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

45In respec t o f SACCOs, th e microfinanc e polic y observe d that there were operationa lproblems as regards to the poor administrative system and weak financial control withinthe societ y a s wel l a s lac k o f effectiv e supervisio n o f th e SACCO s a s financia lintermediaries. Also , th e polic y state d tha t SACCO s shoul d operat e unde r th eCooperative Act 1991 , which is now replaced by the new Coop. Act 2003 (that cameinto effect i n 1 st August 2004). SACCOs activities are also covered under the Bankingand Financia l Institutio n Act , 199 1 a s financia l Intermediaries , bu t the y ar e no tsupervised by the Bank Of Tanzania (BOT). The co-operative society Act no. 20 of 2003was assented b y the parliament on 10 th November 2003 and signed by the Presidents ofthe United Republic of Tanzania on 30 th January 2004.The Nationa l Microfinanc e Polic y articulate s a clea r visio n an d strateg y fo r th edevelopment o f a sustainable microfinanc e industry, specifying the respectiv e role s ofthe key stakeholders th e Governmen t and its principal agencies in policy formulationand implementation, the differen t institutiona l providers of microfinance services, andthe dono r community . I n it s statemen t o f th e overal l microfinanc e policy , th eGovernment recognize s th e microfinanc e secto r a s a n integra l par t o f th e financia lsector, which falls within the genera l framework of its Financial Sector Reform PolicyStatement o f 1991 . A polic y statement , unde r articl e 7. 2 o f th e Cooperativ eDevelopment policy (2002), states that, T o solve the problem of liquidity to membersand primary cooperative societies, the government will encourage the formation ofSACCOs within the areas of operation of primary societies. The government will also