DODOMA, December 23, 2024 — The total assets of Savings and Credit Cooperative Organisations [SACCOs] in Tanzania rose to TZS 1.46 trillion in 2024 from TZS 1.33trn in 2023, representing an increase of TZS 133 billion, or 9.94 per cent, according to the latest sectoral report.
Total savings and deposits
Dubbed, Annual Report on Operations, Performance and Supervision of SACCOs in Tanzania, 2024, The report, produced by the Tanzania Cooperative Development Commission [TCDC], shows that total savings and deposits mobilised by SACCOs increased to TZS 1.056trn in 2024, up from TZS 966.94bln recorded in 2023, a growth of 9.23 percent.
“This growth is attributed to an increase in the number of licensed SACCOs, service delivery innovations, expanded access channels and enhanced operational creativity, says the report. “These factors reflect growing confidence among members and a steady rise in savings to support economic activities.”
Registered SACCOs
During the same period, the number of registered SACCOs increased from 1,283 in December 2023 to 1,362 in December 2024, a rise of 9 percent. This growth indicates improved regulatory compliance and stronger sector performance.
The increase in licensed SACCOs also contributed to significant growth in share capital and core capital. Core capital rose to TZS 201.99bln in December 2024 from TZS 180.04bln in the previous year, reflecting a growth rate of 12.19 percent and demonstrating enhanced financial capacity within the sector.
Capital adequacy
The Core Capital Adequacy Ratio remained strong at 13.83 per cent, well above the minimum regulatory requirement of 8 per cent. However, institutional capital fell below the required threshold of 6 per cent, standing at 4.01 percent.
The report warns that the decline in institutional capital poses a serious risk to members’ savings, as such capital is critical for covering fixed operational costs and ensuring the long-term sustainability of SACCOs.
Loan portfolio
Total outstanding loans increased by 8.08 percent to TZS 1.203trn in December 2024, compared with TZS 1.113trn in December 2023. Loans accounted for 82 percent of total SACCO assets during the period, exceeding the recommended range of 70–80 percent under World Council of Credit Unions [WOCCU] best practice standards.
The growth in lending was driven by increased member shares, higher core capital, growth in savings and deposits, and external borrowing.
Loan preferences
The report indicates that most SACCO members preferred loans with repayment periods of one to three years. This category amounted to TZS 653.72bln in 2024, representing 54.34 percent of the total loan portfolio, up from TZS 580.96bln [52 percent] in 2023.
Loans with repayment periods exceeding three years formed the second-largest category, totalling TZS 294.49bln in 2024, or 24.48 per cent of the portfolio. This compares with TZS 239.94bln, representing 26 per cent, in 2023.
Short-term loans repayable within one-year totalled TZS 248.90bln in 2024, accounting for 20.69 per cent of the portfolio, compared with TZS 239.93bln [21 percent] in the previous year.
Inter-SACCO lending, where where financially stable SACCOs extend credit to those facing liquidity constraints, where accounted for a small share of the loan portfolio. In 2024, TZS 5.89bln was issued under this arrangement, representing 0.49 per cent of net loans, up from TZS 2.55bln [0.23 percent] in 2023.
Investment
The value of investments declined by 11.5 percent, from TZS 61.3bln in 2023 to TZS 54.25bln in 2024. Investments accounted for 5 per cent of total assets, while fixed assets and other assets contributed TZS 34.49bln [2.29 percent] and TZS 7.58bln [0.52 percent] respectively during the reporting period.
Membership and women’s representation
The report says SACCO membership and beneficiaries increased slightly from 1,814,803 in December 2023 to 1,850,683 in December 2024, representing a 2 percent rise.
“Women’s representation on SACCO boards increased to 1,789 in 2024 from 1,684 in 2023, reflecting a growth rate of 2.33 percent. Similarly, the number of women serving on Supervisory Committees rose to 882 in 2024 from 797 in 2023, an increase of 9.63 per cent. However, their overall share declined marginally to 32.91 percent in 2024 from 33.74 per cent in the previous year,” indicates the report.
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