The role of informal microfinance institutions in saving

microfinance services in both rural and urban areas of the country, hence contribute positively
to the roles of Savings and Credit Cooperative Society to reduce and income inequality among
most population of Tanzania. Thus bringing life improvements and general economic
development of the country.
Specific objective number seven was to identify the extent to which different cooperative
managers at different Management levels are satisfied with the existing SACCOs operating
system. This corresponds with research question number seven which asks to what extent
does cooperative managers are satisfied with SACCO’s performance in Tanzania?. The study
found that almost all cooperative Managers in Tanzania up to the year 2009 when this
dissertation was being prepared, have not yet fully been satisfied with the performance of
SACCOs in Tanzania in relation to its (SACCOs) major objectives of using its organized micro
loans schemes as major tool of reducing poverty among its members, and also at the same
time increasing the number of members covered by these microfinance institutions in
Tanzania. This study has found that almost all officially recognized Savings and Credit
Cooperatives Societies (SACCOs) have been putting a lot of concentration to saving
mobilization, loan disbursement and loan recovery, without being involved to assess and
evaluate members micro project performance being financed by micro loans from SACCOs.
Specific objective number nine was to make suggestions on how to design proper rural
financial services programs to help reduce income poverty in most rural areas of Tanzania of
Tanzania. Its accompanied research question number nine was; which type of rural financial
services reduces income poverty among most rural population in Tanzania?.
From a combination of these study found that proper micro finance program suitable to
reduce poverty among most rural population in Tanzania should be designed after taking into
considerations specifics social economic conditions and major dominant economic activities
found in each rural areas of Tanzania. This is because though agriculture dominates most
activities in rural area of Tanzania. There are still wide differences of activities done in each
rural area from one region to another such as influenced by geographical structure, climate,
type of crops, culture of the people etc. As such no single type of program can suit to all rural
community of Tanzania.
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