Factors Affecting Saving Practices of Members of Rural&Urban Saving and Credit Cooperatives: Evidence from Kucha Woreda, Gamo Gofa Zone, Snnprs, Ethiopia

Tefera Tanga


The study was conducted to assess factors affecting saving practices of members of saving and credit cooperatives (SACCOs) in Gamo Gofa zone kucha woreda of SNNP region, Ethiopia. The study was achieved on selected 392 respondents. The selection of members was done using simple random sampling method based on convenient sampling method due to time and budget constraints. Semi structured questionnaire was administered by interviewing each respondent and filling the questionnaire. A response rate of 100% (392 respondents) was achieved. Data was analyzed using multiple linear regression model to test relationships between the dependent and independent variables included in the study. The dependent variable is saving practice of SACCOs members and the independent variables are annual income, training participation, credit received from the SACCOs, age of the respondent, dependency ratio, family size, education status, savings before joining the SACCO, and contribution of family members of their livelihood. The members of SACCOs save if they are provided with trainings and credit as per their need and their income level and education status also affect their saving level. Therefore, the following major recommendations were made: government, NGOs and other stakeholders should work on strengthening the capacities of SACCOs to enable them provide customized trainings for their members, appropriate credit services like increasing the amount of credit they provide through linkage with other financial institutions and arrangement of injection of outside money and activities which can increase the level and diversification of income of their members in order to mobilize savings effectively and efficiently.

Keywords: Saving practices, SACCOs, Members

DOI: 10.7176/JESD/10-1-02

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