Saving and Credit Cooperatives Services and Socio-economic Empowerment of Teachers in Rwanda
Abstract
The provision of better services to members of UMWALIMU SACCO in Rwanda especially in Nyagatare branch, enhance the socio-economic empowerment of teachers ready to get various service and build their lives. The purpose of this paper was to investigate the effect of credit services on members social economic empowerment at Sacco in Nyagatare. This paper adopted survey descriptive research design. The target population was 140 people and sample size was 72 respondents using solvin formula. The data was collected by using questionnaire and interview guide and analyzed using SPSS software version 21 for quantitative findings and thematic approach for qualitative approach. The findings indicated that the amount borrowed depended on the savings made and shares owned, amount borrowed linked to the purpose of the loan, amount borrowed being adequate to undertake a reasonable investments were all friendly. On credit period, results showed that credit period depending on the type of the loan, credit period changing with the size of the loan and affordable credit period were friendly to members. However, members not aware of the policies on credit period and credit periods given by SACCO not favorable for business growth were not favorable to members. The findings also revealed that the increase of SACCOs services (receive cash deposit, Grant loans, provision of salary advance and accept collateral for loans) can affect starting new business and expending the existing business at 95.3%. This implies that the remaining 4.7% can be affected by other variables. The findings also revealed that the increase of SACCOs services can affect the members investments opportunity at the level of 96.2% while the remaining 3.8% can be affected by other variables. Though, the increase of SACCOs services can also affect members health members at 96.4%. This also implies that the remaining 3.6% can be affected by other variables. However, it was also showed that there is a statistical relationship between saving money using saving account and investing in other business r = .880 and P-value = .000 < .05. This paper also recommends that SACCO should allow its members to withdraw their savings as needed and the minimum balance and be friendly to members.
Keywords: Saving and Credit Cooperatives, Socio-Economic, Empowerment, Teachers & Rwanda.
References
Adam, D. W., & Nhman, G. (2003). Borrowing Costs and the Demand for Rural Credit.
Adams, D., & Von, P. (2004). Micro enterprise Credit Programmes: “Déjà vu” World Development, Vol 20 pp 1463-1470.
Adera, A. (2008). Instituting Effective Linkages between Formal and Informal Financial Agenda in Africa.
Ahimbisibwe, F. (2007). The effects of savings and credit cooperatives on members’ saving culture. Report to Ntungamo District. And Oxford: Oxford University Press.
Atwongyeire, R. (2010) .The contribution of cooperative savings and credit society towards development of small scale business. Research report submitted to Makerere Business School Kampala Uganda.
Binswager, H.P., & Khandker, S. (2005). The impact of formal finance on the polar economy of India. The Journal of Development studies Vol.32 No.2.
Bolnick, R. (2012). Evaluating loan collection performance; An Indonesian example: World Development Vol 16 pp 501-510. Cases. New York: McGraw-Hill, Inc, 1981, p.362
Cheston, S. & Kuhn, D. (2007). Empowering Women through Microfinance. Draft Report Research Sponsored by Women’s opportunity Fund and Gems of Hope, USA.
Coleman, B. (2006). The impact of group lending in Northeast Thailand. Journal of development economics, Vol 60 pp105-141.
Dimitri, C. (2004). Understanding Rural Development with Cheap Credit, Research observer.
Gatete, L., Torgny, H., Micheal, A. & Daniel, D. (2004). Aid and Reform in Rwanda.
Gittel, H., & Vidal, R. (2004). Assessing the impact of Women’s Savings and Credit programmes on household poverty: Impact studies, In Finance Journal, 9(4), pp 18-26.
Hanning, A., & Bohnstedt, A. (2011). Sharing the market for a Mature Microfinance sector in Uganda. Journal of the Uganda Institute of Bankers, Vol 7 No 4 pp24-26.
Hossain, M. (2003). Credit for the alleviation of Rural Poverty: The Grameen Bank in Bangladesh IFPRI Research Report No 65.Washington DC.
Huidhes, F. (2000). Rural Finance markets. An important Tool to Fight Poverty. Quarterly Journal of International Agriculture, Vol.34 No 2 pp 105-108.
Hulme, D. (2001). Impact assessment Methodologies for Microfinance Theory, Experience and Better Practice University of Manchester, Manchester UK.
Kabuga, C., & Batarinyebwa, P. (2003) Cooperatives: Past, Present and Future, 1st Ed. Rwanda Cooperative Alliance Ltd.
Kabuga, C. (2003). Cooperative Movement in Rwanda, 1st Ed. Fountain Publishers.
Karamagi, J. (2011). Microfinance Loan Terms and Economic Empowerment of Rural Women in Uganda. A Dissertation Submitted to Ndejje University, Kampala Uganda.
Katimbo, M. (2012). Policies of regulating and supervising Microfinance. The Journal of the Uganda Institute of Bankers, Vol. 7 No 4 pp 20-23.
Kholeka, B. (2004). An evaluative study of the psychology collection at the University of Transkei.
Kyamulesire, A., R. (2002). A History of the Uganda Cooperative Movement, UCA Ltd.
Ledgerwood, B. (2002). The Uganda Microfinance Industry: Prospects for regulation. Journal of Uganda Institute of Bankers, Vol.10, 4, pp21-25
Ledgerwood, J. (2007). Sustainable Banking with the Poor: Microfinance Hand Book, an Institutional and Financial Perspective First Ed. Washington DC
Lipsey, R.G., & Chrystal, K. (2001).An introduction to Positive Economics, 8th Ed.
Logemann, J. (2012). The Development of Consumer Credit in Global Perspective: Business, Regulation, and Culture. New York: Palgrave Macmillan.
Marguerite, S. (2001). The Microfinance Revolution: Sustainable Finance for the Poor, Washington, D.C. The World Bank, Open Society Institute.
Martin, J. (2007). Managing credit for the rural poor. Lessons from Grameen Bank. Microfinance Institutions in Africa. Microsave-Africa, 2000.
Muhendo, J. (2011). Microfinance Institutions Credit Terms and Performance Of selected small Enterprises. Kigali, Rwanda.
Muhwezi, M. (2010). Microfinance and Women empowerment in Uganda. Research report submitted to School of Post Graduate studies Ndejje University Kampala Uganda.
Nsubuga, J. (2004). Recognizing the role of cooperative savings and credit society in Uganda. Research report submitted to Makerere University Business School Kampala Uganda.
Nugroho,Y.& Miles, I. (2009). Global Reviewing of Innovation Intelligence and Policy studies; Mini study 06-Microfinance and innovation. A Project of DG Enterprise and Industry, University of Manchester.
Obina, S. (2009). Microfinance lending methodologies, Microcredit and Women empowerment in Rwanda, IRC Concept Note.
Okurut, F, Nathan, M. & Mukungu, A. (2004). Microfinance and poverty reduction in Uganda: Achievements and challenges: Economic Policy Research Center. Research series No.41.
Rahman, A. (2006). Women and Microcredit in Rural Bangladesh: An Anthropological study of Grameen Bank lending. Boulder, CO: Westview Press.
RCA, (2006). Old Age Saving Insurance Scheme Training Manual Kigali CRFS Unit.
Sanderate,N.(2001). An analytical approach to small farmer loan defaults. Savings and Development no 11, pp 270-330.
Sector in Africa. A Proposal “Savings and Development, 1/1995:5-22.
Tanzania Federation of cooperatives (2006). Cooperatives and development in Tanzania. At http/www.tzonline.org/pdf/cooperativepolicy.pdf
Tendler, J. (2003). Whatever happened in poverty alleviation. The Ford Foundation New York. The workshop of Women’s empowerment or Feminization of Debt. Towards a New
Thomas, K. (2007). SACCO saving product development training guide: USAID funded project. Chemonics international Inc.
Todaro, P. (2002).Economic Development. Addison Wesley Publishing Company.
Uchtman, D.L., Looney, N., & Krausz, H. (2005). Agricultural Law: Principles and Uganda, Research Report submitted to Makerere University Business School.
Von, P. (2004). Finance At the Frontier: Debt Capacity and the Role of Credit in The Private Economy. EDI Development Studies. Washington DC: World Bank.
Wasswa, B. (2000). Small Scale Business, 2nd Ed. The Business Publishing Group, Kampala Uganda. World Bank Development vol.2. No 1
Wright, A. (2000). A critical review of savings services in Africa and Elsewhere.
Yawe, A. (2002). Engendering Services: Beyond Access Microfinance.
Yunus, M. (2007). Creating a World without Poverty, Public Affairs, New York. ZIGAMA Magazine (2012). Financial Literacy a Pillar of Development. Vol 1 No 1.