Dar Es Salaam, Tanz - SNHU Academic Archive - Southern New ...

10Compared t o othe r financial institutions , a saving s an d credi t cooperativ e i s uniqu ebecause it follows a philosophy of self-help, member control and economic democracy.The Cooperativ e work s fo r th e socia l an d economi c bettermen t o f th e members .Members of the cooperative own and control the organization. In a competitive businessenvironment saving s an d credi t cooperative s mus t follo w soun d busines s practice s t osurvive and progress while following the cooperative principles.Savings and Credit Cooperative societies are established basing on values of, self-help,social responsibility , openness, democracy , equality , solidarity , care an d honest y o fmembers through participation. With their emphasis on lending, mobilizing savings andmanagement a t loca l level , SACCO s appea r t o b e a ver y promising mechanism fo rdelivery of financial services to the rural poor throughout th e country . In view of theirproximity to their clients, the operating and transaction costs of SACCOs are relativelylow. Further, bein g organizations forme d by beneficiaries themselves , th e latte r fee l asense of ownership in their respective SACCO s and, hence, ensure that operations ar econducted accordin g to establishe d criteri a and procedures. Thi s has resulte d in moreeffective operations mirrored also in reduced risks in lending and repayments.The National Micro finance Policy recognizes the institution s providing micro financeservices a s th e rea l drivin g forc e behin d th e achievemen t o f th e ultimat e goa l ofdevelopment of sustainable micro finance.