SACCOS stands for “Savings and Credit Cooperative Society.” It is a type of financial institution that is owned and controlled by its members, who use its services to save money and borrow funds. SACCOS are often organized by groups of people with a common bond, such as employees of a company or members of a community. They operate on the principle of mutual self-help, where members pool their resources to provide financial services to each other at fair and reasonable rates. SACCOS can provide a variety of financial services, including savings accounts, loans, and insurance. The main difference between SACCOS and other financial institutions is that the profits generated by SACCOS are distributed among the members, rather than being paid out as dividends to shareholders.

The requirements for membership in a SSCF SACCOS membership include:

• Residency: Tanzanian.

• Age: 18 years or older.

• Share Capital: 10 minimum share equity @80,000 TSh

• Savings: Minimum 50,000/month 

• Occupation: Employees and Business Owners.

• Trustworthiness: Must complete KYC

For more details about SSCF Membership click here.

SSCF SACCOS have several advantages over traditional financial institutions, including:

• Affordability: SSCF is typically offering financial services at lower rates than commercial banks and other financial institutions. This is because we are not-for-profit organizations and the profits generated by SSCF are distributed among the members.
• Accessibility: SSCF SACCO is located in underserved or underbanked communities, making financial services more accessible to people who may not have access to traditional banking options.
• Flexibility: SSCF SACCOS is more flexible in our lending and borrowing practices than traditional banks. We’re more willing to work with members who have poor credit or a lack of collateral.
• Social Capital: SSCF SACCOS is based on the principle of mutual self-help, so members are more likely to trust and support each other. This  fosters a sense of community and social capital among members.
• Education and Training: SSCF SACCOS provides financial education and training to our members, helping them to better manage their money and make informed financial decisions.
• Member Control and Decision Making: SSCF SACCOS controlled by their members and the management is elected from the members. This means that members have a say in the direction and policies of the organization.
• Diversified Services: SSCF SACCOS provides diversified services like savings, credit, insurance, money transfer, and other services to their members.

In summary, SSCF is effective in providing accessible and affordable financial services to members, and they also foster a sense of community and empowerment among members.

While SSCF SACCOS have many advantages, we also have some disadvantages that should be considered:

• Limited services: SSCF have a limited range of services compared to traditional financial institutions, such as commercial banks. For example, we don’t offer credit cards, and foreign currency exchange.
• Limited access to capital: SSCF is smaller than traditional financial institutions and may not have the same access to capital. This can limit our ability to offer large loans or other financial services.
• Limited expertise: SSCF rely heavily on volunteers and part-time staffs which can limit our ability to provide professional and expert services.
• Lack of liquidity: SSCF is not able to offer instant access to savings like commercial banks. This can be an inconvenience for some members who need access to their funds quickly.
• Risky: SSCF is not always able to perform proper due diligence on members, which can lead to risky lending and high default rates.
• Dependence on Volunteers: SSCF rely heavily on volunteer labor which can be difficult to manage and maintain.

In summary, while SSCF provides valuable financial services to members, they may not have the same level of services and expertise as traditional financial institutions, and we may also have less oversight and regulation. It’s important to weigh the advantages and disadvantages of SSCF when deciding if we are the right financial institution for your needs.

Here are some tips to consider before joining any SACCOS:

1. Do your research: Look into the different SACCOS that are available in your area and compare their services, fees, and requirements. Make sure the SACCOS you’re interested in is registered and regulated by the relevant authorities.

2. Know the requirements: Understand the requirements for membership and make sure you are eligible to join.

3. Check the reputation: Look into the reputation of the SACCOS you are interested in. Check if they have a history of defaulting on loans, or if there have been any complaints from members.

4. Evaluate the services: Make sure the SACCOS offers the services you need, such as savings accounts, loans, and insurance.

5. Consider the fees: Compare the fees charged by different SACCOS, including account maintenance fees, loan origination fees, and penalties for late payments.

6. Check the terms of loan and savings: Be aware of the terms of the loan and savings offered by the SACCOS, including the interest rates, repayment terms, and penalties for late payments.

7. Evaluate the management: Find out who manages the SACCOS and their qualifications and track record.

8. Read the bylaws: Before joining, read the bylaws of the SACCOS. Make sure you understand the rules and regulations of the organization and that you agree with them.

9. Seek advice: If you have any doubts or concerns, seek advice from a financial advisor or the relevant regulatory authorities.

By following these tips, you can make an informed decision about whether a SACCOS is the right financial institution for you and ensure that you understand the terms and conditions of membership.

The board of directors of a SSCF has several key responsibilities, including:

1. Governance: The board is responsible for setting the overall direction and strategy of the SSCF, and for making sure that the organization is run in a way that is consistent with its mission and goals.

2. Compliance: The board is ensure that the SSCF is in compliance with all relevant laws and regulations, including those related to financial reporting and accounting.

3. Risk management: The board oversees the management of risks that the SSCF may face, including credit risk, liquidity risk, and operational risk.

4. Supervision: The board oversees the management of the SSCF, including the selection and performance of the management team.

5. Representation: The board represents the interests of the members of the SSCF and ensure that their needs are being met.

6. Financial performance: The board ensure that the SSCF is financially stable and that it is generating sufficient income to cover its expenses and provide a return to its members.

7. Member Education and Engagement: The board ensure that members are informed about the operations of the SSCF and their rights and responsibilities as members, and encourage participation of the members in the decision-making process.

8. Auditing: The board ensure that the SSCF’s financial statements are audited and that the results of the audit are reported to the members.

The qualifications for becoming a board member of a SACCO are governed by the Cooperative Societies Act, 2002 and regulations made there under. Some of the qualifications include:

1. Membership: Board members must be members of the SACCO they wish to serve on.

2. Experience: Board members should have experience and knowledge in areas such as finance, accounting, management, or law.

3. Education: Board members should have at least secondary education level, and it’s an added advantage to have a higher education level.

4. Skills: Board members should have the necessary skills to perform their duties, such as strategic thinking, financial literacy, risk management, and decision-making.

5. Time: Board members must be willing to commit their time and energy to the SSCF.

6. Good standing: Board members must not have any history of fraud, dishonesty or other related vices and should be of good standing with the SSCF.

7. Independence: Board members should not have any conflicting interest with the SSCF and should be able to make decision independently

8. Background check: Board members must pass a background check to ensure that they have no criminal record or other disqualifying factors.

In Tanzania, the Registrar of SACCOS (Savings and Credit Cooperative Organizations) is the Registrar of Cooperative Societies, who is responsible for the regulation and supervision of SACCOS in the country. The Registrar is appointed by the Minister responsible for cooperative societies and operates under the Ministry of Industry, Trade and Investment. The Registrar’s office is responsible for registering new SACCOS, supervising their operations, and ensuring that they comply with all relevant laws and regulations. The Registrar also plays a key role in the development of the SACCO sector by providing support and guidance to SACCOS, and by promoting the growth of the sector through various initiatives and programs.

You can get more SACCOS details here.