Savings And Credit Cooperatives (Sacco’s) Services’ Terms and Members’ Economic Development in Rwanda: A Case Study of Zigama Sacco Ltd (Published)
The purpose of the study was to find out the contribution of SACCO services’ terms on members’ economic development using ZIGAMA as a case study. The study was based on three specific objectives, that is, to examine the nature of services’ terms at ZIGAMA, to assess the effect of savings services’ terms on members’ economic development at ZIGAMA and to analyze the effect of credit services’ terms on members’ economic development at ZIGAMA. To achieve these objectives, the study adopted a cross sectional, correlational and survey research designs. Data were collected through questionnaires, face to face interviews and observation methods. Data were analyzed by use of statistical methods, (descriptive statistics, Correlations and regressions analyses). The findings revealed that ZIGAMA attaches terms on its services which are annually reviewed by its board members. The services’ terms however are not properly communicated to members. Further, results indicated that savings services’ terms were moderately favorable to members and there was a strong positive and significant relationship between savings services’ terms and members’ economic development and also a significant influence of saving services terms on members’ economic development. Results also indicated that credit services terms were also moderately favorable to members and there was a strong positive and significant relationship between credit service terms and members’ economic development and also a significant influence of credit service terms on members’ economic development. It was concluded that ZIGAMA had services terms in place but were not being communicated properly to members and their review was not involving all stakeholders. It was further concluded that SACCO’s services terms significantly predict variations in members’ economic development. Recommendations were that ZIGAMA should involve all stakeholders in the review of the service terms and the same terms should be properly communicated to all those concerned and should allow its members to withdraw their savings as needed and the minimum balancee should be friendly to the members.