Effects of saving and credit cooperative organizations in farmers’ household condition in doyogena woreda kembata tembaro zone snnpr ethiopia

Abstract

The study was carried out in Doyogena district, Kembata Tembaro Zone of southern Ethiopia to assess the awareness of farmers on saving and credit cooperatives, and examine the effect of SACCO‟s on household income generation. Multistage sampling procedure was used to select sample households. Structured interview questionnaires were prepared to collect brief information from the sample households by preparing interview schedule, focused group discussion and personal observation. For data analysis descriptive statistics like mean, frequency, percentages are used for quantitative data. In the study area, about 57.35% of respondents are member of saving and credit service in the study area. The age, sex and educational status of household determine the cooperative member of saving and credit services. About 97.43% households are a member of cooperative saving and credit services in the age group of 30-65 years, whereas for age of households between 18-29 years were 2.57 % in study area. About 97.43% of male household are a members saving and credit services.About 56.42% of sampled households are those who able to read and write were a member of saving and credits organization. The access to awareness (63.23%), income generation are >500ETB per months 41.23% respondents those are a member of SACCOs and 24.13% for non-members, un satisfy on adequacy and timeline less of loan and recovery rate(54.54%),weak governance and weak financial management system arethe effects saving and credit service of cooperative organization in study area. Most the users of agricultural input 12(51.61%) are the members of SACCOs. This might be due to use credit from SACCOs. But non-members of cooperative are not using agricultural inputs as members SACCO due to lack credit. Therefore, creation of awareness for members and non-members, and cooperative leaders important for saving and credit services in the study area.