THE CONTRIBUTION OF SAVINGS AND CREDIT COOPERATIVES TO SOCIO-ECONOMIC DEVELOPMENT OF RWANDA CASE STUDY OF UMURENGE SACCO, GASABO DISTRICT (2015-2024)

Abstract

This study was to assess the contribution of savings and credit cooperatives to socio-economic development of Uremunge SACCO’s beneficiaries in Gasabo District. In particular the study sought to analyse the status of Umurenge SACCO beneficiaries; to find out customers perception of towards Umurenge SACCO products and services; to evaluate the contribution of Umurenge SACCO on socio-economic development of Gasabo District and to evaluate the association among Umurenge SACCO’s financial products and the welfare of beneficiaries. The researcher used descriptive research design and the population of this research was 22,480 Umurenge SACCO members in Gasabo District while the sample size was 400 respondents selected using stratified and convenience sampling. Both primary and secondary data were used and primary data was collected using questionnaire and interview and, while secondary data was collected using documentations techniques whereby, Manual of procedures and Credit policies of Umurenge SACCO and financial reports have been consulted. The analysis of data was done using SPSS version 23.0. The results illustrated in table 4.24, the model is significant and explain significantly the economic development with F= 17.633 and sig. = .000 allowed the researcher conclude that pro-poor services programs, saving mobilization, and loan services contribute significantly to the economic development in Rwanda specifically Umurenge SACCO in Gasabo District. There is a public perception that SACCOs provide faster service, have better customer care and lower account fees than banks. Study findings indicate that SACCO members are more likely to trust Umurenge SACCOs than commercial banks, especially in rural areas. Therefore, Umurenge SACCO should provide frequent and regular trainings on business management to their members. This could help members for good management of their loans and reducing loan defaulters’ cases at Umurenge SACCO