Indicative Factors for SACCOs Failure in Tanzania


  • Cosmas Magashi Department of Information Technology, System Development, and Management (ITSDM), Nelson Mandela African Institution of Science and Technology (NM-AIST), Tanzania
  • Anael Sam Department of Information Technology, System Development, and Management (ITSDM), Nelson Mandela African Institution of Science and Technology (NM-AIST), Tanzania
  • John Agbinya School of Information Technology and Engineering, Melbourne Institute of Technology (MIT), Australia
  • Jimmy Mbelwa Department of Computer Science and Engineering, University of Dar es Salaam (UDSM), Tanzania
Volume: 13 | Issue: 4 | Pages: 11177-11181 | August 2023 |


SACCOs are viewed as a feasible opportunity toward financial inclusion in an economy where most of the citizens are poor, as they are very essential for the socio-economic development of members, the community, and the world at large. However, SACCOs sometimes do not realize the expected socio-economic potential, especially when they fail. This study aimed to comprehensively assess financial and non-financial factors, at institutional and personal levels, that contribute to the failure of SACCOS in Tanzania. The data were collected using a questionnaire on 5,000 members of SACCOs, obtained using stratified random sampling. Data collected were analyzed using descriptive statistics and binary logistic regression. The findings showed that both financial and non-financial factors, at personal and institutional levels, had a statistically significant and positive relationship with the failure of SACCOs. Therefore, the performance of SACCOs and other Microfinance Financial Institutions (MFIs) should be addressed from a comprehensive view of both financial and non-financial factors, at personal or institutional levels. In other words, the failure of MFIs should be addressed from a holistic point of view.


SACCOs failure, financial factors, non-financial factors


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How to Cite

C. Magashi, A. Sam, J. Agbinya, and J. Mbelwa, “Indicative Factors for SACCOs Failure in Tanzania”, Eng. Technol. Appl. Sci. Res., vol. 13, no. 4, pp. 11177–11181, Aug. 2023.


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