INFLUENCE OF SAVINGS AND CREDIT COOPERATIVES SERVICES ON THE SOCIO-ECONOMIC DEVELOPMENT OF THE BENEFICIARIES A CASE OFZIGAMA CREDIT AND SAVING SOCIETY
Authors:   Department, Business Administration, Mount Kenya University, Rwanda., Vincent Koweit , Kengere Osiemo ,   Department, Business Administration, Mount Kigali University, Rwanda.
Published: July 2024

Background:Savings and Credit Cooperatives (SACCOs) play a pivotal role in socio-economic development, particularly in developing countries. They provide financial services to their members, fostering economic growth and reducing poverty. However, the extent of their impact on the socio-economic development of their beneficiaries remains under-explored. This research aims to investigate the influence of SACCOs, with a specific focus on the Zigama Credit and Saving Society, on the socio-economic development of their beneficiaries from 2018 to 2023.The researchwas guided by three specific objectives: To assess the impact of Saving Services provided by Zigama Credit and Saving Society on the financial well-being of its beneficiaries. To examine the influence of Credit Services offered by Zigama Credit and Saving Society on the socio-economic development of its beneficiaries. And to find out the effectiveness of Training programs conducted by Zigama Credit and Saving Society in enhancing the financial literacy and skills of its beneficiaries. This research considered three theories in its theoretical framework in particular and these include Cooperative theory, Financial Inclusion Theory and Social capital theory. Methods and Materials:For this study, a descriptive research designs were employed, and data were collected by using both quantitative and qualitative methods, using interview guides and questionnaires.A sample size of 398 individuals was selected from the broader staff population of 77,010members, beneficiaries and staff of Zigama CSS, following Taro Yamanes formula for sample size determination.The collected data were analysed through statistical analysis, encompassing descriptive measures such as the mean and standard deviation to provide an overview of the data. Additionally, inferential statistical techniques were be used, focusing on the application of the Pearson correlation coefficient (r) and multiple linear regression analysis. Results: The research findings revealed that Beneficiaries perceive ZigamaCSSs saving services positively, with high satisfaction regarding interest rates (Mean=4.44, Std=0.78), accessibility (Mean=4.47, Std=0.75), and incentives for saving (Mean=4.49, Std=0.73). The societys credit services are highly regarded, with strong agreement on loan accessibility (Mean=4.38, Std=0.73), reasonable interest rates (Mean=4.35, Std=0.79), flexible loan repayment terms (Mean=4.41, Std=0.71), transparent credit approval process (Mean=4.37, Std=0.75), and positive impact on socio-economic status (Mean=4.37, Std=0.77). Training programs offered by Zigama CSS are effective, as indicated by high satisfaction with curriculum content (Mean=4.38, Std=0.73), delivery effectiveness (Mean=4.51, Std=0.69), active participation (Mean=4.22, Std=0.82), improved financial decision-making skills (Mean=4.56, Std=0.66), and strong recommendation to others (Mean=4.63, Std=0.62). There is a very strong positive correlation between SACCO services and the socio-economic development of beneficiaries (r = 0.937, p < .001), indicating that nearly 94% of the variance in beneficiaries socio-economic development can be explained by SACCO services. In conclusion, Zigama CSSs services significantly contribute to the socio-economic development of its beneficiaries, highlighting the importance of SACCO services in enhancing financial inclusion and well-being. Conclusion: Furthermore, the research made recommendations including the fact that SACCOs should prioritize customer satisfaction, expand financial education programs, ensure a supportive regulatory environment, and increase awareness about SACCO benefits. And also suggested areas that Further research could improve including comparative studies between SACCOs, longitudinal studies on SACCO impacts, qualitative studies on SACCO effectiveness, analyses of COVID-19 impacts, policy analyses, gender analyses, studies on technology adoption, and studies on SACCO impacts in rural communities.