Determinants of Farmers Participation in Saving and Credit Cooperatives (SACCO): The Case of Offa Woreda, Wolaita Zone, Southern Ethiopia

Abstract

The aims of saving and credit co-operatives have always been to mobilize savings from middle-and low-income groups and supply credit to their members. A savings and credit cooperative is an association of people who come together with common goals to improve their livelihood economically. The study’s general objective was to identify the determinants of farmers’ participation in saving and credit cooperatives in Offa woreda. The study applied mixed research methodologies to collect the quantitative and qualitative research methods and analyze the respective sources through the interview schedule and checklists. The total sample of the study was 315 households in the study area. The collected data was analyzed using econometric and descriptive methods. Data analysis was employed to identify determinants of participation in saving and credit cooperatives. Econometric analysis was employed to identify the all-over determinants participation of sample SACCO members, and descriptive analysis was used to identify socioeconomic and demographic characteristics of SACCO’s farmers. Of the 11 variables expected to influence household participation in SACCO, six (6) variables were found to be the critical factors influencing the status of household participation in SACCO in the study area. These variables include household education, family size, income, service delivery, training and livestock number of respondents. The household’s educational status should be considered before target selection for the organizing on SACCO. When households become educated, they have good knowledge of managing resources and participate in high status.