DAR ES SALAAM — Tanzania’s savings and credit cooperative societies (SACCOS) recorded combined assets of TZS 1.69 trillion, representing annual growth of approximately 16 percent and highlighting the role of cooperative finance in the country’s financial system.
The sector had 981 SACCOS serving around 1.9 million members as of December 2025. The growth in assets reflects the scale of financial resources managed by cooperatives, which provide savings and credit services to members across different communities and economic activities.
SACCOS can be particularly relevant to farmers, traders, workers, and small-business owners who may find it difficult to access financing through conventional banking channels. By pooling member savings, cooperatives can provide loans for business activities, household needs and productive investment, subject to their lending rules and members’ eligibility.
For small businesses, access to suitable credit can help finance inventory, purchase equipment, manage seasonal expenses and respond to changes in customer demand. Cooperative finance can also help members build savings habits and develop a relationship with a financial institution.
However, an increase in total assets does not automatically mean that all members can borrow more or that every cooperative is financially strong. The quality of loans, governance, liquidity, management, and protection of members’ savings remain important to the sector’s sustainability.
Digital systems could help SACCOS improve record-keeping, service delivery and transaction monitoring. Stronger governance and transparent reporting are also important for maintaining member confidence and ensuring that savings are managed responsibly.
For cooperatives, growth creates an opportunity to improve their services while strengthening risk management. Members should understand loan terms, repayment obligations, fees, and the financial position of their own cooperative before making borrowing decisions.
The sector’s expansion demonstrates the importance of locally rooted financial institutions. Its long-term contribution will depend on whether growth is accompanied by sound management, responsible lending and reliable protection of members’ funds.