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Participation in saving and credit cooperatives (saccos) and its impact on households’ wellbeing in gurage zone, southern Ethiopia

Author: 
Samuel Chimdi, Jemal Abafita and Lemma Shallo
Subject Area: 
Social Sciences and Humanities
Abstract: 

The purpose of this study was to examine impacts of saving and credit cooperative societies on household wellbeing in Gurage Zone, SNNPR, Ethiopia. Primary and secondary sources were used. The primary data source was collected through direct interviews based on semi structured questionnaires from 90 treated and 112 controlled group plus discussion with three informant group and extra with staffs of two unions .The study was used a cross- sectional survey research design, and the multistage sampling techniques was employed. The survey data were analyzed through quantitative method, and used descriptive statistics and inferentially statistics logit and propensity score matching econometrics model. The study finding shows age, education, training, loan, interest rate, income sources are the main factors affecting saving and credit cooperative membership participation. The impact evaluation finding based on household asset accumulation measurements shows saving and credit cooperative participants were more own asset than non-participants. However, there is no significant difference between income and consumption among membership participants and non-participants. Finally, researcher recommend saving and credit cooperatives should seriously work to develop members entrepreneurial talent and promoting members to investing on off-farm and non-farm rather than invest on fixed asset activities to improve household wellbeing.

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