors are important in
assessing the performance of SACCOs in Tanzania?
As in specific objective and research question three above, the study has found that in
Tanzania, policy makers and researchers are still using traditional factors of assessing SACCOs
performance such as amount of savings collected, number of members, amount and number
of shares, amount and number of loan outstanding, number of defaulters etc. However,
moreover, this study has found that some SACCOs put impressive untrue data in order to
cheat for the purpose of getting additional financial assistance from the government, local
donors and foreign donors.
Specific objective number five was:
To determine the frequency of tangible and intangible benefits and human elements and their
importance in assessing appraisal of SACCOs portfolio investment. Research question number
four was; does the frequency review of tangible benefits, intangible benefits and human
elements have importance in appraising SACCO’s portfolio investment? This study has found
that these have not yet helped much to evaluate and appraise SACCOs portfolio investment
since the frequent conducted review of SACCOs just is done to examine SACCOs balance sheet
in terms of revenues, expenditures and profit/loss pattern but does not examine profile of
member project patterns financed by SACCOs loans bring in more profits and which ones
brings in more loss and the factors that have lead to such occurrence.
This in fact has caused wrong figures of some SACCOs being reported contrary to what
actually is taking place within most SACCOs in Tanzania.
Specific objective number six was to identify financial products offered by SACCOs to its
members; it’s correspondingly research question number six was: what are products and
services offered by SACCOs and how can they satisfy members, customers, competitors and
facilitators? The study found that the established SACCOs in Tanzania for a long time they
have been concentrating on saving mobilization and loan disbursing only, thus neglecting to
adopt any innovative approach to develop other new financial products suitable to organized
informal microfinance institutions which could thus lead to improvement of delivery of
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