Impact of savings and credit co-operative societies’ services on household livelihood outcomes in Mwanza and Tabora rural areas, Tanzania

Abstract

PurposeThis study investigates whether Savings and Credit Co-operatives’ (SACCOS) services such as loans, savings and training improve household livelihood outcomes.Design/methodology/approachThe study employed a quasi-experimental design. Six SACCOS were purposively selected in four districts of Mwanza and Tabora regions in Tanzania. A sample of 500 respondents was randomly selected of whom 200 were SACCOS’ members and 300 were non-members. A questionnaire and a key informant interview guide were used to collect quantitative and qualitative data respectively. Propensity Score Matching (PSM) was used to analyse the quantitative data whereas qualitative data was subjected to thematic analysis.FindingsThe results indicate that SACCOS’ services had significantly impacted on the household livelihood outcomes in terms of maize yields, household assets, savings, food expenditures and non-food expenditures.Research limitations/implicationsThis study was conducted in two regions of Tanzania using six SACCOS. Similar studies can be conducted in a larger area of Tanzania by capturing more than six SACCOS. In addition, the study focused on the rural areas of Tanzania. The future studies can be carried out in urban areas or both urban and rural areas of Tanzania.Practical implicationsLocal leaders, SACCOS’ leaders and other stakeholders in the study area should thus mobilise non-members in their areas to join SACCOS. In addition, the Tanzania government should facilitate the formation of new SACCOS and strengthen those already operating in rural areas.Social implicationsSACCOS provide opportunities for individuals and households in rural areas to converge socially and economically to achieve better results (positive impact on livelihood outcomes), which otherwise could be non-achievable through single household or individual efforts.Originality/valueUnlike previous studies, this study provides empirical evidence on the impact of SACCOS’ services on livelihood outcomes of SACCOS members in rural areas of Tanzania where abject poverty is widespread and where the majority of SACCOS are found.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2021-0028