Role of SACCOs in poverty reduction among farmers in Uganda: a case study of Nangabo Parish

Abstract

This study sought to explore the role of SACCOs in poverty reduction in Nangabo Parish. This study was guided by three specific objectives: (a) to determine the respondent’s profile in terms of gender, age, marital status, level of education, and experience; (b) to determine the level of contribution of SACCO to farmers and (c) to determine the relationship between the contribution of SACCO to farmers in the study area. Primary data was used and it was analyzed at two levels. Data analysis using SPSS descriptive statistics generated frequencies and percentages on the profile of respondents that showed that the majority of the respondents were male, and fellow in the age brackets of 30-39. Half of the respondents were married, when it came to the level of education, the majority of the respondent were diploma holders. In terms of experience or loan duration, most customers acquire relatively long-term loans starting from 5 years and above. According to respondents’ views, the finding revealed that were is a very high-level contribution of SACCO to the performance of farmers. Data analysis using SPSS descriptive statistics showing means revealed the contribution of SACCO stands at means. On the other hand, when it came to performance due to finances they received from SACCO, the study revealed that it was also very high. Concerning the relationship between the study variables’ Contribution of SACCO to the performance of farmers, the findings generated while using Pearson Linear Correlation Coefficient (PLCC) showed a positive and significant relationship between the variables. And lastly, regression analysis showed that farmer performance accounts to a 17% variation in the contribution of SACC. Therefore, the researcher recommended; continuous sensitization of the public about how to use savings services and the benefits as well as costs that accrue from them, establishment of a legal system governing loan payments and guarantee that can help creditors to pay their loans, mobilization of adequate capital to meet all the financial needs of all the members' especially educated and high-income earners, regular and constant awards of either certificate, prizes acknowledgments any other forms of reward to the best and regular savers to motivate others to save.