Contribution Of Savings And Credit Cooperatives (SACCOs) On Members’ Financial Position : A Case Study Of Munyiginya SACCO, Rwamagana District In Rwanda

Abstract

The study aimed at investigating the contribution of Savings and credit Cooperatives (SACCO) on members‟ financial position in Rwanda. The study was conducted in Rwamagana District, Eastern Province of Rwanda especially in Munyiginya Sector, since this Sector has been selected as a field of implementation of the SACCOs policy. Umurenge SACCO program has played a significant role in promoting well-being of Rwandan population, especially in rural areas. The general objective of the study was to analyze the contribution of savings and credits cooperatives on members‟ financial position. To examine the general objectives, the researcher has set specific objectives which were: To which extent SACCO‟s members enjoy the products offered by Munyiginya SACCO, to analyze changes arising from membership of Munyiginya SACCOs to its member‟s financial position and to analyze the challenges faced by SACCO‟s members about saving and credit. From the literature reviewed, the researcher determined how the MUNYIGINYA SACCO offers a variety of products to its members, how it assures the facility on membership criteria, accessing credit in a manner suitable to their need and provide training capacity building that help SACCO‟s members to achieve their objectives. In the present research, the financial position of Umurenge SACCO was evaluated considering the level of income; the assets acquired by households, the capacity of affording social needs and the nature of family housing. To achieve the objectives, the researcher conducted the study by means of a sample size of 73 people out of a target population of 1966 people. The sample selected using purposive sampling and formula of Alain Bouchard. Data collection carried out by means of questionnaires as a research instrument. Those data were computed, analyzed and then interpreted in order to test the impact of the variables on financial position using the SPSS. The findings revealed that SACCO has played a vital role in the enhancement of financial position of their members. To conclude, a series of recommendations and suggestions were formulated for the policy makers as well as for the beneficiaries of SACCO. Suggestions to further researcher were finally addressed.