Challenges faced by Saccos – part one
Challenges faced by Saccos – part one Since their inception, SACCOs have played a pivotal role in savings within the African culture. Over years, they have evolved to become more efficient. However, the needs of their members have evolved at a quicker rate, leading to a slight disconnect. This has created several challenges for SACCOs which we will be discussing in a three part series titled “Challenges faced by Saccos”.
Insufficient entrepreneurial vision
To achieve better growth and development, a SACCO must have the skills and vision necessary to meet members' increasing needs. A SACCO that is unable to develop and provide individualized financial services to their members may find that their numbers slowly begin to dwindle.
Members are unaware of their group’s ideas and goals
Every person who joins a SACCO may have a distinct reason for doing so. This is true for millions of Africans who are members of various SACCOs. Often times, if there is no proper discussion of what both the SACCO and member expect from each other, a barrier of understanding is created. Most people who are members of a sacco are unfamiliar with their sacco's ideas and systems, which could lead to disagreement over how to carry out strategic choices, leading to delayed growth. In order to solve this, one should be taken through the SACCO’s values and vision, before they join the SACCO.