ASSESSING THE PERFORMANCE OF SAVING AND CREDIT COOPERATIVES (SACCOS) IN HAWELTI SUB-CITY, ETHIOPIA

Abstract

This study aimed to assess the performance of Saving and Credit Cooperatives (SACCOs) in Hawelti Sub-city, Ethiopia. A mixed quantitative and qualitative research approach was employed, and data were collected from both primary and secondary sources. A random sampling technique was used to select 214 respondents from the sample population, and data were collected using questionnaires and interviews. The PEARLS model was employed to analyze the financial performance of SACCOs. The results showed that SACCOs provided decent services in terms of diversified products of saving and loans, and through the provision of loans, members achieved a significant change in their living standards. However, SACCOs faced challenges such as lack of governance, weak financial monitoring system, poor saving culture, lack of hiring professional manpower, and the absence of training and education. SACCOs' membership increased, but not to the standard, and the promotion was deemed inefficient and ineffective. Regarding financial performance, the saving deposit and total assets of SACCOs achieved tremendous growth. However, the net loan portfolio was below the standard and faced serious liquidity problems. The study recommended creating awareness among members regarding their rights and by-laws, hiring required professionals, and developing and introducing financial regulatory and monitoring systems