MEMBER PARTICIPATION IN SAVINGS AND CREDIT COOPERATIVES: BENEFITS AND CHALLENGES
Authors:
Henry Buwule Musoke (Ph.D.)
Abstract:
Members in all cooperatives including Savings and Credit Cooperatives (SACCOs) need to actively participate in activities of their organisations. Participation provides the necessary impetus for not only the growth of SACCOs but also the social and economic development of members. SACCOs should be formed basing on members interests and relevant services should be offered to meet their needs so as to attract active and effective membership participation in terms of governance and involvement in decision making. Active participation is very important because it gives space for members to implement control mechanism in governance more effectively, create a competitive advantage and simplifies the process that could lead to change in a SACCO to provide better benefits to increase the commitment and loyalty of the members. Active participation is based on members trust who share a common bond. When members’ needs are not met by the SACCOs’ standardized financial services, some members may become inactive participators. SACCOs should adhere to all cooperative principles and values and give a wide range of high-quality products and services in order to boost membership participation.