Media Wire Express Correspondent
A credit rotation fund launched in September 2021 to support Savings and Credit Cooperative Societies (SACCOS) during the economic disruptions of the Covid-19 pandemic has provided significant relief to its members.
To date, 746 members have accessed loans through the fund, which was specifically created to bolster economic stability for small businesses and cooperative societies affected by the pandemic.
The initiative, managed by the German Sparkassenstiftung Eastern Africa (DSIK), has demonstrated remarkable growth and impact over the past three years. Stephen Safe, DSIK’s Country Director, shared that the fund’s value has surged to 1.2 billion Tanzanian shillings (TZS), reflecting a substantial 380 percent increase from its initial sum. Originally, the fund began with an allocation of 270 million TZS, provided to the Savings and Credit Cooperative Union League of Tanzania (SCCULT), an umbrella organisation for cooperative societies.
SCCULT has been instrumental in managing the distribution of these funds, ensuring that the resources reach cooperative members in need. The strategic allocation of these loans has enabled small businesses and cooperative societies to overcome financial challenges and sustain their operations despite the lingering effects of the pandemic. The loans have not only provided immediate financial support but have also facilitated long-term growth and development within these communities.
The increase in the fund’s circulation indicates its successful deployment in fostering financial inclusion and economic resilience. It has empowered cooperative members to reinvest in their businesses, diversify income sources, and navigate the complex economic landscape post-pandemic. This financial stability has, in turn, contributed to the broader economic recovery in the region.
Safe emphasized the transformative role of microfinance and cooperative movements in enhancing the livelihoods of individuals and communities.
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He noted that such initiatives are crucial for creating sustainable economic opportunities and reducing poverty. The success of the credit rotation fund serves as a model for similar interventions aimed at supporting small businesses and cooperative societies, particularly during times of crisis.
The DSIK and SCCULT collaboration illustrates the power of targeted financial support in revitalizing local economies and enabling communities to recover and thrive. As the fund continues to grow, it is expected to benefit even more cooperative members, fostering a more robust and resilient economic environment in the coming years.
