Technology and Governance as Crucial Elements for Strengthening SACCOs Across Africa

As financial services transition to digital platforms, savings and credit cooperative societies (SACCOs) across Africa are under increasing pressure to modernize operations, enhance accountability, and develop services aligned with the needs of younger generations.

For millions who rely on cooperatives for savings, loans, and economic financing, adapting to technological advancements has become critical for institutional sustainability.

Beyond financial services, robust cooperatives can uplift household livelihoods, support small businesses, and expand access to banking for underserved populations.

These topics are central to the 26th African Savings and Credit Cooperatives Congress (SACOS Congress 2026), currently underway in Dar es Salaam.

The event unites over 1,300 participants from 28 countries to exchange insights, address cooperative movement challenges, and strategize performance enhancements across the continent.

Tanzania Federation of Cooperatives (TFC) CEO Mr. Fares Muganda emphasized that cooperatives must embrace technologies like artificial intelligence to boost efficiency, attract youth and women, and drive economic growth.

“Today’s world is shaped by science and technology, and we cannot ignore its influence. Institutions must adapt to emerging challenges by integrating new technologies to expand their reach and impact,” Mr. Muganda stated.

He noted that technology is no longer a supplementary tool but a core component of modern economic participation. Cooperatives must align with younger generations’ expectations, particularly as Tanzania advances its Development Vision 2050 for inclusive growth.

“Young people are a vital demographic. National policies and Tanzania’s Vision 2050 emphasize integrating youth and women into the economy. Without addressing their technological interests, reaching these groups becomes challenging,” he explained.

His remarks highlight a continental challenge: balancing traditional cooperative values with evolving digital and economic realities.

Youth increasingly rely on digital platforms for communication and transactions. Cooperatives clinging to conventional methods risk losing relevance. Digitization enhances accessibility and member engagement.

Mr. Muganda asserted that technology can modernize operations, improve member communication, and develop responsive services across sectors like agriculture, fishing, transport, housing, mining, and savings.

However, adoption requires more than software. Leaders must strengthen management, maintain accurate records, and prioritize members’ interests in decision-making.

Registrar of Cooperatives Dr. Benson Ndiege affirmed that technology enhances SACCO management through improved record-keeping, data accuracy, and service delivery. Digital platforms enable members to access accounts and apply for loans remotely, increasing convenience.

“Technology simplifies operations. Members can check balances and request loans from anywhere without visiting offices,” Dr. Ndiege noted.

He added that digital systems provide transparency into financial positions, including contributions and repayments, which are vital for informed lending and strategic planning.

Without reliable data, cooperatives struggle to identify weaknesses, forecast realistically, or assess policy effectiveness.

Dependable statistics support better planning and evidence-based strategies. Digital record-keeping mitigates risks of lost or misplaced documents, fostering transparency and accountability.

Accurate records help members track savings, enable leaders to detect irregularities, and build confidence in cooperative institutions.

Trust is foundational in SACCOs, where pooled resources depend on responsible management and procedural adherence.

Dr. Ndiege stressed that good governance and technology adoption are key to sector competitiveness. He cited Kenya’s SACCO advancements as a model for Tanzania to emulate.

The congress featured sessions on governance, technology, and gender inclusion to equip participants with actionable strategies for institutional improvement.

For lasting impact, leaders must operationalize insights through enhanced financial records, internal controls, digital expansion, and member education.

SCOS Tanzania CEO Mr. Hassan Mnyone highlighted the congress as a platform to evaluate SACCO sector progress and growth strategies. Hosting the event also showcases Tanzania’s capacity to attract global gatherings, stimulating local economies.

With participants from 28 countries, the congress bolsters Tanzania’s reputation as a regional cooperative hub and fosters cross-border professional partnerships. The sector has advanced in governance and compliance, aiming for greater competitiveness.

Mr. Mnyone received the AKOSCA Visionary Award, recognizing collective efforts to strengthen SACCOs rather than individual achievement.

“This award reflects our journey revitalizing Tanzania’s SACCO sector and protecting members’ interests,” he said. He credited government agencies, the Tanzania Cooperative Development Commission, and development partners for their contributions.

In 2025, Tanzanian SACCOs held assets valued at 1.6 trillion shillings, serving 2 million members. This growth underscores the importance of robust systems to manage expanding portfolios and support broader economic development.

Effective governance and modernized systems are essential to handle larger savings volumes, loans, and member data responsibly and inclusively.

The congress bridges technological innovation with trust-building and financial inclusion, emphasizing that digital solutions must align with strong management and member-centric approaches.

As the event concludes on October 16, participants aim to implement lessons in their institutions, fostering sustained sectoral growth.

Success will be measured by improved governance, service quality, and participation in the cooperative movement. Modernizing SACCOs is not just about technology—it is about ensuring accessibility, transparency, and relevance for members sustaining economic progress.

Source link