Expanding services and increased membership in savings and credit facilities RSTGA SACCO was established as a result of the efforts of Rungwe Smallholders Tea Development Trust Fund  which operates under Rungwe Smallholder Tea Growers Association, being the agent for development of the tea growers in the region. Before the SACCO was formalized the development trust fund facilitated farmers in the formation of savings and credit groups. After having facilitated these groups for 3 years the amount of farmers reached the stage that a more professional organization was needed for serving the financial needs of tea growers in Rungwe, and in 2008 RSTGA SACCO was founded and registered. 

RSTGA SACCO is currently providing savings and credit services to its members. Savings services are mostly used by members in order to be able to comply with the conditions for getting a loan. Most loans are agricultural production loans, most of them related to farmer inputs e.g. seeds and fertilizer and occasionally working capital. 

Targets set by RSTGA SACCO when it was formalised in 2008 was very ambitious. The aim was to reach 15,000 members of RSTGA tea producers within 5 years and have 8 branches all over Rungwe. Now, after 4 years this target appears to be too ambitious and the expectations have been tampered even though serious growth and reaching 10,000 members, of which the majority are small holder tea farmers, in the coming 5 years may not be beyond the horizon. The SACCO foresees a big growth in membership in the coming 2 years. 

The demand for loans is currently higher than what the SACCO can offer, the loan size does not allow for bigger investments. With the SACCOs growth ambitions the demand for credit will even increase. RSTGA SACCO seeks to expand it outreach to members and wants to provide them with more savings and credit services.

RSTGA SACCO seeks to expand it outreach to members and wants to provide them with savings and credit services. The potential for attracting new members is very large, currently the SACCO has 2,400 members, meanwhile RSTGA tea farmers has 15,000 individual members. The BoD and manager are convinced they can grow up to 10,000 members as some members of RSTGA tea farmers are located in very remote areas.    
At the moment about 90% of the members are tea growers. When expanding these percentages will remain more or less the same as RSTGA SACCO wants to open branches in the same area as were RSTGA is working with the tea farmers. RSTGA as a tea production and processing association owns 30% shares of WATCO, the tea processing company. In case RSTGA SACCO can expand membership it wants to offer besides the loan and savings facilities tea payment services directly from WATCO to the account of the members in RSTGA SACCO, instead of doing this via the commercial banks and village tea committees. 

One of the biggest challenges will be to improve the capacity of the GM, branch managers and the BoD as the level of skills is not sufficient the proposed growth. One of the risks is that trained staff finds work elsewhere, it is therefore important to review the staff incentives. Education of members and promotion of the SACCO is also very important, at the moment not much effort is placed in this area. Promotion of the SACCOS could be done by organizing events and document current successes which can motivate other farmers, including RSTGA members to join the SACCO. 

External support required
The support RSTGA SACCO is seeking is mainly in the area of training and education (see action plan Annex 2) as well as in the area of promotion and member education. Training and education for BoD, management and staff have not received proper attention,; a two-three year strengthening process will set in movement for the whole organisation and can lead to growth and professionalization of RSTGA SACCO. Fulfilling the need for training and education of members will lead to increased membership numbers.

The managers and BoD of RSTGA SACCO are able to train the members themselves when some funds would be available. For BoD, management and staff training and education external support is required. RSTGA SACCO mentioned that Dunduliza as well as SCCULT could be of use for providing tailor made training and education services.  

External support is needed for enhanced SMART strategic planning, SACCO governance and staff training on software, bookkeeping and the development of manuals of procedures and policies. External support in member education, promotion and marketing could also be areas in which the SACCO needs assistance for strengthening its capacity.  

Targets, expected output and impact: how does the business case contribute to the targets of team 1? 

Mention targets set for action planning period: 
•	% increase of at least 25% of the loan portfolio by the end of 2014, compared to the loan portfolio at December 31, 2012
•	Increase in membership from 2,400 at the end of 2012 to at least 4,000 the end of 2014 
•	External capital mobilization, another TSH 100,000,000 in the period 2013-2014. This could be a second loan via SELF for the period 2013-2014.   
•	A reviewed strategic plan with SMART targets and indicators.
•	By the end of 2013 the SACCO has an updated manual of procedures and a policy manual.     
•	As discussed during the mission it is advisable that RSTGA SACCO will start monitoring the performance of the SACCO through ratio analysis, for this the PEARLS key ratios are advised.
•	By the end of 2014 have a plan developed, in joint cooperation with RSTGA and the tea factory, for a pilot in processing tea payments through the SACCO, this should include, which conditions should be fulfilled by the SACCO, it is advisable to consult membership of RSTGA and RSTGA SACCO in doing so.

To expand the outreach to members and to provide them with savings and credit services.