Technology, good governance key to stronger SACCOS in Africa

AS financial services increasingly move towards digital platforms, savings and credit cooperative societies (SACCOs) across Africa face growing pressure to modernise their operations, strengthen accountability and develop services that respond to the needs of a younger generation.

For millions of people who depend on cooperatives to save money, access loans and finance economic activities, the ability of these institutions to adapt to technological changes is becoming increasingly important.

Beyond providing financial services, strong cooperatives can help households improve their livelihoods, support small businesses and widen opportunities for people who struggle to access conventional banking services.

These issues are taking centre stage at the 26th African Savings and Credit Cooperatives Congress (SACOS Congress 2026), currently taking place in Dar es Salaam.

The gathering has brought together more than 1,300 participants from over 28 countries to exchange experiences, examine challenges facing the cooperative movement and identify strategies for improving its performance across the continent.

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Tanzania Federation of Cooperatives (TFC), Chief Executive Officer, Mr Fares Muganda said cooperatives needed to embrace modern technology, including artificial intelligence (AI), to improve efficiency, attract young people and women, and expand their contribution to economic development.

“The world today is driven by science and technology, and we cannot run away from it. This means our institutions cannot continue operating in the old ways. They have to adapt to emerging challenges and ensure that new technologies are incorporated into their activities so that they can reach more people,” he said.

Mr Muganda explained that technology was no longer simply an additional tool for institutions seeking to improve their performance, but an increasingly important part of modern economic participation. He said cooperatives needed to understand the interests of younger generations and create services that reflected their expectations, particularly as Tanzania pursued broader economic inclusion under its Development Vision 2050.

“Young people are a significant part of today’s population. When you look at our national policies and Tanzania’s Development Vision 2050, we are talking about how to bring young people and women into the economy. Without engaging them in areas they are interested in, such as technology, it becomes difficult to reach them,” he said.

His remarks point to a challenge facing cooperatives throughout the continent: how to preserve the collective values on which the movement was established while adapting to changing lifestyles, financial needs and technological expectations.

For young people who increasingly depend on digital platforms to communicate, access information and conduct transactions, cooperative societies that rely exclusively on conventional processes risk becoming less attractive. Digital services can help bridge that gap by making membership more convenient and improving access to financial information.

Mr Muganda said technological solutions could help cooperatives modernise their operations, improve communication with members and develop services that respond to changing economic conditions.

He explained that TFC’s work covered several cooperative sectors, including agriculture, fishing, transport, housing, mining and savings and credit. Modern systems, he said, could help institutions across these sectors improve their operations and serve members more effectively.

However, the adoption of technology requires more than acquiring digital systems. Cooperative leaders must also strengthen management practices, maintain reliable records and ensure that members’ interests remain central to institutional decisions.

Registrar of Cooperatives, Dr Benson Ndiege said technology was essential in improving the management of SACCOs, particularly by strengthening record-keeping, increasing access to accurate data and simplifying the delivery of services. He said digital platforms could allow members to check their account balances and apply for loans without travelling to their societies’ offices, saving time and making financial services more accessible.

“When you use technology, you simplify the activities taking place. As a member of a savings and credit cooperative society, you can access your account balance and apply for a loan from wherever you are. You do not need to travel to the society’s office to obtain that information,” he said.

Dr Ndiege added that digital systems could help cooperative leaders understand their institutions’ financial positions, including members’ contributions and loan repayment patterns. Such information is important because decisions about lending, savings mobilisation and institutional growth depend on accurate records.

Without reliable data, cooperatives may struggle to identify financial weaknesses, prepare realistic plans or determine whether their policies are producing the intended results.

He said the availability of dependable statistics could support better planning and help societies develop strategies based on their actual performance rather than assumptions. Record management is another area where technology can make a difference.

Dr Ndiege said cooperatives had previously experienced difficulties associated with paper-based records, which could be misplaced or lost, making it harder to establish what transactions had taken place.

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Digital record-keeping, he explained, could improve the preservation and retrieval of information, helping institutions strengthen transparency and accountability. The benefits extend beyond administrative convenience.

Reliable records can help members understand how their savings are managed, enable leaders to identify irregularities and provide a stronger basis for building confidence in cooperative institutions.

Trust is particularly important in SACCOs because their operations depend on members pooling their resources with the expectation that their money will be managed responsibly and made available according to agreed procedures.

Dr Ndiege said improving governance and adopting technology were important steps towards strengthening the sector and increasing its competitiveness. He also encouraged Tanzanian cooperatives to learn from other African countries, citing Kenya as an example discussed during the congress in relation to SACCO performance.

He said Tanzania needed to improve its systems and performance to compete more effectively at continental and international levels. The congress has included training and discussions on governance, management, technology, statistics and ways of increasing the participation of women and young people. The sessions are intended to help participants identify practical approaches that can be applied in their respective institutions.

For the lessons to produce lasting results, however, cooperative leaders will need to translate the discussions into changes in their daily operations. These may include improving financial records, strengthening internal controls, expanding digital access and ensuring that members understand the services available to them.

SCOS Tanzania Chief Executive Officer, Mr Hassan Mnyone said the congress provided an opportunity to assess the progress of the SACCO sector, identify challenges and develop strategies for future growth. He said Tanzania’s hosting of the event was important not only for the cooperative movement but also for the wider economy, as international conferences create demand for accommodation, transport, food and other services provided by local businesses.

Mr Mnyone said the presence of participants from more than 28 countries also offered an opportunity to promote Tanzania as a destination for international meetings while strengthening professional relationships among cooperative stakeholders. He said the sector had made progress in improving leadership, legal compliance and strategic planning over the past seven to eight years, with the aim of making SACCOs stronger and more competitive.

During the congress, Mr Mnyone received a Visionary Award presented by AKOSCA. He described the recognition as an acknowledgement of collective efforts to strengthen the savings and credit cooperative sector rather than an individual achievement.

“For me, this award has historical significance because it reminds me of where we started in the work of revitalising the savings and credit cooperative sector and protecting the interests of SACCOs in the country,” he said.

He credited cooperative societies, government institutions and development partners for contributing to the sector’s progress, naming the Ministry of Agriculture, the Tanzania Cooperative Development Commission and other stakeholders among those involved in the work.

According to Mr Mnyone, data for 2025 showed that SACCOs in Tanzania had accumulated assets worth approximately 1.6 trillion shillings and served about two million members. He said the membership figure demonstrated the sector’s potential to reach even more people, including members’ families who may benefit indirectly when access to savings and credit helps households meet financial needs and support economic activities. The figures also illustrate why effective governance and modern systems matter.

As cooperative institutions expand, managing larger volumes of savings, loans and member information requires reliable processes that protect resources and support responsible growth.

The congress therefore provides an opportunity to connect discussions on technology with the wider questions of trust, financial inclusion and institutional performance. Digital systems can improve efficiency, but their value ultimately depends on sound management, responsible use of information and the ability of cooperatives to meet their members’ needs.

As the gathering approaches its conclusion on October 16, participants are expected to take the lessons learned back to their institutions and identify ways of improving operations.

For Tanzania and other participating countries, the lasting measure of success will be whether the exchanges lead to stronger governance, better services and wider participation in the cooperative movement. Ultimately, modernising SACCOs is not only about introducing new technology. It is about ensuring that cooperative institutions remain accessible, accountable and relevant to the people whose savings and economic ambitions sustain them.