THE ROLE OF SAVINGS AND CREDIT COOPERATIVES (SACCOS) ON FINANCIAL INCLUSION IN ZIMBABWE

This paper investigated the role of Savings and Credit Cooperatives (SACCOs) in Zimbabwe using a national baseline survey. Several economic challenges over past two decades left ordinary citizens unbanked financially excluded. SACCOs are viewed as viable option towards financial inclusion. Classical modern theoretical literature well experiences from other African countries were discussed. Data was collected triangulation method questionnaires, interviews focus group discussions (FGDs) across 147 SACCOs. It observed that there around 6,028 cooperatives with only 4.8% (289) being majority members cannot distinguish between More than 90% cited political conditions eroded their savings value thereby reducing confidence thrift models. 77 (52.8%) do not own assets, 6.2% have 1,000 members. Discrepancies emanate inconsistent subscriptions, unfavorable outdated government by-laws. classified high-risk borrowers due to subscriptions poorly audited statements resulting high interest rates adverse selection. The study recommends additional training increase administrative capacity scope SACCOs, increased coordination operations reduce systematic risk through consistent by-laws policies stimulate stability restore sector.