Impact of Saving and Credit Cooperative Societies on Members’ Livelihood. The Case of West Shoa, Oromia Region, Ethiopia

Abstract

There were problems with the inconsistent findings in the research title, Impact of Savings and Credit Cooperatives on Members’ Livelihood; the variables used by different authors and the theses available in this area were scarcely available. The purpose of this study was to examine the impacts of saving and credit cooperative societies on members' livelihoods in the case of West Shoa Zone, Oromia, Ethiopia. Primary and secondary data sources were used. The primary data source was collected through direct interviews based on semi-structured questionnaires from 90 SACCO members or treated and 107 non-members or controlled groups, plus discussions with two informant groups held in two districts of the study area. The study used a cross-sectional survey research design, and multistage sampling techniques were employed. The survey data were analyzed through the quantitative method and used descriptive statistics and inferential statistics such as logit and propensity score matching econometrics models. The study findings show that sex, age, family size, education level, interest in borrowing, access to training, number of loans received, saving, and distance to the market place are the main factors affecting saving and credit cooperative membership. The impact evaluation finding based on household income measurements shows that saving and credit participants gained more income than non-participants, and consumption expenditure measurements show saving and credit cooperative participants spent more on consumption than non-participants. And also, there is a significant difference in asset accumulation between households of SACCO participants and non-participants. SACCO participants own more assets than non-participants in SACCO. Finally, researchers recommend SACCOs should seriously work to increase membership by using different promotion mechanisms in order to benefit wide communities, expand impacts to all, improve household livelihoods, and take part in the country's development plan.